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.
If you own assets in Spain or are planning to relocate here, the wealth tax (Impuesto sobre el Patrimonio) is one of the first numbers you should run. Spain’s wealth tax applies to net assets above 700,000 EUR, with an additional 300,000 EUR primary residence allowance for residents.
Rates run from 0.2% to 3.5% on the slice above the threshold, and regional rules can change the bill dramatically — Madrid offers 100% relief, Andalusia has abolished the tax, while Catalonia applies the full state schedule.
Who Pays Wealth Tax in Spain in 2026
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Two groups face wealth tax in Spain: tax residents (taxed on worldwide net assets) and non-residents (taxed on Spanish-located assets, primarily real estate). The 700,000 EUR allowance applies to both, but only residents get the extra 300,000 EUR primary residence carve-out. Spouses are taxed individually, so a married couple living in their Spanish home effectively shields up to 2,000,000 EUR of net wealth before the first euro of tax falls due.
How the Calculation Works
Step 1: total your assets at their tax-relevant valuation. For property, the relevant figure is the highest of the purchase price, the cadastral value, or the tax authority’s verified valor de referencia. Step 2: subtract liabilities (mortgages on Spanish property, declared debts). Step 3: subtract the 700,000 EUR personal allowance and the 300,000 EUR primary residence allowance if you qualify as a resident. Step 4: apply the progressive rate scale, which begins at 0.2% on the first slice and climbs to 3.5% at the top. The result is your annual wealth tax liability.
The Regional Effect — Where You Live Decides How Much You Pay
Wealth tax revenue is fully ceded to Spain’s autonomous communities, and each region sets its own bonifications. Madrid maintains a 100% relief, meaning residents owe nothing on the regional portion. Andalusia abolished the regional component, leaving only the state Solidarity Tax (ISGF) for very large estates. Catalonia, by contrast, applies the full schedule with no bonifications. If you have flexibility on where to settle within Spain, the regional choice can change a six-figure tax decision.
The Solidarity Tax (ISGF) — A Second Layer for Large Estates
Beyond the regional wealth tax sits the state-level Solidarity Tax for Large Fortunes (ISGF), originally introduced as a temporary measure and now extended indefinitely. The ISGF reaches estates above the higher state thresholds and applies even where the regional tax has been bonified to zero. For families relocating to Andalusia or Madrid believing they would owe nothing, the ISGF is the part many advisors miss.
Frequently Asked Questions
Do non-residents pay wealth tax in Spain?
Yes. Non-residents pay wealth tax on assets located in Spain (primarily real estate). The 700,000 EUR allowance applies to non-residents as well. The Solidarity Tax (ISGF) may also apply if Spanish assets exceed the relevant state threshold.
How is property valued for wealth tax in Spain?
Property is valued at the highest of three figures: the purchase price, the 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.
Is the wealth tax the same as inheritance tax?
No. Wealth tax (Impuesto sobre el Patrimonio) is paid annually on net assets you hold. Inheritance tax (Impuesto sobre Sucesiones y Donaciones) is paid by heirs when assets pass at death. Both have separate rules and regional variations.
Reviewed by: Maria Luisa de Castro, Expert in Off-plan Property Investment, CostaLuz Lawyers. Last updated: May 2026.
CostaLuz Lawyers regularly advises international families on Spanish wealth tax planning.
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.