Wealth Tax in Spain 2026
Protect your assets and avoid overpaying as a resident or non-resident in Spain
Spanish Wealth Tax is an annual tax on the net value of assets held on 31 December. If you own property, investments, company shares, bank accounts, valuable assets or cross-order wealth connected to Spain, it is important to understand whether you are liable, which assets must be included, which exemptions apply and how your autonomous community affects the final tax bill.
Spanish tax residents may be taxed on worldwide assets, while non-residents are generally taxed only on Spanish assets and rights. In 2026, the state tax-free allowance is €700,000, with up to €300,000 exempt for a main home, although regional rules can change the final result.
Pellicer & Heredia helps international clients calculate, file and plan their Spanish Wealth Tax position.
Reviewed by Ignacio Pellicer Molla, International Tax Lawyer at Pellicer & Heredia Abogados
- Bar Association no. 5918
- Languages: English, Spanish and Italian
- Last updated: Jun 2026
Do you live in Spain and wonder if you have to pay Wealth Tax?
Key facts about Spanish Wealth Tax
Tax name
Spanish Wealth Tax
Taxable date
31 December of each year
Main tax form
Form 714
Filing period for the 2025 tax year
8 April to 30 June 2026; direct debit generally until 25 June 2026
State tax-free allowance
€700,000, unless the autonomous community has approved a different allowance
Main home exemption
Up to €300,000 for the habitual residence of a Spanish tax resident
Residents
Potentially taxed on worldwide net wealth
Non-residents
Generally taxed only on assets and rights located in Spain or exercisable in Spain
Mandatory filing triggers
Tax payable after deductions/bonifications, or gross assets and rights above €2 million
Solidarity Tax
A separate state tax on large estates worth over €3 million, which is declared using Form 718 where applicable.
Professional review recommended when
You hold property in Spain, assets abroad, company shares, trusts, pensions, crypto, art or investments across several jurisdictions
Who has to pay Wealth Tax in Spain?
Spanish tax residents
If you are tax resident in Spain, you may have to include your worldwide assets in your Spanish Wealth Tax calculation. This can include real estate in Spain and abroad, bank deposits, shares, investment portfolios, cryptoassets, life insurance, certain company interests, art, jewellery, boats, vehicles and other assets with economic value. Debts and encumbrances directly linked to those assets may reduce the taxable base when properly documented.
Spanish residents can usually apply the state tax-free allowance of €700,000, unless their autonomous community has approved a different amount. They may also be able to apply the exemption for their habitual residence, capped at €300,000 per taxpayer. The final amount payable depends on regional thresholds, progressive rates, exemptions, deductions and bonifications.
Non-residents with assets in Spain
If you are not tax resident in Spain, you are generally taxed only on assets and rights located in Spain, or exercisable in Spain. This commonly affects foreign owners of Spanish property, especially where the net value of Spanish real estate, bank accounts or other Spanish assets is high. Non-residents can generally apply the €700,000 state minimum exemption, but must review the rules applicable to the region where the Spanish assets are located.
Non-residents often underestimate Wealth Tax because they assume that owning one property is not enough to trigger a filing obligation. However, filing may be required if the tax return results in tax payable after deductions and bonifications, or if the gross value of Spanish assets and rights exceeds €2 million, even if the final tax due is low or nil.
How is Wealth Tax calculated in Spain?
Step 1: confirm your tax residence
Step 2: identify taxable assets and deductible debts
Step 3: apply exemptions and regional rules
Step 4: check whether Form 714 and Form 718 are required
Wealth tax by autonomous community in 2025
Madrid
€700,000
Regional/state scale
Broad wealth tax bonification may apply, but transitional rules and the Solidarity Tax can neutralise the benefit for large fortunes.
Andalusia
€700,000
Regional/state scale
Broad ordinary wealth tax bonification; Solidarity Tax review still needed above €3 million.
Murcia
€700,000
Regional/state scale
Broad ordinary wealth tax bonification; large estates still require ITSGF analysis.
Valencia
€500,000
Up to 3.5%
Active wealth tax region. Critical for Costa Blanca residents and property owners.
Catalonia
€500,000
Up to 3.48%
Active wealth tax region with lower threshold than the state default.
Balearic Islands
€700,000
Up to 3.45%
Relevant for high-value property owners and international residents.
