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This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
Since 2022, Andalusia has taken a bold step in Spain’s fiscal landscape by fully eliminating its regional wealth tax through a 100% exemption. As of 2025, this measure remains in effect, positioning the region as one of the most attractive destinations in Spain for high-net-worth individuals and international investors.
But what does this mean in practice? When is the tax due? And does any similar tax still apply? Below, we answer all your key questions.
How does the wealth tax abolition work in Andalusia?
Since the 2023 tax year, Andalusia applies a 100% tax credit (bonificación) on the regional Wealth Tax (Impuesto sobre el Patrimonio). In practice, this means that no taxpayer—whether resident or non-resident—has to pay the tax on assets located in Andalusia.
The following standard exemptions still apply:
- A general allowance of €700,000 per person.
- An additional €300,000 exemption for the taxpayer’s main residence.
These thresholds already excluded most taxpayers from paying the tax. Now, thanks to the 100% exemption, all individuals are fully exempt in Andalusia, regardless of their net worth.
Does any other similar tax still exist?
Yes. Although Andalusia no longer levies the regional wealth tax, the Spanish government introduced a new national tax in 2023: the Solidarity Tax on Large Fortunes (Impuesto de Solidaridad sobre las Grandes Fortunas). This tax remains in force in 2025.
Key points about this state-level tax:
- It applies to net wealth exceeding €3,000,000.
- The same €700,000 personal allowance and €300,000 main residence exemption are applicable.
- It cannot be reduced or eliminated by autonomous communities. Therefore, it applies nationwide, including in regions like Andalusia and Madrid.
This tax was created to compensate for lost regional tax revenue and to ensure that ultra-high-net-worth individuals still contribute at the national level.
When are these taxes assessed and filed?
Both the regional Wealth Tax (Form 714) and the Solidarity Tax on Large Fortunes (Form 718) are assessed on December 31 each year.
Filing periods:
| Tax | Form | Assessment Date | Filing Period |
|---|---|---|---|
| Regional Wealth Tax (exempt in Andalusia) | 714 | 31 December | April 2 to June 30 (June 25 if paying by direct debit) |
| Solidarity Tax on Large Fortunes | 718 | 31 December | July 1 to July 31 |
Note: Even if you do not owe tax due to the Andalusian exemption, Form 714 must still be filed if your gross assets exceed €2 million.
What is the situation in other regions of Spain?
Andalusia and Madrid are the only two autonomous communities that have fully eliminated the regional wealth tax. All other regions of Spain, except the Basque Country (which has its own tax regime), continue to levy the tax with progressive rates ranging from 0.2% to 2.5% depending on net wealth levels.
Why does Andalusia maintain this exemption?
The regional government introduced this measure to attract wealthy individuals, investors, and retirees to become tax residents in Andalusia. Since its implementation, the region has reported an increase in the number of new high-wealth residents, generating indirect benefits through income tax, real estate investment, and other economic activity.
Conclusion
If you are a resident of Andalusia or are considering relocating, this ongoing exemption offers a substantial fiscal advantage. However, if your net wealth exceeds €3 million, you may still be subject to the national Solidarity Tax on Large Fortunes, regardless of your region of residence.
Would you like tailored tax planning advice or assistance with wealth structuring in Spain?
Contact our team for expert guidance on making the most of Andalusia’s tax incentives.
For a complete overview of taxation in Spain, see our Spanish tax rates and allowances.
Disclaimer: This information is provided for general guidance purposes only and does not constitute personalised tax or legal advice. Each case must be assessed individually according to the client’s specific circumstances. It is essential to consult a qualified specialist before taking any action or making any decision.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
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