Do they pay wealth tax?

Q. My husband and I have two apartments on the Costa Blanca. In the current market, they are probably worth about €250,000 for both. We have owned them since 2002, but have never rented them. We are non-residents. Our solicitor here started taking Spanish wealth tax again in 2014 and we are now paying from €111 to €140 per person per apartment. This is four declarations because we each own half of the properties. Her invoice for this is around €500. I have read that you need assets of €700,000 to pay this tax and no one else here seems to pay it. I would appreciate your advice.

A. Until changes in 2014, non-residents did not have the exemption on the first €700,000 and had to pay Spanish wealth tax from the first euro of valuation. Now they share in the exemption, in the same way as residents, so you should not have to pay wealth tax. Make sure you are not confusing non-resident property owners imputed income tax, declared on Form 210, with Wealth Tax, declared on Form 714.

Send your questions for David Searl through lawyers Ubeda-Retana and Associates in Fuengirola at Ask@lawtaxspain.com, or call 952 667 090.