Catalonia is the first Spanish autonomous community to introduce a special tax on luxury goods. The anti-fraud measurement is introduced retroactively.
0.2 to 2.75% tax on luxury possessions
All these assets are considered ‘non-productive assets’ and the owners must pay a tax of between 0.2 and 2.75 per cent.
The new measure concerns the following goods, registered in the name of legal persons:
- Real estate
- Vehicles with a capacity of more than 200hp
- Pleasure yachts
- Helicopters
- Private aircrafts,
- Antiques
- Jewelry
- Art works
Value
In the case of real estate, the cadastral value will be taken as the starting point. When it comes to art and antiques, the current value is being taken into consideration. For all the other goods, the same criteria are applied as for the determination of taxes in the case of inheritances, donations, patrimony transfers and documented legal acts.
Retroactive
The measure is introduced retroactively and taxpayers have until November this year to submit and pay the taxes due for 2017, 2018 and 2019.
Fight against fraud
The purpose of the measure is to prevent people from declaring their assets in the name of companies, in order not to declare them within their wealth tax declaration. The regional government wants a better distribution of wealth in the region and also considers the measure as anti-fraud.
Green light
The measure has already been approved by the regional government and now it is up to the regional parliament to decide on it. The parliament gave the green light already in 2017, but the Constitutional Court suspended the proposal. In February 2018, the measure was accepted after a substantive change.
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