Canary Islands
€700,000
Up to 3.5%
Active regime; personal and asset location analysis required.
Aragon
€400,000
Up to 3.5%
One of the lowest thresholds; careful review needed for residents.
Galicia
€700,000
Up to 3.5%
Partial bonification can apply, subject to current regional rules.
Basque Country and Navarre
Foral rules
Foral rules
Regímenes forales separados. Estos casos requieren un análisis específico.
Madrid
€700,000
Regional/state scale
Broad wealth tax bonification may apply, but transitional rules and the Solidarity Tax can neutralise the benefit for large fortunes.
Andalusia
€700,000
Regional/state scale
Broad ordinary wealth tax bonification; Solidarity Tax review still needed above €3 million.
Murcia
€700,000
Regional/state scale
Broad ordinary wealth tax bonification; large estates still require ITSGF analysis.
Valencia
€500,000
Up to 3.5%
A region where wealth tax is levied. This is particularly important for residents and property owners on the Costa Blanca.
Catalonia
€500,000
Up to 3.48%
Active wealth tax region with lower threshold than the state default.
Balearic Islands
€700,000
Up to 3.45%
Relevant for owners of high-value properties and global residents.
Canary Islands
€700,000
Up to 3.5%
Active regime; personal and asset location analysis required.
Aragon
€400,000
Up to 3.5%
One of the lowest tax-free allowances; residents should carefully review their circumstances.
Galicia
€700,000
Up to 3.5%
Partial bonification can apply, subject to current regional rules.
Basque Country and Navarre
Foral rules
Foral rules
Regímenes forales separados. Estos casos requieren un análisis específico.
Solidarity Tax for large fortunes in Spain
The Impuesto Temporal de Solidaridad de las Grandes Fortunas, commonly referred to in English as the Solidarity Tax on Large Fortunes, is a state tax that complements Spanish Wealth Tax. It applies to individuals with net wealth above €3 million and is particularly relevant in regions where ordinary wealth tax is partially or fully bonified.
The tax is calculated using a progressive scale and the wealth tax effectively paid can be deducted to avoid double taxation on the same wealth. For high-net-worth residents or non-residents with significant Spanish assets, the Solidarity Tax can be the decisive reason to obtain personalised tax advice before moving assets, buying property or changing tax residence.
Remaining base
Marginal rate
Up to €3,000,000
€0
€3,000,000
0%
0%
€0
€2,347,998.03
1,7 %
From €5,347,998.03
€39,915.97
€5,347,998.03
2,1 %
Above €10,695,996.06
€152,223.93
Onwards
3,5 %
Remaining base
Marginal rate
Up to €3,000,000
€0
€3,000,000
0%
0%
€0
€2,347,998.03
1,7 %
From €5,347,998.03
€39,915.97
€5,347,998.03
2,1 %
Above €10,695,996.06
€152,223.93
Onwards
3,5 %
Assets included and common exemptions
Spanish and foreign real estate
Real estate located in Spain or abroad may be included in the taxable base. Spanish tax residents may benefit from a habitual residence exemption of up to €300,000 when the legal requirements are met.
Bank accounts, deposits and investment portfolios
Cash balances, deposits, listed securities, investment funds and similar financial assets are normally reviewed. Household contents are generally excluded, except for certain luxury or collectible assets.
Company shares and business interests
Shares in companies, business holdings and professional activity interests may be included. In some cases, family business or professional activity exemptions may apply if strict requirements are met.
Life insurance, annuities and certain financial products
Some life insurance policies, annuities and long-term financial products may have specific treatment. Pension rights may also require a case-by-case analysis.
Jewellery, art, antiques, boats, vehicles and other valuable assets
High-value personal assets may be included depending on their nature and value. Author-owned intellectual property rights may be exempt in specific circumstances.
Cryptoassets and digital assets
Cryptoassets and other digital assets should be reviewed carefully. Their valuation and reporting should be coordinated with income tax and foreign asset reporting obligations.
Common mistakes expats make with Spanish wealth tax
Many international clients only discover Spanish wealth tax after buying property, becoming tax resident or receiving a notice from the tax authorities. The most common mistakes are preventable when the tax position is reviewed before the transaction or relocation takes place.
