Government to eliminate Wealth Tax

MADRID.- The Board of Ministers has approved the fiscal and economic measures announced to reactivate the Spanish economy and fight against deceleration, which signifies a 10,000 million Euro aid to families and businesses.

The fiscal and economic measures elaborated by the Executive also include the elimination of Property Wealth Tax from the 1st of January 2008.

The initiative means that close to 1 million contributors will save 1.800 million euros. This means that this will be the last year that declarations for this tax will need to be presented.

The elimination of this Tax was included in the PSOE’s political programme but hadn’t been announced until now as one of the urgent measures taken to reactivate the economy.

Also refurbishment of buildings will have a better tax situation as it will be possible to recuperate VAT paid. Works done on a building are considered as “refurbishment” when their cost exceeds 25% of the price of acquisition of the property, without including, as it was until now, the price of the ground.

This last measure will come into force next year and it is estimated that it will pay around 6.000 million euros in advance to businesses during 2009, instead of having to wait until 2010, as would happen with the current deadline.

Source: José Navas/Agencias. El Mundo, 18/04/08
Translated by: Pia Arrieta

Diana Morales, 04 Jul 2008 - Intelligence