Spain is one of the few European countries that still taxes net wealth every year. The Spanish wealth tax (Impuesto sobre el Patrimonio) applies to the value of your assets on 31 December, minus debts, at rates of up to 3.5% under the national scale. Since 2022, a second levy, the Temporary Solidarity Tax on Large Fortunes, has acted as a national floor for the very wealthy.
What you actually pay depends heavily on where you live in Spain. The regions can change the allowance, the rates and the rebates, so a resident of Madrid and a resident of Valencia with the same assets can face very different bills. Non-residents with Spanish property are also in scope.
This guide explains how both taxes work as of October 2026, using the national law and the Spanish Ministry of Finance's 2026 summary of regional rules.
Key takeaways
- Spanish tax residents pay wealth tax on worldwide net assets. Non-residents pay only on assets located in Spain.
- The national scale runs from 0.2% to 3.5%, after a default allowance of €700,000 and an exemption of up to €300,000 for your main home.
- Regions set their own allowances and rebates. Madrid, Andalucía, La Rioja, Cantabria and Extremadura offer a 100% rebate, with limits for the largest fortunes.
- The solidarity tax charges 1.7% to 3.5% on taxable wealth above €3 million, after the €700,000 allowance, and gives credit for regional wealth tax paid.
- Income tax and wealth tax together are capped at 60% of the income tax base, but the wealth tax cannot be cut by more than 80%.
What the Spanish wealth tax is
The current wealth tax law dates from 1991 (Ley 19/1991). In 2008 the government switched it off through a full rebate. It was revived in 2011 as a temporary measure during the financial crisis, extended year by year, and made permanent from 2021, when the top national rate also rose from 2.5% to 3.5%.
It is a state tax, but the revenue goes to the regions (comunidades autónomas), which have the power to change the allowance, the rate scale and the rebates. The Basque Country and Navarra run their own separate (foral) wealth taxes. This guide covers the common regime that applies in the other 15 regions.
Who pays: residents and non-residents
The tax works on two bases:
- Personal obligation. Spanish tax residents are taxed on all their net assets, wherever they are in the world. Residence is usually decided under the income tax rules, including the 183-day test and the center of economic interests. Our guide to tax residency ties explains how such tests work in general.
- Real obligation. Non-residents are taxed only on assets located in Spain, such as Spanish property, Spanish bank accounts and shares in Spanish companies. Since 2022 this also covers shares in companies, Spanish or foreign, whose assets consist mainly of Spanish real estate.
Non-residents have the right to apply the rules of the region where most of their Spanish assets are located, including its rebates. People who move abroad can also choose to remain taxed on the personal obligation basis.
People taxed under the special regime for inbound workers, often called the Beckham Law, pay wealth tax only on their Spanish assets for as long as the regime applies. See our guide to Spain's Beckham Law for the income tax side.
The national rates and allowances
If a region has not approved its own scale, the national scale in the law applies to the taxable base, which is net wealth after exemptions and the allowance.
| Taxable base (€) | Marginal rate |
|---|---|
| Up to 167,129.45 | 0.2% |
| 167,129.45 to 334,252.88 | 0.3% |
| 334,252.88 to 668,499.75 | 0.5% |
| 668,499.75 to 1,336,999.51 | 0.9% |
| 1,336,999.51 to 2,673,999.01 | 1.3% |
| 2,673,999.01 to 5,347,998.03 | 1.7% |
| 5,347,998.03 to 10,695,996.06 | 2.1% |
| Above 10,695,996.06 | 3.5% |
Before the rates apply, three reliefs reduce the base:
- The allowance (mínimo exento): €700,000 per person by default, which regions may raise or lower.
- Main home: up to €300,000 of the value of your main residence is exempt.
- Family business holdings: shares in an operating company are exempt if you own at least 5% (or 20% with close family), you carry out management functions, and that pay makes up more than half of your earned income. Holding companies that mainly manage assets do not qualify.
You must file a return if you owe tax, or if the gross value of your assets exceeds €2 million, even when no tax is due. The return covers each spouse separately; Spain has no joint wealth tax return.
How assets are valued
The law sets a valuation rule for each type of asset. The main ones are:
| Asset | General valuation rule |
|---|---|
| Real estate | The highest of the cadastral value, the value set by the tax authority for other taxes, or the purchase price |
| Bank accounts | The balance on 31 December, or the average balance for the last quarter if that is higher |
| Listed shares | The average trading value for the fourth quarter |
| Investment funds | The net asset value on 31 December |
| Unlisted shares | Generally the book value from the last approved balance sheet |
| Life insurance | The surrender value on 31 December |
Debts can be deducted when they relate to taxable assets, such as a mortgage on a taxable property. The rules on valuation are detailed, and disputes are common, so families with complex holdings usually work with a Spanish adviser.
The 60% combined cap
Spain limits the overall burden on people whose wealth is high compared with their income. The income tax and wealth tax due cannot together exceed 60% of the income tax base. If they do, the wealth tax is reduced, but never by more than 80%. So a person with large assets and little income still pays at least 20% of the calculated wealth tax.
