Wealth tax in Spain: who pays, how much, and the solidarity tax

What Spanish wealth tax is

Wealth tax (Impuesto sobre el Patrimonio) is an annual tax on your net assets on 31 December. It is a state tax, but the regions collect it and can change the allowance, rates and reliefs. The result is a patchwork: the same person can owe nothing in Madrid and a large bill in Valencia or Catalonia.

• Spanish tax residents pay on their worldwide assets.
• Non-residents pay only on assets located in Spain, mainly property, Spanish bank accounts and shares in Spanish companies.

Debts reduce the taxable amount. For a non-resident, only debts linked to the Spanish assets count, such as a Spanish mortgage on the property. Property is valued at the highest of its valor catastral, the value set by the tax authorities, or the price paid.

Thresholds

State rules

The state allowance (mínimo exento) is €700,000 per person. Spanish residents can also exempt their main home up to €300,000. A resident couple owning jointly can each use both allowances. That means up to €2 million in total before any wealth tax, if €600,000 of it is the main home.

Regional allowances

According to the Ministry of Finance's summary for 2025:

In Madrid, Andalucía and La Rioja, the 100% relief is limited while the solidarity tax exists. The relief is reduced so that wealth tax paid there matches what the solidarity tax would take, and the money stays with the region. For most people below €3 million it still means no wealth tax. Check the current rules with the regional tax agency, as they change often.

Non-residents

If you live abroad and own a Spanish home, you pay wealth tax only if your net Spanish assets exceed the allowance. Non-residents cannot use the €300,000 main-home exemption. Since 2015, after an EU court ruling on inheritance tax, non-residents can apply the rules of the region where most of their Spanish assets are. Before that, they could only use the state rules. Spanish courts have since applied this to non-EU residents too.

Example: a UK resident owns a villa in Marbella with a valor catastral and purchase price of €1.2 million, and a €400,000 Spanish mortgage. Net Spanish assets are €800,000. That is above €700,000, but Andalucía's 100% relief means no wealth tax is due. The same net value in the Valencia region would be below its €1 million allowance. In Catalonia, with a €500,000 allowance and no general relief, tax would be due.

The solidarity tax on large fortunes (ITSGF)

The Impuesto Temporal de Solidaridad de las Grandes Fortunas was created by Ley 38/2022 for 2022 and 2023. It was meant to stop regions from cancelling wealth tax. Despite "temporary" in its name, Real Decreto-ley 8/2023 extended it until the wealth tax system is reformed. It still applies in 2026: in June 2026 the Agencia Tributaria updated Form 718 for the 2025 tax year, filed in July 2026.

• It uses the same rules as wealth tax: worldwide assets for residents, Spanish assets for non-residents.
• The first €3 million of net wealth is taxed at 0%. Above that, rates are 1.7%, 2.1% and 3.5% in bands. The €700,000 allowance also applies.
• Regional wealth tax paid is deducted, so in high-tax regions the ITSGF often adds little.
• It mainly bites in regions with a 100% wealth tax relief.

Filing

• Wealth tax: Form 714, filed online, usually from early April to 30 June the year after. It is required if tax is due or, even if not, if your gross assets exceed €2 million.
• Solidarity tax: Form 718, filed from 1 to 31 July.

Residents have a combined cap: income tax and wealth tax together cannot exceed 60% of taxable income, with the wealth tax cut by up to 80%. This cap does not apply to non-residents.

Common mistakes

• Using the price you paid years ago. The value is the highest of the valor catastral, the value set by the tax authorities, or the price paid, so check each one.
• Forgetting Spanish bank balances. Non-residents' Spanish accounts count too, not just the property.
• Assuming a 100% relief means no filing. Filing can still be needed if gross assets exceed €2 million.

Related taxes

Wealth tax is one of several yearly costs. Non-residents also pay non-resident income tax and IBI. See our overview of property taxes in Spain and, for estate planning, our inheritance tax guide.

Check before you buy

Wealth tax depends on the property's valuation and on where it sits, so check the valor catastral and the region early. If you'd like a second look at a property, enter the address or referencia catastral on our free property check and we'll get back to you by email.