New lump-sum exemption for non-resident taxpayers

Non-resident taxpayers are subject to wealth taxes in Spain for their assets located here. Since 2022, this obligation has been based on a dual scheme that includes a wealth tax (which depends on the regulations of the autonomous communities) and a complementary tax on large fortunes (which aims to ensure the levy in communities that exempt wealth tax and was constitutionally validated recently).

Non-resident taxpayers of the tax on large fortunes were excluded from two tax benefits applicable to resident taxpayers: the EUR 700,000 lump-sum exemption, and the maximum limit on the chargeable wealth tax (although regional courts have upheld the extension of this tax shield).

On December 28, 2023, the Spanish government has approved Royal Decree-Law 8/2023, which includes different tax measures. In particular, it has extended the EUR 700,000 lump-sum exemption to non-resident taxpayers retroactively. This means that not only will the exemption be applied in their 2023 tax return, but now these taxpayers can also apply the exemption in their previously filed 2022 return (filed in July through Form 718) and ask for the refund of the resulting amount.

Considering that applicable tax rates depend on the amount of the taxpayer’s wealth, together with the potential application of double tax treaties, a case-by-case analysis is required to calculate the amount of the refund. However, in general, a minimum refund of approximately EUR 12,000 could be estimated.

Finally, special attention should be paid to the procedural aspects of requesting the refund, since there is an ongoing amendment of the provisions that addresses the requirements for filing returns corresponding to previous years.