In late 2025 Spain's Supreme Court ruled that this cap must also be available to non-residents, and the tax authority adapted its forms for the 2025 tax year. The same approach has been extended to the solidarity tax.
Regional differences in 2026
The table below summarizes the main regional choices for 2026, based on the Ministry of Finance's Tributación Autonómica 2026 report, updated in September 2026.
| Region | Allowance | General rebate | Notes |
|---|---|---|---|
| Madrid | €700,000 | 100% | Rebate is limited for those liable to the solidarity tax |
| Andalucía | €700,000 | 100% (since 2022) | Same limit as Madrid |
| La Rioja | €700,000 | 100% (since 2025) | Same limit as Madrid |
| Cantabria | €700,000 | 100% (since 2024) | Rebate does not apply above €3 million after the allowance |
| Extremadura | €500,000 | 100% (since 2023) | Own higher rate scale |
| Galicia | €700,000 | 50% | Rebate reduced by any solidarity tax due |
| Murcia | €700,000 | Linked to the solidarity tax | Wealth tax cut to the amount of any solidarity tax due |
| Catalonia | €500,000 | None | Own scale, with a 3.48% band above €20 million |
| Valencia | €2,000,000 | None | Own scale, higher than the national one |
| Balearic Islands | €3,000,000 | None | Own scale |
| Aragón, Asturias, Canarias, Castilla y León, Castilla-La Mancha | €700,000 | None | National or own scale |
The "limit" in Madrid, Andalucía and La Rioja, and the similar rebate in Murcia, works like this. While the solidarity tax exists, these regions charge their wealth tax only up to the amount the person would otherwise owe in solidarity tax. People below the solidarity tax threshold still pay nothing. Those above it pay roughly the same total as elsewhere, but to the region rather than to the central state.
Regional rules change often, sometimes every year, so the figures above are a snapshot for the 2026 tax year.
The solidarity tax on large fortunes
The Temporary Solidarity Tax on Large Fortunes (ITSGF) was created by Ley 38/2022. Its stated aim was to set a national minimum and limit the effect of regional rebates. It applies to the same people as the wealth tax, residents and non-residents alike, in all regions except the foral territories.
Its main features are:
- the same €700,000 allowance and the same exemptions as the wealth tax;
- a 0% rate on the first €3 million of the taxable base;
- 1.7% from €3 million to €5,347,998.03, 2.1% up to €10,695,996.06, and 3.5% above that;
- a full credit for regional wealth tax actually paid for the same year;
- the same 60% combined cap, with the same 80% maximum reduction.
In practice, the tax starts to bite on net wealth above about €3.7 million, and higher for people who can use the main home exemption. It mainly affects residents of regions with large rebates. In a region like Catalonia, where the wealth tax is already paid in full, the credit usually cancels most or all of it.
The tax was first set for 2022 and 2023. A decree-law in December 2023 extended it until wealth taxation is reviewed as part of a reform of regional financing. The Ministry's September 2026 update still lists it as in force. Spain's Constitutional Court upheld the tax in 2023.
Filing and deadlines
Wealth tax is filed on Form 714, online, in the same period as the income tax return. For the 2025 tax year the window ran from 8 April to 30 June 2026. The solidarity tax is filed separately on Form 718, with a filing period that starts on 1 July. Late filing and underpayment lead to surcharges and penalties under Spain's general tax law.
Wealth tax and leaving Spain
Wealth tax is only one of the levies wealthy residents weigh. Spain also has an exit tax on unrealized gains in shares for people who leave after being resident for at least 10 of the last 15 years, if their holdings exceed €4 million in total or €1 million in a company where they own more than 25%. Our list of countries with exit taxes compares it with other systems.
Spain is not alone in debating wealth taxes. France is discussing a shift in its own model, covered in France's wealth tax debate, while several European countries have no annual wealth tax at all. Our overview of low-tax countries in Europe shows how the systems compare.
Frequently asked questions
Do non-residents pay wealth tax in Spain?
Yes, on assets located in Spain, such as property and Spanish bank accounts. They can use the rules of the region where most of those assets are located, and since the 2025 Supreme Court rulings they can also benefit from the 60% combined cap.
Is there wealth tax in Madrid?
The tax technically applies, but Madrid gives a 100% rebate. While the solidarity tax exists, people with very large fortunes pay Madrid wealth tax up to the amount they would otherwise owe in solidarity tax, so their total does not fall to zero.
At what level of wealth does Spanish wealth tax start?
It depends on the region. Under the default rules, tax applies to net wealth above €700,000 per person, after up to €300,000 of main home value is exempted. Catalonia and Extremadura start at €500,000, Valencia at €2 million and the Balearic Islands at €3 million.
Is the solidarity tax permanent?
It is called temporary, but it has been extended without an end date until regional financing is reformed. It remains in force for the 2026 tax year.
Do I pay wealth tax under the Beckham Law?
People taxed under the special inbound worker regime pay wealth tax only on their Spanish assets while the regime applies, not on their worldwide wealth.
Important: This article is general information, not tax, legal or financial advice. Rules change often and depend on your personal circumstances. Speak with a qualified professional in each relevant country before you act.