Editorial transparency and use of artificial intelligence
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.
You own property in Spain but you are not a resident. At some point someone mentioned you might owe wealth tax — but you have never been completely sure whether it applies to you, or how much it might be. That uncertainty is exactly what this page resolves.
Non-residents owning Spanish property pay wealth tax only on their Spanish assets above a €700,000 individual allowance (plus €300,000 for a main residence), at rates from 0.2% to 3.5%. A separate state solidarity tax (1.7%-3.5%) applies where Spanish assets exceed €3 million.
Two things shape the picture in 2026: most of Andalucía’s regional wealth tax is reduced or removed, while the state Solidarity Tax on Large Fortunes (Spanish assets over €3,000,000) is now permanent. And in rulings of 29 October and 3 November 2025, the Supreme Court extended the 60% income-and-wealth-tax limit (the ‘fiscal shield’) to non-residents — so if you have been overpaying, you may be able to reclaim it. See our analysis of the 2025 Supreme Court rulings.
If you’re moving to Spain with a foreign property portfolio, pension or investments, the costly surprise is that Spanish wealth tax can reach your worldwide assets — and it bites far earlier than most expats assume.
Spain Wealth Tax
Spain wealth tax applies to worldwide assets held by Spanish tax residents above certain thresholds. In most regions, residents receive a €700,000 allowance plus a €300,000 exemption for their primary residence. Non-residents may also be liable for Spanish wealth tax on Spanish assets.
Many expats moving to Spain incorrectly assume that wealth tax only affects billionaires. In reality, foreign property portfolios, investment accounts, pensions, company shares, and inherited assets can trigger reporting obligations much earlier than expected.
Before becoming Spanish tax resident, international families should review company structures, succession planning, property ownership, and whether the Beckham Law may reduce exposure. We frequently assist UK and US clients relocating to Spain who were unaware of wealth tax implications before moving.
This is general information, not definitive legal advice — every case requires individual analysis.
A clear guide for international families, property buyers and expats moving to Spain.
Get a free written analysis of your case
Email your questions to marialuisa@costaluzlawyers.es and our team gives you a free, personalised written analysis — you can attach any documents or forms. Once everything is clear in writing, we offer an optional free introductory call. The initial written analysis carries no fee (international tax consultancy starts from €200 + VAT).
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This guide has been updated to reflect Spain’s wealth tax and solidarity tax framework for 2026.
Quick Answer — Spanish Wealth Tax in 2026
Spain’s wealth tax applies to net assets above €700,000 (plus a €300,000 primary residence allowance for residents). Rates range from 0.2% to 3.5%. Key 2026 update: the Solidarity Tax (ISGF) has been extended indefinitely. Regional differences are significant — Madrid offers 100% relief, Andalusia has abolished it, while Catalonia applies full rates.
If you are moving to Spain, buying a property here, or relocating part of your assets, you will probably hear about Spain’s wealth tax sooner or later.
Key Information Summary
Plus 300,000 EUR deduction for primary residence. Solidarity tax (1.7%-3.5%) applies above 3M EUR nationwide.
For some people the term sounds alarming. For others it seems distant and theoretical. The reality usually sits somewhere in between.
Spain does apply an annual wealth tax, and since 2023 it has also introduced a Solidarity Tax on large fortunes (ISGF). But whether these taxes actually affect you depends on several factors: where you live, which assets you own, and how your move to Spain is structured.
For international families, understanding these rules early is less about tax optimisation and more about avoiding unnecessary surprises later.
At CostaLuz Lawyers we often explain it this way: wealth tax in Spain is not the same for everyone. Residency status, regional rules and the type of assets you hold can change the outcome dramatically.
Who Pays Wealth Tax in Spain?
The first and most important question is whether you become a Spanish tax resident.
Spain wealth tax for residents
If you are a tax resident in Spain, the country may look at your worldwide assets when calculating wealth tax. This can include:
- foreign bank accounts
- investment portfolios
- overseas real estate
- company shares
- certain beneficial ownership structures.
This does not automatically mean tax will be due, but it does mean that Spain may review your global net worth.
Spain wealth tax for non-residents
If you are not resident in Spain, the scope is much narrower. Spain generally taxes only Spanish-located assets, such as:
- Spanish real estate
- shares in Spanish companies
- assets physically located in Spain.
For many international clients, Spanish property is therefore the most common starting point for wealth tax exposure.
Beckham regime and wealth tax
Clients moving under the Beckham regime are often treated similarly to non-residents for wealth tax purposes.
