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V0574-19 18 March 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · mínimo exento

Tax-free allowance applies individually to each natural person; no joint declarations permitted

A query was raised regarding the application of the tax-free allowance for Wealth Tax in the case of marriage, the valuation of vehicles, and the exemption of pension funds and severance payments. The DGT clarifies that the tax-free allowance is individual and that redundancy payments are not exempt.

The question raised

1) Amount of the reduction for the tax-exempt minimum in the event of marriage.

The DGT's ruling

The tax-exempt minimum applies to each natural person filing individually, as the law does not permit joint filing. Vehicles must be valued at their market value, and the used vehicle valuation tables approved by the Ministry may be used. Pension funds may be exempt if they meet the requirements of Article 4.5 of the LIP. Severance payments are not exempt and must be declared if they form part of the net equity.

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