This reduces the amount of tax paid by expats on their properties. The new policy is likely to make Andalusia attractive to foreigners wanting a second home in Spain.
Among Spain’s 17 regions, Andalusia now has the second lowest tax requirements after Madrid.
The “el impuesto de patrimonio”, or wealth tax, previously applied to residents and non-residents with a net worth of €700,000 and over. It was levied on worldwide assets for Spanish nationals, and Spanish assets only for non-residents.
Andalusia hopes the move will attract investment and lure high-earning taxpayers to the region, increasing employment and funding for public services.
In the last financial year, half of the top 20 highest taxpayers left the region, leading to a €3.5 million loss in wealth tax plus a €14 million loss in personal income tax.
By encouraging high-earners to remain in Andalusia, the region will gain personal income tax.