This means that during the regime period, foreign assets usually remain outside the Spanish wealth tax base, while Spanish assets remain relevant.
Understanding this distinction is particularly important for professionals relocating to Spain with international investment portfolios.
What is the wealth tax allowance in Spain?
Spain provides a national personal allowance of €700,000 per person.
In addition, Spanish residents may benefit from an exemption of up to €300,000 per owner for their main residence.
For example, a married couple living in Spain could potentially benefit from allowances approaching €2 million combined, depending on the circumstances.
Because of these allowances, many expatriates moving to Spain with moderate savings or a family home will find that their wealth remains below the taxable threshold.
Spain’s Solidarity Tax (ISGF)
In 2023 Spain introduced an additional tax aimed at larger fortunes: the Solidarity Tax on Large Fortunes.
This tax generally applies when net wealth exceeds €3 million.
Approximate rates are:
| Net wealth | Rate |
|---|---|
| €3M – €5M | 1.7% |
| €5M – €10M | 2.1% |
| €10M+ | 3.5% |
Any wealth tax already paid is typically credited against the Solidarity Tax.
For individuals with higher-value portfolios or prime Spanish real estate, it is therefore important to review both taxes together rather than separately.
How Spanish property is valued for wealth tax
Spanish real estate is usually the most visible wealth tax asset for international clients.
For tax purposes, property must generally be declared using the highest of three values:
- cadastral value
- reference value (valor de referencia)
- purchase price.
Mortgage debt linked to the property can normally be deducted when calculating the net value.
Because Spain uses specific valuation rules, property owners should not assume that the tax value of a property corresponds exactly to its market value.
Regional differences across Spain
One aspect that surprises many international clients is that Spain does not operate a completely uniform wealth tax system.
The country’s autonomous communities can modify key elements such as exemptions, scales and rebates.
As a result, where you live in Spain can influence the long-term wealth tax picture.
Some regions offer significant relief, while others apply lower thresholds or different tax scales. In addition, several regions now operate under transitional frameworks linked to Spain’s Solidarity Tax.
For international families considering relocation, this means that choosing a region is not only a lifestyle decision. It may also have tax implications over time.
We explain the regional differences in detail in our separate guide:
Spain Wealth Tax by Region: How the Rules Differ Across Spain.
When do you file wealth tax in Spain?
Wealth tax is calculated based on net assets held on 31 December each year.
The filing period usually runs between June and July, alongside the annual Spanish income tax return.
Solidarity Tax filings are generally processed through the Spanish tax agency portal during the same period.
When should you review wealth tax before moving to Spain?
Ideally, wealth tax exposure should be reviewed several months before relocating to Spain.
This allows time to consider:
- which assets are treated as Spanish-located
- whether the Beckham regime may apply
- how regional rules may affect the outcome
- how property ownership should be structured.
For many clients, the review simply confirms that the tax impact is limited. For others, it helps clarify how to organise assets before becoming Spanish tax resident.
Wealth tax and international families
Many of our clients arrive in Spain from countries such as the United States, the United Kingdom or Latin America, where personal wealth is taxed differently.
Spain’s approach is not necessarily harsher, but it works according to its own logic.
This is why early advice is valuable. Understanding how the system operates helps families relocate with confidence and avoid unnecessary complications later.
How CostaLuz Lawyers can help
CostaLuz Lawyers assists international clients relocating to Spain with clear guidance on:
- wealth tax and Solidarity Tax exposure
- Beckham regime planning
- Spanish property purchases
- inheritance and estate planning
- coordination with international tax advisers.
Our clients include international families, retirees, investors and professionals moving to Spain or acquiring property here.
Our approach is simple: clear explanations, practical advice and solutions that work in real life
If you are considering moving to Spain, purchasing property here, or simply want clarity about how Spanish wealth tax may affect your situation, we will be happy to assist.
At CostaLuz Lawyers we work regularly with international families, professionals and retirees who want clear legal guidance before making important decisions. Many questions can be resolved quickly once we understand your residency plans, assets and the region of Spain involved.
You are welcome to contact us for an initial conversation.
Our team works in English and Spanish and assists clients throughout Spain.
Before contacting us
If possible, it is helpful to include a brief summary of:
- whether you are already living in Spain or planning to relocate
- whether you own or plan to purchase Spanish property
- your residency situation (non-resident, visa applicant, Beckham regime, etc.)
This allows us to understand your situation quickly and guide you in the most practical way.
“CostaLuz Lawyers made the whole process stress-free. Professional, responsive, and truly expert in Spanish law for foreigners.”
