Spanish Wealth Tax – Taxation of a German resident who owns a property in Ibiza through a Company

Jun 15, 2023 | Tax Flash

The General Directorate of Taxes (DGT) has issued on February 1, 2023 the binding consultation V0107-23 on the taxation in the Wealth Tax (WT) of a German tax resident who owns 25% of a German limited partnership ( KGaA) whose only asset is a property in Ibiza.

The DGT considers that, in accordance with art. 21.1 of the Double Tax Treat subscribed with Germany and with the new wording of art. 5 of the WT Law, the German tax resident must pay taxes on said WT by real obligation. However, this will not happen if the German company has other investments in other States that represent more than 50% of its assets.


Access the complete binding consultation HERE

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