The Ley 19/1991 de 6 de Junio del Impuesto sobre el Patrimonio (Wealth Tax Act), which applied to both residents and non-residents, was abolished not by repealing the Act but by applying a 100% deduction to the taxable base and ending the obligation to submit a wealth tax return.

Repealing the Act itself would have required changes to the complex sistema de financiación de las Comunidades Autónomas (regional finance system) which would have involved broad discussions with the Gobiernos Autonomicos.

The changes also included repealing several Articles of the Wealth Tax Act regarding the obligation for non-residents to appoint a Tax Representative in Spain and the obligation to submit a return and payment of the tax.

The tax was introduced some 30 years ago as a temporary tax on property or other taxable assets based on the net value of those assets after permitted deductions, such as mortgages, and was collected by regional governments.

The elimination of the wealth tax was initially announced as part of a raft of measures designed to stimulate the Spanish economy.