— Verified Google Review
Read more reviews →Frequently Asked Questions About Spanish Wealth Tax
Do non-residents pay wealth tax in Spain?
Yes. Non-residents pay wealth tax on assets located in Spain (primarily real estate). The allowance is €700,000 for non-residents. The Solidarity Tax may also apply if Spanish assets exceed €3 million.
How is property valued for wealth tax in Spain?
Property is valued at the highest of: purchase price, cadastral value, or the tax authority’s verified value. Since 2022, the “reference value” (valor de referencia) set by the Catastro is increasingly used as the minimum.
Can I avoid wealth tax by buying in Madrid or Andalusia?
Residents of Madrid enjoy 100% wealth tax relief, and Andalusia abolished its wealth tax. However, the national Solidarity Tax (ISGF) still applies to net assets above €3 million regardless of region.
What is the Solidarity Tax (ISGF) in Spain?
Introduced in 2023 as a “temporary” measure, the ISGF applies at 1.7%–3.5% on net assets above €3 million. It was designed to neutralise regional wealth tax exemptions (targeting Madrid and Andalusia). It has been extended indefinitely as of 2025.
When do I file wealth tax in Spain?
Wealth tax (Modelo 714) is filed annually between April and June, alongside income tax. The Solidarity Tax (Modelo 718) follows the same calendar. Both are self-assessed declarations.
Concerned About Wealth Tax in Spain?
Our tax advisors help international families understand and plan for Spanish wealth tax obligations before and after relocation.
Related Tax Guides for Expats in Spain
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Wealth Tax (Impuesto sobre el Patrimonio) by Region — 2026
| Region | Exemption Threshold | Top Rate | Solidarity Tax Applies? |
|---|---|---|---|
| Andalucia | 700K EUR + 300K primary home | 0% (abolished regionally) | Yes — if net assets > 3M EUR |
| Madrid | 700K EUR + 300K primary home | 0% (abolished regionally) | Yes — if net assets > 3M EUR |
| Catalonia | 500K EUR + 300K primary home | 2.75% | Yes — if net assets > 3M EUR |
| Valencia | 500K EUR + 300K primary home | 3.5% | Yes — if net assets > 3M EUR |
| Balearic Islands | 700K EUR + 300K primary home | 3.45% | Yes — if net assets > 3M EUR |
| Murcia | 700K EUR + 300K primary home | 0% (abolished regionally) | Yes — if net assets > 3M EUR |
For a complete overview of taxation in Spain, see our Your Guide to Spanish Tax.
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.
Related Guides
Related guide: our Spanish tax lawyer service for expats.
Reviewed by María Luisa de Castro, CEO at CostaLuz Lawyers — specialist in Spanish & cross-border tax for international families — Updated 2026
This is general information, not definitive legal advice — every case requires individual analysis.
Book a call about your Spanish wealth tax. We will tell you whether you owe, how much, and whether you can reclaim what you overpaid under the old rules. You will leave the call knowing exactly where you stand.
Prefer to write first? Send a message → — María replies within one business day.
Need to speak now? +34 919 499 342 (EN/ES, 24h). Office: +34 956 092 687. Costaluz Lawyers — María Luisa de Castro, ICA Cádiz nº 2745.
Own property near Sotogrande? If your property is in Sotogrande, Alcaidesa, San Roque or the wider Campo de Gibraltar, see our dedicated guide: Legal services for Sotogrande property owners.
Free seminar — 23 July 2026. We cover the Gibraltar Treaty, non-resident wealth-tax refunds and wills for foreign owners, in plain English. Register for the Sotogrande seminar.
Related Spanish tax & residency guides
- Tax Residency in Spain — Complete Guide to Fiscal Status (2026)
- Spanish Wealth Tax for Non-Residents 2026: Rules and Filing
- Capital Gains Tax When Selling Property in Spain — Calculator Guide
- Wealth Tax Spain 2026 — Rates by Autonomous Community
- Protecting Your Wealth in Europe — International Asset Planning for Gulf Families
- New Spain-Netherlands Tax Treaty 2026: What Dutch Residents Need to Know Before It Takes Effect
Want to estimate your Spanish wealth tax? Use our wealth tax calculator: Wealth Tax Spain Calculator: Estimate Your 2026 Liability.
The regional picture diverged sharply after these changes; Andalucia’s position on the regional wealth tax shows one end of that range.
Hello, we are us citizens looking to purchase a property in Girona as non- residents. We are worried about the rax implications since our global wealth exceeds 3 mil euros. We also need a real estate attorney since we have learned that in Spain liens on the house are not disclosed.
