Case-law alert: Spanish Wealth tax on real estate held by non-residents through foreign entities
18/02/2021
Case-law alert: Spanish Wealth tax on real estate held by non-residents through foreign entities
Flash informativos
On December 3 2020, the Court of Justice of the Balearic Islands (case 621/2020) ruled on whether a non-Spanish resident (German tax resident), who indirectly owned real estate located in Spain, should be liable with Spanish Wealth Tax (WT).
In the case judged, the individual directly owned shares in a German company (GmbH) which, in turn, owned shares of a Spanish company (SL) where more than 50% of the assets were real estate located in Spain. The Court concluded that the individual did not own a Spanish situs asset and, therefore, should not be considered liable with Spanish WT.
At LENER, we have analyzed the case and the consequences for the non-residents indirectly owning Spanish real estate in the following document:
More information:
Guadalupe Díaz-Súnico
Tax Department Partner
Blanca Vicens
Tax Department Senior Associate
