Wealth Tax in Spain
Spain taxes wealth, not just income. If your net assets sit above a certain line on 31 December, you may owe the Impuesto sobre el Patrimonio, and once your fortune passes 3 million euros a second state tax, the Solidarity Tax on Large Fortunes, can land on top. What you actually pay depends almost entirely on the region you live in. Here is how it all fits together in 2026.
What the wealth tax actually taxes
The wealth tax is a levy on the net value of what you own, measured on 31 December each year. Net means everything you hold minus the debts against it: property, savings, listed and unlisted investments, vehicles, boats, jewellery, art and business assets, less mortgages and loans. If you are a Spanish tax resident, it looks at your worldwide net wealth. If you are a non resident, it only reaches your Spanish assets, which for most people means a home here and the bank account attached to it. Because a property is usually the largest single item, the way it is valued matters, and that ties directly into buying property in Spain and, for larger holdings abroad, your Modelo 720 asset declaration.
The allowances that keep most people out
Two allowances do most of the work. There is a general exempt minimum of 700,000 euros per person, and a further 300,000 euros for your main home if you are resident. Because spouses are taxed individually on their own share, a couple who jointly own their assets can each claim the 700,000, so a jointly held estate is effectively shielded up to 1.4 million euros before any main home relief. In practice that keeps the large majority of residents and second home owners out of the tax entirely. It is the people above those lines, and above all the people above 3 million euros, who need to read on.
Why your region decides almost everything
The wealth tax is a state tax whose revenue and much of its control has been handed to the autonomous communities, and they have used that freedom very differently. Madrid and Andalucía apply a 100 percent rebate, which means residents there pay no regional wealth tax at all. The Valencian Community raised its exempt minimum to 1 million euros for 2026. The Balearic Islands sit at 3 million, Catalonia at 500,000, and Galicia, Asturias, Cantabria, Aragón and Extremadura each run their own scales. The state scale itself is progressive, running from 0.2 percent up to 3.5 percent on the largest estates. Wealth tax is declared through Modelo 714, filed in the spring alongside the annual income tax campaign, so the two returns tend to be prepared together.
Wealth tax by region at a glance
The state scale runs from 0.2 percent to 3.5 percent, but the exempt minimum and any rebate depend on your region.
The Solidarity Tax on Large Fortunes
Above 3 million euros a second layer appears. The Impuesto de Solidaridad de las Grandes Fortunas, usually shortened to ITSGF, is a purely state tax that Madrid cannot rebate away. Introduced in 2023 as a temporary measure, it has since been made permanent. It applies to net wealth over 3 million euros, the same 700,000 euro exempt minimum applies, and the rates run at roughly 1.7 percent on the band up to about 5.3 million, 2.1 percent up to about 10.7 million, and 3.5 percent above that. The clever part is the credit: any regional wealth tax you have already paid is deducted from what you owe here. That design is deliberate. It exists to catch high net worth residents of Madrid and Andalucía who, thanks to the 100 percent rebate, would otherwise pay nothing. The solidarity tax has its own return, Modelo 718.
Where non residents and second home owners stand
If you live abroad and own a holiday home in Spain, you are taxed on an obligación real basis, meaning only your Spanish situated assets count. The 700,000 euro minimum still applies to non residents, so a modestly priced coastal apartment rarely troubles the wealth tax. The 300,000 euro main home allowance, though, only helps residents, because it attaches to your habitual home in Spain. Higher value Spanish property, or several properties held together, is where non residents start to see a bill. This sits close to your other non resident obligations, including the inheritance and gift tax rules that decide what your heirs will pay and, if you hold cryptoassets abroad, the Modelo 721 declaration.
How wealth tax fits the rest of your Spanish tax life
Wealth tax rarely stands alone. New residents on the Beckham Law regime are treated as non residents for wealth tax, so they are only assessed on Spanish assets while the regime lasts, which changes the calculation entirely for a recent arrival. Anyone holding more than 50,000 euros of assets abroad already meets the Modelo 720 reporting threshold, and the same underlying valuations feed both filings. Thinking about these together, rather than one form at a time, is what keeps a Spanish tax year calm.
Wealth tax in Spain: common questions
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