The division of fortunes is prioritized over relocation to avoid tax


The new temporary government tax on great fortunes, approved in Congress last Thursday, seeks alternatives to try to avoid it. A priori, the division of wealthWithin the family and in tax planning are the most widely accepted options, ahead of relocating wealth abroad, which until now is the minority option to avoid the new temporary tax.

The solidarity tax on large fortunes, which will begin to be paid in 2023 from this financial year, will tax assets of more than 3 million euros with a minimum exemption of 700,000 euros and with the deduction of the amount paid for the regional wealth tax, so it will especially affect taxpayers in the regions that have it subsidized.

To pay as little as possible estates are being reorganized and the rents are being planned, according to tax experts consulted by EFE, who place the movements above all in Madrid as it is the only autonomy with the fully subsidized wealth tax for years (since 2022 Andalusia also has it). “Some fortune will have to go away, but leaving is not so easy and it also depends on the roots that one has in the country”, explains the technical secretary of the Register of Fiscal Advisory Economists (REAF-CGE), Luis del Amo.

In his opinion, “distribute in the clearest“, but provided that the gift and inheritance tax is subsidized in the corresponding region, and taking into account that the transfer does not generate a capital gain that must be declared in the IRPF, as would occur in the case of real estate. Del Amo also points to the possibility of invest in exempt property, such as works of artor in trying to defer income to future years in order to benefit from the income-equity limit, whereby the installments to be paid for both taxes cannot exceed 60% of personal income.

This could be applied, for example, to the collection of bonuses at the end of the year so that the income-equity limit is bypassed, which allows the contribution of the wealth tax to be reduced to 20%, a limit that operates the same for the tax on large fortunes. .

EY Abogados points out other formulas such as “encapsulate income” in investment vehiclespass private assets to the joint venture of the marriage or set up a tax-exempt family business of patrimony, an option that requires more planning time due to all the legal requirements that it entails.

Challenge of self-assessment of the tax

EY Abogados also considers it advisable challenge the self-assessment of the tax on large fortunes to guarantee the return of the amount paid if, if necessary, this tax were declared unconstitutional. The firm recalls that the jurisprudence of the Constitutional Court limits the possibility of reimbursement of a canceled tax to those who have not challenged its payment.

Doubts about the constitutionality of the tax have hovered over its processing in Congress, where it has been included as an amendment to the bill that regulates temporary taxes on banks and energy companies. EY Abogados explains that doubts may arise not only because of the format chosen for approval, but also because of the violation of the financial autonomy of the autonomous communities and due to a possible retroactivity when approved this year, charged to the 2022 financial year itself.


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