In what constitutes the sixth wave of tax reductions in Andalusia (mamacita), its president, Mr. Juan Manuel Moreno, announced he will be approving today a law that suppresses wealth tax going forward.
In plain English, following on the example of the liberal region of Madrid, he will implement an allowance of 100% on wealth tax. Which in practice, is tantamount to abolishing wealth tax altogether in the region of Andalusia, so taxpayers will pay nada.
This change came into force as of the 21st of September 2022, and affects all of fiscal year 2022. Meaning, next year affluent taxpayers will no longer pay wealth tax in Andalusia. This change benefits both residents and non-residents in Spain.
This last (tidal) wave of tax reductions have effectively turned Andalusia into the lowest taxation area in all of Spain, along with Madrid; but they don’t have beaches last I checked! This change makes Andalusia the hottest place to invest in all of Spain.
Changes to IRPF
But wait, it gets even better!
Andalusia’s’ regional government also announced it will deflate personal income tax or IRPF. In other words, the regional government is going to adjust the regional band of IRPF in line with rising inflation. For laymen, this translates into yet another tax reduction on the most important tax: IRPF.
Honestly folks, it doesn’t get any better when it comes to taxation.
Related articles on idealista:
- Andalusia to abolish inheritance tax in 2019 – 18th March 2019
- Andalusia, now a region in Spain with ultra-low Inheritance & Gift tax laws – 1st August 2019
- 8 reasons to buy property on the Costa del Sol (Malaga) – 7th April 2021
- Andalusia lowers taxes, including Property Transfer Tax and Stamp Duty – 13th May 2021
- Marbella’s high-end market is booming! – 30th June 2021
- Andalusia extends its tax breaks on buying property, making them indefinite - 1st December 2021
- 8 reasons why you should invest in Andalusia – 5th January 2022
At Larrain Nesbitt Abogados we have over 19 years’ experience buying, selling, and renting properties. We are also specialized in immigration & residency visas. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88, or by completing our contact form to book an appointment.
Larraín Nesbitt Abogados, small on fees, BIG on service.