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valjon posted an update in the group
Rothschild Victims 11 years, 9 months ago Am I right in thinking that the capital invested overseas by the lending bank against the value of the property, must, under the new Spanish tax laws, be declared as an asset to the Tax Office, despite the fact that the investment is in the name of the lending bank?
According to our lawyers you are correct in your assumption. The ruling states that as the loan was not for the purpose of purchasing the property, it cannot be deducted from the escritura value, therefor you will have to pay wealth tax on the total amount. It matters not that the funds have been invested abroad and in who’s name they are kept. Bear in mind that the minimum taxable base is 700,000 EURO, plus a further 300,000 on the habitual residency. Therefor if you are resident the first 1,000,000 is exempt and if a non resident you would pay on a 1,000,000 home a bill of around 800 euro which is 0.3% on 300,000. I would imagine the majority of resident expats would not pay. Of course one would also have to take the other worldwide assets into account. There is a sliding scale which I could send to you privately if you are interested. If you are a client of Lawbird they will advice alternatively speak with you tax advisor.