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V1073-22 13 May 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · obligación personal

Residents in Spain are liable for worldwide wealth and inheritances, subject to international treaty exemptions

A French resident in Spain enquires about the valuation of their French company shares, deductions for taxes paid in France, and future inheritance taxation. The DGT clarifies that the individual must pay tax on their worldwide wealth, and the France-Spain double taxation treaty limits Spain's taxing power over real estate and tangible assets.

The question raised

1. Regarding Wealth Tax:

The DGT's ruling

The resident in Spain is taxed by personal obligation on their entire net worth, including assets in France, and may apply the double taxation deduction under Article 32 of the LIP. Holdings in entities with their own legal personality are valued according to Article 16 of the LIP. In successions, although the resident is taxed in Spain, the Convention establishes that real estate is only taxed in France and incorporeal assets (such as securities or life insurance) are taxed where the deceased resided.

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