Does Spain have a wealth tax? Yes. Wealth tax in Spain is charged on what you own on December 31, not on what you earn, and the state scale runs from 0.2% to 3.5%. But almost nobody pays that scale as is. Each of Spain’s regions can change the tax-free allowance, the brackets and the tax relief, so the same wealth can cost nothing in one region and more than €12,000 in another.
There’s a second point that surprises people every year: you may have to file even if you owe nothing, once your assets are worth more than €2,000,000. And a cap linked to your income tax can cut the bill by up to 80%.
In this guide, you’ll see who pays, the state and regional rates, a worked example and how to file Form 714.
Do you want a expert consultation? Contact us and we will help you.
At a Glance
- What it taxes: the net wealth of individuals (assets minus debts) on December 31.
- How much: wealth tax in Spain runs from 0.2% to 3.5% on what exceeds the tax-free allowance, generally €700,000. Your main home is exempt up to €300,000.
- Who files: anyone with tax to pay or assets worth more than €2,000,000, using Form 714 during the income tax season.
- Foreigners: non-residents and expats under the Beckham Law are taxed only on their assets in Spain.
What Is the Wealth Tax in Spain (and What It Isn’t)
The Wealth Tax (Impuesto sobre el Patrimonio) is a Spanish state tax, managed by the regions, charged every year on the net wealth of individuals. In other words, the value of their assets and rights on December 31, minus deductible debts. It’s governed by Law 19/1991 and filed on Form 714.
It doesn’t tax what you earn, which is Personal Income Tax (IRPF), or what you inherit or receive as a gift. It isn’t the local property tax (IBI) either, and companies don’t pay it. And it shouldn’t be confused with the Solidarity Tax on Large Fortunes, a separate state tax that only applies to net wealth above €3,700,000.
Who Pays Wealth Tax in Spain: Residents, Non-Residents and Beckham Law Expats
Individuals pay it: if you’re a Spanish tax resident, on your worldwide assets; if you’re not, only on what you own in Spain.
If you’re a tax resident in Spain, an apartment in Chicago or a brokerage account in New York counts just like a bank account in Madrid. If you aren’t, only assets located in Spain and rights exercised here are taxed.
One detail worth knowing early: since late 2022, shares in unlisted companies whose assets are at least 50% Spanish real estate count as assets located in Spain. Holding a Spanish home through a foreign company no longer takes it out of the tax.
Expats under the special impatriate regime have their own rule. If you moved to Spain under the Beckham Law, you pay wealth tax only on your assets in Spain, even though you’re a resident for income tax purposes. For companies relocating executives with assets abroad, it’s worth reviewing before arrival, as part of employee relocation to Spain.
How Does Wealth Tax Apply to Non-Residents in Spain?
Non-residents are taxed on assets located in Spain and get the same €700,000 tax-free allowance as residents. They must file if they owe tax or if those assets are worth more than €2,000,000.
Since July 11, 2021, any non-resident, not just EU residents, can apply the rules of the region where most of their Spanish assets are located. For example, an American living in Miami with an apartment in Madrid and a cheaper one in Málaga can use the Madrid rules.
There’s also an important new development: in October and November 2025, Spain’s Supreme Court ruled that the joint cap with income tax also protects non-residents. The Form 714 for the 2025 tax year already reflects it. You’ll find the rest of your obligations in our guide to taxes in Spain for non-residents.
Spain Wealth Tax Rates: The State Scale and the Regional Table
The state scale runs from 0.2% to 3.5% in eight brackets, but it only applies as is in regions without their own scale.
It applies to the net taxable base, which is your net wealth minus the tax-free allowance. This is the scale in Article 30 of Law 19/1991 for the 2025 tax year:
| Net taxable base from (€) | Tax on that amount (€) | Next band up to (€) | Rate |
|---|---|---|---|
| 0 | 0 | 167,129.45 | 0.2% |
| 167,129.45 | 334.26 | 167,123.43 | 0.3% |
| 334,252.88 | 835.63 | 334,246.87 | 0.5% |
| 668,499.75 | 2,506.86 | 668,499.76 | 0.9% |
| 1,336,999.51 | 8,523.36 | 1,336,999.50 | 1.3% |
| 2,673,999.01 | 25,904.35 | 2,673,999.02 | 1.7% |
| 5,347,998.03 | 71,362.33 | 5,347,998.03 | 2.1% |
| 10,695,996.06 | 183,670.29 | and above | 3.5% |
Spain Wealth Tax Threshold: When Do You Start Paying?
