Wealth Tax

If you are resident in Spain, wealth tax (impuesto sobre el patrimonio) is assessed on the combined value of most of your worldwide assets, such as real estate, investments, jewellery, art, furniture, cars and boats.  Thanks to the allowances, it generally only affects individuals with assets over €1,000,000. Some Spanish regions have moved to abolish it or only tax much higher wealth, so seek advice for your area.  While the Spanish solidarity tax may still apply, it tends to only affects residents with wealth above €4,000,000. Non-residents are only assessed on Spanish assets.

In France, wealth tax (Impot sur la fortune immobilière (IFI)) only applies to real estate assets, whether owned directly or indirectly.  You’ll face this tax if you live in France and your worldwide real estate assets are worth over €1.3 million.  Non-residents are liable if they own French property valued over the threshold.

France no longer applies wealth tax to other assets such as savings and investments, making them a more tax-efficient option if you have capital to invest.

Wealth tax in Portugal comes in the form of ‘Adicional Imposto Municipal Sobre Imóveis’ (AIMI), which is limited to Portuguese property. It only affects you if your share in a property exceeds €600,000, and just on the amount over this threshold.

There may be steps you can take to reduce your wealth tax liability or eliminate it, particularly on your investment assets in the case of Spain.

If you haven’t relocated to France, Spain or Portugal yet, you can get the most benefit by taking our professional advice before you buy property and move.

We’ll help you understand how the French, Spanish and Portuguese wealth tax rates, rules and allowances affect you, and structure your assets to reduce your overall tax liabilities.