I AM NOT A TAX LAWYER SO PLEASE TAKE ADVICE FROM YOUR PROFESSIONAL ADVISER
The Wealth Tax has been reinstated, supposedly for the next two years, but many suspect it will be extended for longer.
What does it mean?
Individuals who do not have their tax residence in Spain will be taxed on their Spanish assets. Such assets appear to be limited to properties, boats etc., but does not apply to stocks and shares, nor stockholding in Spanish companies nor to money in the bank There is a minimum tax-free threshold of € 700 000.
How much do you have to pay?
On properties etc. with value over € 700 000, the amount payable will be on a progressive scale between 0.2% and 2.5%. It is important to note that apart from the € 700 000 limit, any mortgage on the property is also allowable before applying the tax.
Who has to pay?
If you are a resident in the Balearics and by that I mean that you make a tax declaration in Spain, (not just holding Resident's Certificate) you should not be liable to Wealth tax.
In other areas of Spain you should consult with your local Government office as the decision as to the application of this tax has been left to the provincial governments to decide.