Tax Havens Within Spain: How Andalusia’s Wealth Tax Reforms are Attracting Global Investors

Spain is known for high taxes, but regional autonomy has created "internal tax havens." Andalusia is leading the charge.

The Wealth Tax (Impuesto sobre el Patrimonio)

Traditionally, this tax hit worldwide assets. However, Andalusia (including Costa del Sol) has effectively abolished it by offering a 100% allowance.

The "Solidarity Tax" Factor

The central government introduced a "Solidarity Tax" to counter this, but it only affects net wealth over €3 million. For investors below this threshold, Andalusia is effectively tax-free on holding wealth compared to other regions.

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