Financing and deductibility in Wealth Tax

Regardless of where the funding is obtained abroad or in Spain, this amount will be deductible in the wealth tax.

Debts with financial entities outside Spain must also be considered to reduce the value of real estate taxable for Spanish Wealth Tax.

According to the Binding query 0393 - 24 of March 12, a loan arranged with a foreign bank, to acquire a property in Spain, will be deductible in the calculation of the Wealth Tax, in case that it can be demonstrated that the credit has been used for the acquisition of the property.

Therefore, what is relevant for the deductibility of the debt in the Wealth Tax is the purpose of the loan, with the origin of the credit not being relevant.