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V1452-14 30 May 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · obligación real

Non-residents liable for Spanish wealth tax on property holdings in Spanish companies

A foreign resident holding a foreign company with 92.76% immovable assets in a Spanish company queries whether it must pay Spanish wealth tax. The DGT confirms that such a company must pay tax under real obligation based on the value of its shares.

The question raised

Whether the taxpayer must be taxed in Spain by virtue of real obligation for Wealth Tax and, if so, what the tax base would be.

The DGT's ruling

According to the Convention between Spain and Germany, assets consisting of shares in a company whose assets consist of at least 50 percent, directly or indirectly, in real estate located in Spain, may be subject to taxation in Spain. Therefore, the taxpayer is subject to Wealth Tax in Spain by virtue of real obligation for 100% of the value of the shares in the company resident in Spain.

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