Dear Caroline:
I have just sent you to your email our terms and conditions for our service for property purchase.
Here below you can find a comprehensive overview in English of the fiscal responsibilities in Spain for both residents and non-residents, especially those with assets exceeding 3 million euros:
Wealth Tax (Impuesto sobre el Patrimonio):
Residents: Those considered fiscal residents in Spain are taxed on their worldwide assets. Spain has a progressive wealth tax that starts from 0.2% and can go up to 2.5% for the highest values, depending on the autonomous community.
Non-Residents: Non-residents are only taxed on assets located in Spain.
Income Tax:
Residents (Personal Income Tax – IRPF):
Residents are taxed on their worldwide income. Rates are progressive and can vary depending on the autonomous community.
Non-Residents (Non-Resident Income Tax – IRNR): Non-residents are taxed only on Spanish-sourced income. The rate is generally flat but can vary depending on the type of income and tax treaties.
Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones):
Both residents and non-residents can be liable for this tax. The rates and allowances vary significantly between autonomous communities. Some regions offer very favorable inheritance tax regimes, where the effective tax rate can be very low or even zero in some cases.
Reporting Obligations:
Form 720: Residents with assets or rights located outside of Spain valued at more than 50,000 euros in any of three categories (real estate, bank accounts, and other assets) have an obligation to report them annually.
Capital Gains Tax:
Both residents and non-residents are taxed on gains from the sale of assets. While residents are taxed on worldwide gains, non-residents are taxed only on gains from Spanish assets.
Real Estate:
Non-residents owning real estate in Spain must pay a yearly tax based on the property’s value, regardless of any rental income.
Other Taxes: Depending on the nature and location of assets, other taxes like municipal taxes or those related to specific financial products or transactions may apply.
Special Considerations for High Net Worth Individuals (Assets over 3 million euros):
Wealth Tax Limitations: As net worth increases, so does the wealth tax liability. Once assets exceed certain thresholds (varying by region), the tax rate and amount can increase significantly. Some communities offer reductions or exemptions, but they can be limited for very high net worth individuals.
Special Regimes: Spain offers tax regimes targeting high net worth individuals and investors, such as the Beckham Law. These regimes provide significant tax advantages but have specific conditions and requirements.
Tax Planning Opportunities: There are strategies for high net worth individuals to mitigate potential tax liabilities, including the use of Spanish holding companies, restructuring asset ownership, or considering residency changes.
Automatic Exchange of Information: Spain participates in the OECD’s Common Reporting Standard (CRS) initiative, leading to automatic financial information exchanges between Spain and other countries. This impacts privacy and may have tax implications.
Given the complexities associated with substantial wealth and Spain’s potential tax liabilities, it’s even more crucial for high net worth individuals to seek expert advice. The Spanish tax system’s complexity and regional variations make it essential to consult with a tax advisor or legal professional, especially when handling significant assets.
I have asked Ana Landa, Our Tax Advisor, to contact you for a detailed assistance.
Is Valencia getting rid of its wealth tax soon?
Dear Nalyne:
The Valencian government, under a PP and Vox coalition, has initiated several tax relief measures, including practically eliminating the Inheritance and Gift Tax for close relatives and reducing the Property Transfer Tax (ITP) and Stamp Duty (AJD) for young people and disadvantaged groups.
The fiscal reform plan also considers more ambitious changes such as adjusting income tax brackets and lowering maximum rates, along with the potential elimination of the Wealth Tax. This last measure is under review, especially in light of the new national “Grand Fortunes Tax.” The regional government is considering adjustments to the Wealth Tax to ensure it remains effective without disappearing entirely, despite the implications of the new national tax. Additionally, environmental taxes introduced by the previous government are being reevaluated. In 2023, the Valencian Tax Agency collected 2.136 billion euros, a 3% decrease, with significant contributions from the Property Transfer Tax and Wealth Tax.
In summary, Valencia is considering reforms to its Wealth Tax rather than outright elimination, with decisions influenced by national tax policies and ongoing assessments of fiscal measures.
Best wishes,
Maria
Is this just for real estate? Imagine you own shares in a company, 51%, if you are taxed 3.5% in unrealised gains (think a fast growing tech companies) you have to sell your shares to pay the bill? wow…
Hi Rui:
The new Spanish Wealth Tax, particularly the Solidarity Tax for Great Fortunes (ISGF), impacts individuals with significant wealth, including assets like shares in a company. For those owning a majority in a company, such as 51% of shares, especially in a fast-growing tech company, the tax could indeed be substantial.
