Reducing wealth tax on second home some say would boost investment.

Reducing wealth tax on second home some say would boost investment. | Majorca Daily Bulletin reporter

Palma06/10/2022 12:12
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There are mounting calls from certain sections of society, including Majorca Daily Bulletin online readers for the Balearics to follow the examples set by Andalusia and Madrid and scrap the wealth tax imposed on second homeowners to attract more investment.

The policy, introduced by the ruling centre-right Partido Popular in both regions, reduces the amount of taxes that expatriates have to pay on their properties, making Andalusia more attractive to foreigners looking for a second home in Spain.

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The wealth tax (or impuesto de patrimonio) was previously imposed to residents and non-residents with a net worth of €700,000 and over.

Spanish nationals were charged on worldwide assets, while non-residents on Spanish assets only.
Now, Andalusia is the Spanish region with the second lowest tax requirements only after Madrid.

The wealth tax reduction is part of a plan to reduce the impact of rising living costs in Andalusia.
With this move, the region hopes to attract investment to the area, promote economic activity, and increase job opportunities and funding for public services.