As a general rule, once your net wealth passes €700,000, not counting your main home up to €300,000. Put simply, if your home is worth €300,000 or less, you don’t pay until your other assets, minus debts, exceed €700,000.
That’s the state allowance, and several regions set their own: €500,000 in Catalonia and Extremadura, €1,000,000 in Valencia and €3,000,000 in the Balearic Islands.
Spain Wealth Tax by Region
This is the picture for the 2025 tax year, filed in 2026, according to the Spanish Tax Agency’s wealth tax manual:
| Region | Tax-free allowance (€) | Scale | General tax relief |
|---|---|---|---|
| Andalusia | 700,000 | 0.2%-3.5% | 100%, replaced by the difference with the Solidarity Tax (*) |
| Aragon | 700,000 | State | None |
| Asturias | 700,000 | 0.22%-3% | None |
| Balearic Islands | 3,000,000 | 0.28%-3.45% | None |
| Canary Islands | 700,000 | State | None |
| Cantabria | 700,000 | 0.24%-3.03% | 100% up to a €3,000,000 net taxable base; above that, the difference (*) |
| Castilla-La Mancha | 700,000 | State | None |
| Castilla y León | 700,000 | State | None |
| Catalonia | 500,000 | 0.21%-3.48% | None |
| Extremadura | 500,000 | 0.30%-3.75% | 100% |
| Galicia | 700,000 | 0.2%-3.5% | 50%, reduced by any Solidarity Tax paid |
| Madrid | 700,000 | State | 100%, replaced by the difference with the Solidarity Tax (*) |
| Murcia | 700,000 | 0.2%-3.5% | Difference with the Solidarity Tax (*) |
| La Rioja | 700,000 | State | 100%, replaced by the difference with the Solidarity Tax (*) |
| Valencia | 1,000,000 | 0.25%-3.5% | None |
(*) While the Solidarity Tax on Large Fortunes exists, these regions only relieve the difference between the wealth tax and the Solidarity Tax. In practice, if you’re below the Solidarity Tax threshold, you still pay nothing. If you’re above it, you pay your region what you’d otherwise pay the central government.
Catalonia stands out: with one of the lowest allowances, it accounts for 94,875 of the 227,424 wealth tax filers for 2024, according to the Spanish Tax Agency. The Basque Country and Navarre have their own rules, with allowances of €550,000 in Navarre, €800,000 in Álava and Bizkaia and €700,000 in Gipuzkoa.
How Is Wealth Tax Calculated in Spain, Step by Step
You subtract exemptions and debts from the value of your assets, then apply the scale to whatever exceeds the tax-free allowance.
- Add up the value of your assets and rights on December 31.
- Subtract exempt assets, starting with your main home up to €300,000. The other exemptions are covered in the FAQ.
- Subtract deductible debts, such as the mortgage on a second home. Debts taken on to buy exempt assets aren’t deductible, or only for the non-exempt part.
- Apply your region’s tax-free allowance to get the net taxable base.
- Apply the scale, state or regional, to get the gross tax.
- Check the joint cap with income tax, which can cut the tax by up to 80%.
- Subtract tax relief and credits: regional relief, the credit for taxes paid abroad and the 75% relief in Ceuta and Melilla.
How Is Property Valued for Wealth Tax?
At the highest of three values: the cadastral value, the value set or checked by the tax authorities for other taxes, or the purchase price. That’s the key to wealth tax on property in Spain. Watch out for a common mistake: the cadastral value is usually the lowest, and using it out of habit for a recently bought home undervalues your return.
The cadastral reference value isn’t part of that rule. It only counts if it was used as the base for transfer tax or inheritance and gift tax on a transaction since 2022. Other assets have their own rules:
- Bank accounts: the higher of the December 31 balance and the average balance for the last quarter.
- Listed shares: the average market price for the fourth quarter.
- Life insurance: the surrender value on December 31.
The Spain Wealth Tax 60% Rule: The Joint Cap With Income Tax
Your income tax and wealth tax can’t add up to more than 60% of your income tax base. If they do, the wealth tax is reduced, by up to 80%.
