Wealth tax suppressed from next year?

According to the newsletter “in the law-decree number 2-2008 which the Government introduced on Friday last week and which was published in the Boletin Oficial of 21st of April, the Wealth Tax has finally been withdrawn, but only from next year.

This was an election promise of the PSOE 4 years ago. This means non-residents will have to accept, for this year also, their fiscal representative will collect the tax money of their fees, for the simple declaration (often the fees have been higher than the taxes).

Since the fiscal representatives in most cases do their job based on an agreement that must be canceled at the end of the preceding year and also that they have a right to present the total sum due (the two taxes and their fees) to the bank of the taxpayer, we would recommend the following: n In good time before the end of this year (see the actual times limits in the contract) send a letter of cancellation to the fiscal representative (in the form as described in the contract). n Present a letter to the bank instructing them that no amounts are to be paid next year on this contract. Ensure the bank sign a copy that they have received it. n It is expected that some new rules will come from the Hacienda regarding the Income tax declaration for non-residents and there will be a new form to replace the 214.”