If the unrealized gains from such shares are taxed at 3.5% (applicable for net worths over €10 million), and if this constitutes a significant part of one’s taxable wealth, it could necessitate selling some shares to cover the tax bill. This situation underscores the complexity of wealth and tax management for high-net-worth individuals under such tax regimes.
Best wishes,
Maria
I’m a non-resident and have a property worth around €400,000. I pay tax in July and then again in December based on the value of the property. I’ve heard that the December tax has been abolished. Is this correct? However, my lawyer has sent me the bill to be paid this December.
Dear Monica,
Thank you for reaching out with your query regarding the taxes on your property in Spain. Based on the information you’ve provided, it sounds like the taxes you’re paying in July and December are more likely related to the Impuesto de Bienes Inmuebles (IBI) rather than the Impuesto sobre el Patrimonio (Wealth Tax).
The IBI is a local property tax in Spain that is paid annually to the local council. This tax is calculated based on the cadastral value of the property and is typically due once a year. However, some councils offer the option to split the payment into two installments, which might explain the two separate payments you are making in July and December.
On the other hand, the Wealth Tax in Spain is an annual tax on the net value of an individual’s assets, including property. The due date for this tax usually falls between April and June, and it’s not typically associated with biannual payments like in your case.
Given your situation, it seems less likely that the December payment you mentioned is associated with the Wealth Tax. It’s more probable that this is the second installment of your IBI payment. However, without seeing the document for payment, this remains an assumption.
If you have any more questions or need further assistance, please feel free to reach out.
Best regards,
Maria L. de Castro
General Director
Costaluz Lawyers
Hello, I am getting contradictory results from my internet search of wealth tax for the canary island residents. Does a canary island resident pay wealth tax or is exempt from it like residents of madrid or andalucia? Thank you.
In the Canary Islands, residents are subject to wealth tax. However, there are specific regional allowances and deductions that may apply, reducing the overall tax liability. Unlike regions such as Madrid, where residents are fully exempt from wealth tax, the Canary Islands do not offer a full exemption.
Hello,
We have Spanish National friends living outside of Sitges (Catalonia), whom are encouraging us to emigrate to their region. However, as British Nationals we are trying to decide which regions have the most favourable tax regimes to move to, in regard to yearly living, inheritance and wealth taxes.
Are we right to be concerned how Catalonia’s tax system would impact us both?
Background: Both will be retired, no children, with a joint portfolio of around €1m, unmarried at present, but would marry if more favourable under Spanish Rules.
Both also Estranged from UK family so can we avoid forced heirship?
What regions would you suggest we consider short-listing at present.
Thank you.
Catalonia has higher taxes, particularly on wealth and inheritance, compared to other Spanish regions. Madrid and Andalusia are more tax-friendly, with Madrid offering a 100% rebate on wealth tax and lower inheritance taxes. If tax efficiency is a priority, these regions might be worth considering.
Spain’s forced heirship rules could be a concern, especially if you’re estranged from family. Consulting a tax advisor is advisable to explore your options, including the potential benefits of marriage under Spanish law.
We’d be happy to assist with any legal matters as you plan your move.
I sold my property outside EU for 125.000€ and in January 2024 transferred 90.000€ to my Spanish account for which I bought a flat in Las Palmas de Gran Canaria. I paid all the related purchase taxes within the required timeframe of one month. These days I should receive the outstanding 35.000€ from that sale again on my Spanish account. I have a temporary non-lucrative visa residency in Spain dating from 27.01.2024 to 27.01.2025 with possibility of extending for 2×2 years which I will do. Only now I found out about reporting transfers from abroad to the tax office. Do I need to report this first transfer as well as second transfer and when do I do it? My first taxation will be due in April 2025. I would like to avoid paying penalties.
Dear Dragan:
Given your situation, it’s important to understand that transferring significant amounts of money from abroad to Spain may come with reporting obligations to the Spanish tax authorities. The specifics of these obligations, such as whether you need to file certain forms or declare the transfers in your tax return, can depend on various factors including the nature of the funds and your residency status.
To ensure compliance and avoid potential penalties, I recommend seeking specific guidance tailored to your circumstances. Our international tax advisor can help you navigate these requirements, ensuring that all necessary steps are taken to report the transfers correctly and that you are fully prepared for your first tax filing in Spain.
If you’d like to arrange a consultation with our tax expert, please let me know, and I’ll be happy to assist with setting that up.
Best wishes
Maria