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, you are not a resident, and at some point someone mentioned a wealth tax — but you have never been sure whether it applies to you, how much it would be, or whether you have been paying the right amount. That uncertainty is exactly what this page is for.
There is now a second reason to check. In rulings of 29 October and 3 November 2025, Spain’s Supreme Court extended the 60% combined income-and-wealth-tax limit (the ‘fiscal shield’) to non-residents, on EU free-movement grounds. Many non-residents who paid wealth tax — or the Solidarity Tax on Large Fortunes (assets over €3,000,000) — now have a refund claim, and there is a limited window to make it. See our non-resident wealth-tax refund guide.
Where you live in Spain can change your wealth-tax bill from zero to thousands — the same assets are taxed very differently across the autonomous communities, and the Solidarity Tax can override a regional exemption.
Quick Answer: Spanish wealth tax is national but modified by each region, so the same assets can mean a large bill in one community and almost nothing in another — and the national Solidarity Tax can override a region’s relief on larger estates. Where you are resident drives the result.
Fast Answer: Spain’s wealth tax (Impuesto sobre el Patrimonio) applies to worldwide assets above €700,000 (with a €300,000 primary residence exemption). Rates vary from 0% in Madrid and Andalucía to up to 3.5% in Catalonia and Valencia. Non-residents pay on Spanish assets only.
How Spain’s Wealth Tax Works
CostaLuz advises expats on where Spanish wealth tax actually bites — modelling your position by region and against the national Solidarity Tax before you become resident, so the bill is planned rather than discovered.
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Spain is one of the few EU countries that still levies an annual wealth tax. It applies to the net value of all your assets (property, investments, bank accounts, vehicles, art, etc.) minus debts, above a tax-free threshold.
Key structural points:
- National threshold: €700,000 tax-free allowance
- Primary residence exemption: €300,000 (only for residents)
- Tax residents: taxed on worldwide assets
- Non-residents: taxed only on assets located in Spain
- Autonomous communities can modify rates, thresholds, and deductions
Solidarity Tax on Large Fortunes (ITSGF)
Since 2023, Spain also imposes the Temporary Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad de las Grandes Fortunas — ITSGF). This national tax was introduced specifically to prevent wealthy individuals from moving to Madrid or Andalucía to avoid wealth tax.
- Applies to net wealth above €3,000,000
- Rates: 1.7% (€3M–€5.3M), 2.1% (€5.3M–€10.7M), 3.5% (above €10.7M)
- Credits any regional wealth tax already paid
- Originally “temporary” but extended through 2026
A landmark Supreme Court ruling in 2025 clarified that non-residents can also benefit from certain deductions.
Wealth Tax Rates by Region (2026)
| Region | Effective Rate | Notes |
|---|---|---|
| Madrid | 0% | 100% bonification (rebate) |
| Andalucía | 0% | 100% bonification since 2023 |
| Galicia | 0.2%–2.5% | €700K threshold |
| Aragón | 0.2%–2.5% | National scale |
| Asturias | 0.2%–3.0% | Higher top rate |
| Balearic Islands | 0.28%–3.45% | Among the highest in Spain |
| Canary Islands | 0.2%–2.5% | National scale |
| Cantabria | 0.2%–2.5% | National scale |
| Castilla-La Mancha | 0.2%–2.5% | National scale |
| Castilla y León | 0.2%–2.5% | National scale |
| Catalonia | 0.21%–2.75% | Own scale, high top bracket |
| Extremadura | 0.3%–3.75% | Highest top rate in Spain |
| La Rioja | 0.2%–2.5% | National scale |
| Murcia | 0.2%–2.5% | National scale |
| Navarra | 0.16%–2.0% | Own foral system |
| Basque Country | 0.2%–2.0% | Own foral system, €800K threshold |
| Valencia | 0.25%–3.5% | Among the highest |
Ceuta and Melilla. A 75% rebate (bonificación) applies to the portion of the wealth-tax liability corresponding to assets located in Ceuta and Melilla. In practice this mainly benefits residents of those cities; for non-residents it is generally limited to shares in companies domiciled there or permanent establishments located there. As with every region, the national Solidarity Tax (ITSGF) can still apply to larger estates.
How to Calculate Your Wealth Tax Liability
- Add up all assets at market value (property, investments, accounts, etc.)
- Subtract debts associated with those assets (mortgage balance, loans)
- Apply exemptions: €700,000 general + €300,000 primary residence (residents only)
- Apply regional rates to the amount above the threshold
- Check the 60% cap: combined income tax + wealth tax cannot exceed 60% of your taxable income (excess wealth tax is reduced, but never by more than 80%)
Planning Strategies for Expats
- Choice of residence: Madrid and Andalucía offer 0% wealth tax (but ITSGF kicks in above €3M)
- Mortgage planning: Outstanding debt on Spanish property reduces the taxable base
- Beckham Law: Those on the régimen de impatriados are only taxed on Spanish assets for wealth tax purposes
- Business exemptions: Shares in qualifying actively-managed businesses may be exempt
Read more: Wealth tax explained for international families.
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Frequently Asked Questions
Do non-residents pay Spanish wealth tax?
Yes, on assets located in Spain. The tax-free allowance is €700,000 but the €300,000 primary residence exemption is NOT available to non-residents.
Is Madrid really wealth-tax-free?
Madrid applies a 100% rebate on regional wealth tax. However, the national Solidarity Tax (ITSGF) still applies to net wealth above €3,000,000, regardless of region.
How is property valued for wealth tax?
At the highest of: cadastral value, acquisition value, or the value verified by tax authorities. In practice, acquisition price is usually the reference for recently purchased property.
When is the wealth tax return due?
Wealth tax (Modelo 714) is filed between April and June each year, alongside the income tax return. It covers assets as of 31 December of the previous year.
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.For a complete overview of taxation in Spain, see our Your Guide to Spanish Tax.
Aviso legal: Esta informacion se proporciona unicamente a titulo orientativo y no constituye asesoramiento fiscal o legal personalizado. Cada caso debe evaluarse de forma individual segun las circunstancias especificas del cliente. Es imprescindible consultar a un especialista cualificado antes de tomar cualquier 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.
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.
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Andalucia is the clearest case of a region using that power — see how Andalucia handles wealth tax.