Did the Spain wealth tax influence your decision on where to live in Spain?

Question about the Spain wealth tax

How much did the Spain wealth tax influence your decision on where to live in Spain?

Answers

These are the answers of some Facebook group members:

”It’s a factor, but if you’re wealthy enough to owe a lot it doesn’t matter”

”The Spain wealth tax has to be taken in context. Start with income taxes: higher than in the US but generally offset most or all of US taxes. Then, look at local/regional/property taxes: much, much lower than in the US, and that could be huge direct annual savings for big state and property tax payers in California, NY, NJ or others. Next: look at healthcare insurance and healthcare costs: probably much, much lower than for most in the US, especially if you are making too much money to take advantage of Obamacare options. Then, look at life expectancy: Spain is in Top 5 Global ranking for national life expectancy; if you move here and slow down, enjoy a Mediterranean life style and diet, you might just live 2, 3 or 5 years longer in better health. No matter how wealthy you are, you can’t “buy” extra life expectancy, here the life style can help make it happen. Finally: make sure you are aware of how much a “quality of life” is to be valued. Best wishes! PS most of us retiring here, including me, don’t have the wealth tax influence issue to consider at all. I’m pleased for you that it is an issue”

”A lot. We would only live in Madrid. You do not have to be super rich to pay the wealth tax in some of the autonomous communities. In some, it kicks in after less than a million Euros”

”not at all. I really want to concentrate on quality of life. As someone who has never paid into their tax system although I have in the EU I think I just want my quality of life to be the best it can be at whatever cost that is financially to me. That’s just my take, I realize others see it differently”

”Valencia just got rid of the inheritance and gift tax a few months ago!!! Finally”

”Many regions don’t have it, speak with Spanish tax professional before moving”

”I’m getting the sense that taxes in Spain are high and you pay taxes for everything. My wife is dealing with an inheritance and it has been a total nightmare”

”I’m hoping our current income sources is less confusing since we do not have investments. We live in US. I receive my SS and a pension. My husband only SS. Our combined income is @ $5000 per month. I’m hoping this would be enough to live somewhere in Spain if we sell our home which is paid off. My worry is how will Spain tax our home and our current income”

”Wealth tax is one thing, inheritance is a bigger deal as in many countries it’s not taxed. For us these 2 influence when we would move as tax residents. For some years we are planning to be part-time in Spain”

”There is no wealth tax in Andalusia region”

”It sounds scarier than it actually is. Get an accountant to run your own tax profile. When we ran the real numbers we were like “oh that’s it”? There is a lot of US common income types that are excluded. I’m more scared of property taxes in many states than this”

In conclusion, according to Spainguru Facebook group members, some considered it a significant factor, especially in certain regions, others focused on broader aspects such as quality of life, overall tax benefits, and healthcare advantages. Many pointed out the importance of understanding regional differences and consulting with Spanish tax professionals. Additionally, there were concerns related to inheritance taxes. Overall, while the wealth tax is a consideration, it’s just one of many factors influencing decisions about living in Spain.

We highly recommend you reading Spainguru’s article on the Spain Wealth Tax in 2023