- Assuming that non-residents never pay wealth tax. Non-residents can be liable on Spanish assets and rights.
- Looking only at net tax due and ignoring the €2 million gross asset filing trigger.
- Using purchase price instead of the correct valuation rule for Spanish property.
- Ignoring the autonomous community where the taxpayer is resident or where the asset is located.
- Assuming Madrid, Andalusia or Murcia automatically means no exposure when the Solidarity Tax may apply.
- Failing to coordinate wealth tax with Form 720, income tax, non-resident tax, inheritance planning or Beckham Law.
- Treating US 401(k), IRA, Canadian RRSP, trusts or company structures as automatically exempt without legal review.
- Filing late or without the documentation needed to support debts, mortgages and ownership percentages.
Wealth tax planning for US, Canadian, Dutch and European expats
How Pellicer & Heredia can help you with the Spanish wealth tax?
- Confirm whether you are liable as a resident or non-resident.
- Calculate your taxable net wealth and identify deductible debts.
- Review the applicable autonomous community rules and possible bonifications.
- Assess whether the Solidarity Tax applies above €3 million.
- Prepare and file Form 714 and, where required, Form 718.
- Coordinate wealth tax with Form 720, income tax, Beckham Law, non-resident tax and estate planning.
- Design lawful tax planning strategies before relocation, property purchase or asset restructuring.
Frequently Asked Questions
Do non-residents pay Wealth Tax in Spain?
Yes. Non-residents can be liable for Spanish wealth tax if they own assets or rights located in Spain, such as real estate, bank accounts or certain investments. They are generally taxed only on Spanish assets, not on worldwide wealth. A €700,000 state minimum exemption may apply, but the final result depends on the asset value, ownership, debts, regional rules and whether the return results in tax payable or a filing obligation.
How much wealth tax do I pay if I own a €2 million property in Spain?
The answer depends on whether you are resident or non-resident, the property location, ownership percentage, debts, the applicable regional rules and any available exemptions. A non-resident owning a Spanish property may generally deduct qualifying debts linked to that property and apply the minimum exemption, but a formal calculation is needed. If gross Spanish assets exceed €2 million, filing can be required even where the final tax due is low.
Is wealth tax the same as property tax or IBI?
No. IBI is a local property tax charged by the town hall on real estate ownership. Wealth Tax is a broader personal tax on net wealth and can include real estate, investments, bank accounts, company shares, art, life insurance and other assets. A person may pay IBI on a Spanish property and also have a Wealth Tax filing obligation if the value of their assets exceeds the relevant thresholds.
Do married couples file Wealth Tax jointly in Spain?
No. Wealth Tax is an individual tax. Each spouse or co-owner must calculate and file their own position based on their ownership share of assets and debts. For jointly owned property, each person is usually assessed on their percentage of ownership. This can affect whether each spouse benefits separately from exemptions and whether one or both spouses have a filing obligation.
Is my US 401(k), IRA or Canadian RRSP subject to Spanish Wealth Tax?
Foreign retirement accounts can be complex under Spanish tax rules. The answer depends on the legal nature of the account, the taxpayer’s residence status, access rights, valuation and applicable treaty considerations. US 401(k), IRA and Canadian RRSP structures should not be treated as automatically exempt without a tax review. Spanish residents with foreign retirement assets should coordinate Wealth Tax, income tax, Form 720 and estate planning before filing.
Are art, antiques and collectibles included in Spanish Wealth Tax?
They can be. Valuable art, antiques, jewellery, boats, classic cars and other collectible assets may need to be included when they have economic value and are not covered by a specific exemption. Household contents are generally treated differently, but high-value collections require careful documentation and valuation. International clients should also consider insurance values, ownership records and inheritance planning when these assets are located in Spain or owned by a Spanish tax resident.
Are cryptoassets included in Spanish Wealth Tax?
Cryptoassets may need to be considered for Spanish Wealth Tax if the taxpayer is Spanish tax resident or if the assets have a Spanish connection under the applicable rules. Valuation, custody, exchange location, reporting obligations and interaction with income tax can be complex. Spanish tax residents with cryptoassets should also review foreign asset reporting and supporting evidence for year-end values.
Can I deduct my mortgage from Spanish Wealth Tax?
