Avoid a €500,000 Shock: The Truth About Spain’s Solidarity Tax with Miriem Diori, MDG Advisors

In this interview, Marc Elliott from Fluent Finance Abroad and tax expert Miriem Diori García (MDG Advisors, Málaga) discuss how Spain’s Wealth Tax and the State Solidarity Tax apply to high-value property purchases in Andalucía. They cover who is affected, thresholds, rates, assets included, common pitfalls, and practical planning options such as joint ownership and secured mortgages. Watch the previous interview with Miriem here:    • Interview with Miriem Diouri García, Found...   Connect with Miriem:   / miriem-diouri-garc%c3%ada-00a32524   Get in touch with MDG Advisors: C/ Císter 5, 2ºB, 29015, Málaga +34 952 21 54 31 [email protected] https://mdgadvisors.es/en/mdg-advisor... Get in touch: https://fluentfinanceabroad.com/conta... San Pedro Office Av. Marques del Duero 76, 3º C, San Pedro Alcantara, 29670 Marbella, Malaga, Spain Email Address: [email protected] Phone Number: +34 952 85 36 47 UK Phone Number: +44 (0) 2033939902 US Phone Number: 001 2023791946 Sotogrande Office Fluent Finance Abroad, Sotogrande, c/ Altamira, 5. Edf. Ayala. Local 24, Pueblo Nuevo de Guadiaro, Cádiz 11311 Phone Number: +34 951 568 930 [00:00:00]: Introduction to wealth and solidarity taxes [00:00:29]: Meet guest Miriem Diori from MDG Advisors [00:01:03]: MDG Advisors’ background and team [00:01:31]: Client profile and international focus [00:02:05]: Expertise in international tax matters [00:02:30]: Today’s focus: solidarity tax overview [00:02:34]: Wealth tax definition and history [00:03:19]: Andalusia’s 100% wealth tax rebate [00:03:30]: National solidarity tax introduced [00:03:45]: Threshold: above €3.7 million [00:04:12]: Why non-residents must pay attention [00:04:28]: Case study: €17m home, €500k yearly tax [00:05:25]: Wealth-based taxes erode assets [00:05:48]: Many buyers unaware of these taxes [00:06:42]: Need for strategies and structures [00:07:04]: What assets are included in tax [00:07:34]: Example: property plus cash triggers tax [00:08:01]: Planning ahead to mitigate exposure [00:09:06]: Split ownership between spouses [00:10:05]: High-end purchases require careful planning [00:10:24]: Example couple: thresholds and exposure [00:11:02]: Solidarity tax rates and bands [00:11:42]: Company versus personal ownership [00:12:22]: Keep it simple for personal use [00:12:56]: Mixed use renting may need a company [00:13:12]: Use mortgages to reduce net value [00:13:31]: Net value equals value minus mortgage [00:13:55]: Lower LTV can be sufficient [00:14:31]: For ultra-high-end, mortgage beats tax [00:15:36]: Financing often cheaper than paying cash [00:16:26]: Leverage can optimize overall returns [00:16:46]: Structure properly to avoid surprises [00:16:54]: Legal options within the law [00:17:10]: Clients are increasingly sophisticated [00:17:38]: Importance of advisors and bank contacts [00:18:12]: Tax can deter high-end buyers [00:18:43]: Solidarity tax counters regional rebates [00:18:49]: Wealth tax is rare in Europe [00:19:03]: Moral debate: taxing what you own [00:19:33]: Educating buyers to reduce fear [00:20:14]: Seek legal, tax, finance advice early [00:21:00]: Ensure loan is mortgage, not personal [00:21:42]: Get informed to avoid costly mistakes [00:21:46]: One-month use versus €500k tax [00:22:18]: Wealth and solidarity tax coordination [00:22:40]: Wrap-up and invite further questions [00:23:02]: Thanks and closing remarks