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Sunshine, Seaside, and Financial Incentives: Property Investments Surge on the Costa del Sol Following Wealth Tax Elimination

Property investment on the Costa del Sol has grown increasingly appealing in 2024, largely attributed to its enhanced tax benefits for expatriates. One key development is the elimination of the wealth tax, which was formerly imposed on individuals with global assets over €700,000, affecting both residents and non-residents. This change has opened doors for affluent individuals considering buying properties and possibly settling in the region. This transformation is pivotal for potential investors, particularly when coupled with the area's array of tax incentives. These benefits include low inheritance or gift taxes, favourable rates for investment income and capital gains taxes ranging between 19% to 26%, and advantageous treatment of private pensions as investment income. Moreover, modifications to the Model 720 form, mandatory for declaring foreign assets over €50,000, have enhanced clarity and eased worries about hefty fines. Previously, non-compliance or errors in filing could
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