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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.
A new tax has come into effect in Spain, which will affect those with assets of more than three million euros.
This temporary measure, covering the 2022 and 2023 tax years while its overall impact is assessed, is called the Impuesto Temporal de Solidaridad de las Grandes Fortunas (Solidarity Tax for Large Fortunes).
Modelo 718 (Tax Form 718), used for the declaration of this temporary tax, is now operational after its activation order was published in the Official State Gazette.
Is this another version of the Wealth Tax?
Spain’s Solidarity Tax for Large Fortunes is a new, complementary tax to the existing Wealth Tax that the Autonomous Communities collect for the regional coffers.
In order to avoid double taxation on the same concept, the amount paid in Wealth Tax is deducted from the amount to be paid for the Solidarity Tax for Large Fortunes.
What is the tax rate on the Solidarity Tax for Large Fortunes?
There are three tax brackets for Spain’s new temporary Solidarity Tax for Large Fortunes:
- 1.7% for assets between 3 and 5 million euros.
- 2.1% for assets between 5 million and 10 million euros.
- 3.5% for assets of more than 10 million euros.
Who has to file a Modelo 718 tax form?
Individuals with a net wealth of more than 3 million euros must file a Modelo 718 tax form.
However, taxpayers who pay tax directly to the State are not obliged to file a tax return, as the income from Wealth Tax has not been transferred to any Autonomous Community.
When must the declaration be made?
For the 2022 tax year, the Modelo 718 tax declaration must be filed between 1 and 31 July 2023.
For the 2023 tax year, the window for declarations shifts to July 2024.
How do I file a Modelo 718 tax form?
The declaration for the Solidarity Tax for Large Fortunes must be made electronically.
The Modelo 718 form is available exclusively in digital format, and its filing and payment must be carried out electronically, too.
Don’t get caught out by Spanish tax law!
Taxes vary across Spain and may differ from your home country. So don’t get caught out!
Find out how Costaluz Lawyers can help with our Tax Representation Service.
Contact us today for a free, no-obligations chat. We’re here to help!
For a complete overview of taxation in Spain, see our Your Guide to Spanish Tax.
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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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