Form 714 is a document where the Wealth Tax is declared, this being a strictly direct tax of a personal nature that is levied on the net worth of individuals.

From April 7 to June 30, 2021 we are in the voluntary term of declaration of the Wealth Tax of 2020 (Form 714). At this time, it is convenient to check if we have to carry out this procedure since, as with personal income tax, not all natural persons are obliged to present it, it will depend on whether or not they exceed a series of limits in the value of their goods and rights.

Thus, article 37 of Law 19/1991, of June 6, on Wealth Tax, on persons required to file a return, establishes the following:

Taxpayers are required to submit a declaration

  • When, in the absence of this circumstance, the value of their assets or rights, determined in accordance with the tax regulations, is greater than 2,000,000 euros
  • or, whose tax quota, determined in accordance with the regulations governing the Tax and once applied the deductions or bonuses that proceed, results to pay taxes.

The value of your assets or rights is greater than 2,000,000 euros

For the purposes of applying this limit, all assets and rights of the taxpayer must be taken into account, whether or not they are exempt from Tax, computed without considering the charges and encumbrances that decrease their value, nor the debts or obligations personal accounts for which the taxpayer must respond.

In the case of non-residents who pay this tax, by real obligation they will only take into account the value of the assets and rights of which they are the owner that are located, could be exercised or would have to be fulfilled in Spanish territory.

The tax rate for this tax is to be entered

Even if the total value of your assets or rights is less than 2,000,000 euros, you will have to file the Wealth Tax declaration if you have to pay the resulting fee.

This fact will occur when the tax base, that is, the value of the net worth of the taxpayer, is higher than the exempt minimum:

The habitual residence is exempt, with a maximum amount of 300,000 euros.

  • In general: 700,000 euros
  • In Aragon: 400,000 euros
  • In Catalonia: 500,000 euros
  • In Extremadura: 500,000 euros in general, 600,000 euros with a degree of disability equal to or greater than 33%, 700,000 euros with a degree of disability equal to or greater than 50% and 800,000 euros with a degree of disability equal to or greater than 65 %
  • In the Valencian Community: 600,000 euros in general and 1,000,000 euros with a degree of mental disability equal to or greater than 33% or with a degree of physical or sensory disability equal to or greater than 65%.

In addition, in the Community of Madrid there is a 100% discount on the Wealth Tax quota, so that only those who have assets of more than 2,000,000 euros will have to present this declaration, although without income.

If you have questions about how to fill in this form, contact Arintass and we will answer all your questions.

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Ramón Sánchez

Financial Accounting Specialist