Abolition of Spanish net wealth tax and its effects

Act 4/2008 of 23 December 2008 abolished the taxation of Spanish wealth and the requirement to file net wealth tax returns with retroactive effect from 1 January 2008. The abolition of net wealth tax was one of the most eagerly awaited measures of 2008, and affects individuals resident in Spain and individuals not resident in Spain, but who own Spanish assets. This note considers the measure and its implications.