A mortgage or loan may be deductible when it is directly linked to the taxable asset and properly documented. For non-residents, only debts connected with Spanish assets are generally relevant. The deductible amount can depend on ownership percentage, outstanding balance, asset location and the legal structure of the debt. Informal family loans or undocumented liabilities may not reduce the taxable base.
What is the difference between Wealth Tax and the Solidarity Tax?
Wealth Tax is a regionalised tax declared through Form 714. The Solidarity Tax on Large Fortunes is a state tax declared through Form 718 and generally affects net wealth above €3 million. It was created as a complementary tax, especially relevant where autonomous communities have reduced or bonified Wealth Tax. Wealth Tax effectively paid can be deducted when calculating the Solidarity Tax to avoid double taxation on the same wealth.
Does the Solidarity Tax apply to non-residents?
It can. Non-residents who are subject to Spanish Wealth Tax rules may also need to review the Solidarity Tax if their net taxable wealth linked to Spain exceeds the relevant threshold. The analysis is technical because it depends on the location and nature of assets, applicable deductions, international treaties and the interaction with Wealth Tax already paid. High-value property owners should obtain advice before assuming that no additional tax applies.
Does Beckham Law protect me from Spanish Wealth Tax?
The Beckham Law regime can limit the scope of Wealth Tax for qualifying individuals, as they are generally taxed on Spanish-located assets rather than worldwide assets during the special regime. However, the regime has conditions, deadlines and limits, and it does not remove all Spanish tax obligations. High-income executives and digital nomads should review Beckham Law, Wealth Tax, the Solidarity Tax and foreign asset reporting together before relocating.
Madrid vs Valencia Wealth Tax: how big is the difference?
The difference can be significant. Some regions have broad bonifications or more favourable rules, while Valencia has traditionally been an active Wealth Tax region with a lower tax-free threshold than the state default. However, the Solidarity Tax can reduce the practical advantage of moving to a highly bonified region for large fortunes. The right comparison requires a full calculation using residence, assets, debts, exemptions and regional rules.
What is the Wealth Tax deadline in Spain and which form do I use?
Spanish Wealth Tax is declared through Form 714. For the 2025 tax year, the official filing period runs from 8 April to 30 June 2026, with an earlier deadline for direct debit payment. The tax is based on assets held on 31 December. The Solidarity Tax, when applicable, is declared through Form 718, generally in July of the following year. Deadlines should be checked every campaign.
What happens if I miss the Wealth Tax filing deadline?
Late filing can lead to surcharges, interest and potential penalties, especially where tax was payable or information was incomplete. The risk increases if the missed return is connected with other obligations such as Form 720, income tax, non-resident tax or the Solidarity Tax. If you believe you should have filed in a previous year, it is advisable to obtain professional advice before submitting a corrective or late return.
Do I need to file Form 720 as well as Wealth Tax?
Possibly. Form 720 is an informative declaration for Spanish tax residents with certain foreign assets above reporting thresholds. Wealth Tax is a tax return that calculates net wealth and possible tax due. A Spanish resident with assets abroad may need both, but they serve different purposes and have different deadlines. The information declared should be consistent across Form 720, Wealth Tax and income tax.
Do I need a Spanish tax representative as a non-resident?
Non-residents from outside the EU or EEA may have representative obligations in certain tax situations, especially where they are liable for Spanish taxes and need to interact with the tax authorities. Even when a formal representative is not mandatory, appointing a Spanish tax lawyer or advisor can be practical for filing, notifications, documentation and deadlines. This is particularly important for high-value property owners and large estates.
Can I reduce Spanish Wealth Tax legally?
Yes, but planning must be done carefully and before the relevant tax date. Legal strategies may include reviewing ownership, debt structure, regional residence, business or professional activity exemptions, family business relief, investment structure and timing of asset transfers. Artificial arrangements can create tax risk, so planning should be aligned with residence, income tax, inheritance tax and international reporting obligations.
How does wealth tax interact with double taxation treaties?
Most double taxation treaties focus on income and capital gains, but some also contain provisions relevant to capital or wealth. The treaty position depends on the countries involved, asset type and residence status. A US, Canadian, Dutch or German client should not assume that a treaty automatically eliminates Spanish Wealth Tax. Treaty analysis should be combined with Spanish domestic rules and autonomous community legislation.