For this calculation, gains on assets you’ve held for more than a year don’t count toward the income tax base. The wealth tax on assets that can’t generate income, such as jewelry or art, is left out too.
Here’s an example with numbers: an income tax base of €20,000, income tax of €3,500 and wealth tax of €9,342.37. The cap is €12,000, or 60% of €20,000. The total exceeds it by €842.37, so the wealth tax drops to €8,500. It could never go below €1,868.47, which is 20% of the tax.
A Worked Example: The Same Wealth in Three Regions
Under the 2025 rules, the same wealth pays nothing in Madrid, €9,342.37 in Castilla y León and €12,539.49 in Catalonia.
Take a single resident with these assets on December 31, 2025. Their main home is worth €600,000, and they own a €450,000 second home with €100,000 left on the mortgage. They also have €1,300,000 in funds and shares and €150,000 in bank accounts. We’ll assume their income is high enough that the 60% cap doesn’t apply.
| Item | Amount (€) |
|---|---|
| Assets and rights | 2,500,000 |
| Main home exemption | −300,000 |
| Deductible debts (second home mortgage) | −100,000 |
| Taxable base | 2,100,000 |
| Region | Net taxable base | Gross tax | Tax to pay |
|---|---|---|---|
| Madrid (allowance €700,000) | 1,400,000 | 9,342.37 | 0 |
| Castilla y León (allowance €700,000) | 1,400,000 | 9,342.37 | 9,342.37 |
| Catalonia (allowance €500,000) | 1,600,000 | 12,539.49 | 12,539.49 |
Under the state scale, the tax is €8,523.36 for the first full brackets plus 1.3% of the remaining €63,000.49. In Catalonia, a lower allowance and a slightly higher scale both push the bill up.
In Madrid, this person is below the Solidarity Tax threshold, so the relief covers the whole tax. But here’s the catch: they still have to file Form 714 even though they owe nothing, because their assets are worth more than €2,000,000.
Filing Wealth Tax in Spain: Who Files, Form 714 and Deadlines
You file a self-assessment on Form 714, online only, during the income tax season: in 2026, from April 8 to June 30.
You must file if you owe tax or, even if you don’t, if your assets are worth more than €2,000,000. The rule is the same for residents and non-residents. Here’s how:
- Gather your December 31 values: bank statements with the year-end and fourth-quarter average balances, investment statements and property values.
- Have your income tax return ready, because the joint cap uses its figures.
- Complete Form 714 on the Spanish Tax Agency’s official e-portal.
- Apply your region’s rules or, if you’re a non-resident, the rules that apply based on your assets.
- Choose how to pay: direct debit until June 25 or direct payment until June 30.
- Submit the return and keep the proof of filing.
Steps at a Glance
- Gather your asset values as of December 31.
- Have your income tax return ready.
- Complete Form 714 on the Tax Agency e-portal.
- Apply the right regional rules.
- Set up direct debit by June 25 or pay by June 30.
- Submit and keep the proof of filing.
If you’d rather hand it off, we handle it together with your personal tax returns in Spain, so your income tax and wealth tax figures match.
When Is Wealth Tax Paid?
When you file, in a single payment. Unlike income tax, it can’t be split into two installments, although you can ask the Spanish Tax Agency for a deferral or installment plan.
A calendar tip: the tax is assessed on December 31. If you want a change to count, such as selling, giving away an asset or paying off a debt, do it before that date.
Do you want a expert consultation? Contact us and we will help you.
Wealth Tax and the Solidarity Tax on Large Fortunes
The Solidarity Tax on Large Fortunes applies to net wealth above €3,700,000 and deducts the wealth tax you’ve already paid.
It was created by Law 38/2022 for two tax years, and Royal Decree-law 8/2023 extended it until Spain reviews how wealth is taxed. It uses the same €700,000 allowance but taxes nothing up to a €3,000,000 net taxable base. Above that, it charges 1.7%; from €5,347,998.03, 2.1%; and from €10,695,996.06, 3.5%.
