Back to index
V1947-22 13 September 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · obligación real

German resident exempt from Spanish Wealth Tax as they do not hold assets located in Spanish territory

A tax resident in Germany, who owns a German holding company that in turn owns a company with property in Mallorca, inquired whether they are liable for Wealth Tax in Spain. The Directorate General for Taxes (DGT) ruled that they are not a taxable person because they are not the direct owner of assets located in Spanish territory.

The question raised

Whether the taxpayer is a subject of Wealth Tax in Spain

The DGT's ruling

The taxpayer is not subject to Wealth Tax by virtue of real obligation, as they are only the direct holder of a German entity. Although the Convention with Germany allows for the taxation of holdings in companies whose assets consist of more than 50% in real estate located in Spain, in this case, the parent entity does not meet said requirement. Furthermore, Spanish domestic law does not tax the ownership of shares in non-resident companies held by non-resident natural persons.

Book your free first meeting