Residents and non-residents both pay it, it has its own 60% cap and it’s filed on Form 718 in July. Here’s an example with numbers: with a €5,000,000 taxable base, wealth tax would be €53,546.37 and the Solidarity Tax €22,100. In Madrid, that person pays €22,100 to the region and nothing to the central government. In Castilla y León, they pay the €53,546.37 in wealth tax and nothing in Solidarity Tax, because the wealth tax paid already exceeds it.
Costly Mistakes With Wealth Tax in Spain
The mistakes that cost the most aren’t in the scale. They come from valuing assets wrong, forgetting to file or missing a cap.
- Not filing when you owe nothing: in Madrid or Andalusia, with assets over €2,000,000, you must file even if you don’t pay.
- Valuing a home at its cadastral value: the law requires the highest of three values.
- Using only the December 31 balance: the higher of that balance and the last-quarter average counts.
- Deducting the full mortgage on an expensive main home: only the share linked to the non-exempt value is deductible.
- Forgetting the 60% cap, especially with wealth that generates little income.
- Not comparing rules as a non-resident: the region where most of your assets are may be far cheaper.
- Leaving moves until January: the tax is assessed on December 31.
The rules on wealth tax in Spain for expats reward planning ahead. If your wealth is close to the thresholds, tax planning in Spain is best done before December, not in the middle of filing season.
Knowing the scale is only half the answer. The other half is valuing each asset correctly, applying the right rules and not missing any cap along the way. At ILLAY Legal, we review your wealth as of December 31, calculate the tax under the rules that apply to you and file Form 714. We do it through our wealth tax advisory service in Spain, 100% online and in your language. Tell us which region you live in, what you own and roughly what it’s worth, and we’ll tell you whether you need to file and how much you’d pay.
Frequently Asked Questions About Wealth Tax in Spain
What kind of assets are subject to Spanish wealth tax?
All your assets and rights: property, bank accounts, shares, funds, life insurance, vehicles, jewelry and art. Some are exempt. These include your main home up to €300,000, Spanish pension plan rights, household contents (excluding jewelry, vehicles and art), historic heritage assets and intellectual property still owned by its author. Shares in a family business are also exempt if three conditions are met. The company can’t be a passive holding company, you must own at least 5% (or 20% with your family), and your pay for managing it must exceed half of your employment and business income.
How does wealth tax in Spain work for a married couple?
Each spouse is taxed separately. Community property is split in half between them unless a different share can be proven. Each spouse files for their half and applies their own tax-free allowance and main home exemption. So a couple with €2,000,000 in joint net wealth, excluding their home, has €1,000,000 each, and each pays only on what exceeds their own allowance. Assets that belong to just one spouse, such as an inheritance, are declared in full by that spouse.
What happens if the owner dies before December 31?
No wealth tax is due for that year. The tax is assessed on December 31 and only applies to whoever owns the assets on that date. From then on, the assets count toward the heirs’ wealth, and they’ll need to check whether they exceed the allowance or the €2,000,000 filing threshold. The inheritance tax in Spain is a separate matter, with its own return and deadlines.
Will Spain abolish wealth tax?
No law abolishing it has been passed. The wealth tax remains in force, and the Solidarity Tax on Large Fortunes, created as temporary, was extended until Spain reviews how wealth is taxed. What has changed over the years is the regional picture. Some regions offer full relief below certain thresholds, while others, like Catalonia, set a lower allowance. Since regions can change their rules every year, it’s worth checking yours before each December 31.
What are the filing requirements for Spanish wealth tax for US taxpayers?
The same as for anyone else: what matters is tax residency, not citizenship. A US citizen living in Spain files on their worldwide assets, unless they’re under the Beckham Law, which limits the tax to Spanish assets. A US citizen living in the US files only if they owe tax on their Spanish assets or those assets exceed €2,000,000. In both cases, it’s Form 714, filed online by June 30. Non-residents only need a tax representative in certain cases, such as operating through a permanent establishment.
Are there specific trusts or structures to reduce Spanish wealth tax?
There are legal ways to reduce it, but not through structures that simply hide who owns the assets. Holding Spanish property through a foreign company doesn’t work when at least half of its assets are Spanish real estate. What does work is meeting the family business exemption, choosing the right regional rules as a non-resident, applying the 60% cap and planning gifts carefully, keeping in mind the gift tax in Spain. At ILLAY Legal, we review this 100% online and in your language, without promising results before seeing your numbers.
