If you own property, investments or savings in Spain, you may owe wealth tax even if you have never lived there. Spain's Impuesto sobre el Patrimonio (wealth tax) applies to non-residents too, but only on assets located in Spain, and the amount you actually pay depends heavily on which region those assets sit in. Someone with a 1.5 million euro villa in Madrid can pay nothing. The same villa in Catalonia can trigger a real bill.
This guide covers who pays wealth tax in Spain in 2026, the 700,000 euro threshold, how the rules differ by region, and the separate Solidarity Tax that catches large fortunes even where regional wealth tax is rebated to zero. It applies to UK and US readers equally, though a few post-Brexit details differ and are flagged below.
The Solidarity Tax on Large Fortunes, originally introduced as a temporary measure for 2023 and 2024, was made permanent from 2025 and continues to apply for the 2026 tax year. It is not going away.
Who Pays Wealth Tax in Spain
Wealth tax in Spain is charged on your net assets: what you own, minus what you owe against it. Two categories of people are liable.
- Residents pay wealth tax on their worldwide assets, wherever those assets are located.
- Non-residents pay wealth tax only on assets located in Spain: property, Spanish bank accounts, shares in Spanish companies and similar. A holiday home in Marbella counts. A UK pension or a US brokerage account does not.
The 700,000 euro general allowance applies to both groups. Residents also get an additional 300,000 euro exemption on their main home; non-residents do not, since the allowance is specifically for a habitual residence in Spain.
The 700,000 Euro Threshold and How the State Scale Works
Every taxpayer gets a 700,000 euro general allowance per person. Only net wealth above that figure is taxed, and the tax is calculated using a progressive scale: each portion of your wealth is taxed at the rate for that band, not your whole net wealth at the top rate.
| Net Taxable Wealth | Rate |
|---|---|
| Up to 167,129 | 0.2% |
| 167,129 to 334,253 | 0.3% |
| 334,253 to 668,500 | 0.5% |
| 668,500 to 1,337,000 | 0.9% |
| 1,337,000 to 2,674,000 | 1.3% |
| 2,674,000 to 5,348,000 | 1.7% |
| 5,348,000 to 10,696,000 | 2.1% |
| Above 10,696,000 | 3.5% |
This is the default state scale. Every autonomous community can vary it, and several vary it significantly, which is why where your Spanish assets sit matters as much as how much they are worth.
Married couples are assessed individually. Wealth tax is not calculated on a joint basis. Each spouse gets their own 700,000 euro allowance, so a couple can hold 1.4 million euros in Spanish assets before either of them owes anything, assuming ownership is split evenly.
Wealth Tax by Region: Where the 100% Rebate Applies
This is where the tax stops being uniform. Some regions cut the bill to zero. Others tax it in full, and one has a lower entry threshold than the state default.
| Region | Approach | Effective Result |
|---|---|---|
| Madrid | 100% rebate on the tax due | You must still file if you exceed the threshold, but nothing is paid, up to 3 million euros |
| Andalucia | 100% rebate since 2022 | Same effect as Madrid: filing required, zero paid, up to 3 million euros |
| Catalonia | No rebate; lower regional allowance reported at 500,000 euros for residents | Tax applies in full at rates up to 3.5%. This is the region with the highest effective wealth tax exposure |
| Valencia | No rebate; regional allowance raised to 1 million euros from the 2025 tax year | Tax applies above 1 million euros for residents, at rates up to 3.5% |
| Balearic Islands | No rebate; regional allowance raised to 3 million euros since 2024 | Most owners fall below the threshold and pay nothing. Non-residents with property on Mallorca can actively elect this allowance |
Note that the Valencia and Catalonia allowance figures above apply to residents of those regions. Non-residents generally default to the state 700,000 euro allowance, though a September 2025 ruling from Spain's central economic-administrative tribunal (TEAC) confirmed that non-EU residents, including UK, US, Canadian and Australian nationals, can elect to apply the rules of the autonomous community where the bulk of their Spanish assets are located instead. This can work in your favour, particularly for property on Mallorca under the Balearic allowance.
Madrid and Andalucia rebate the regional wealth tax to zero, but that rebate only removes the regional layer. Above 3 million euros of net wealth, the national Solidarity Tax on Large Fortunes steps in and taxes the difference, regardless of where in Spain your assets are held. Rebates protect mid-sized estates, not the largest ones.
Own property or assets across more than one region?A tax lawyer can confirm which region's rules actually apply to your Spanish assets and whether you can elect a more favourable allowance.
Find a Tax Lawyer ->The Solidarity Tax on Large Fortunes
The Impuesto de Solidaridad de las Grandes Fortunas (ITSGF) is a separate, national tax that exists specifically to stop high-net-worth individuals from avoiding wealth tax by holding assets in Madrid or Andalucia. It was introduced as a temporary measure in 2023, made permanent from 2025, and remains in force for 2026.
The ITSGF applies to net wealth above 3 million euros, after the same 700,000 euro exemption, which puts the effective entry point at roughly 3.7 million euros. Any regional wealth tax you have already paid is credited against what you owe under the ITSGF, so in practice it functions as a floor: if your region rebates wealth tax to zero, you pay the ITSGF rate in full instead.
3M to 5.35M
Applies to the portion of net wealth falling in this band, above the exempt amount.
5.35M to 10.7M
The middle band, applying to larger Spanish-based fortunes.
Above 10.7M
The top rate, matching the top rate of the standard state wealth tax scale.
The practical effect: if you were counting on Madrid or Andalucia's 100% rebate to shelter a large Spanish property portfolio, that shelter stops working once your net Spanish wealth passes roughly 3.7 million euros. Above that point, the ITSGF collects what the regional rebate gave up.
How This Plays Out for UK and US Expats
Wealth tax comes up most often for two groups: retirees on a Non-Lucrative Visa who have moved significant savings or property into Spain, and UK or US buyers who purchased a second home without realising ownership alone can create a filing obligation, regardless of how often they visit.
For UK nationals, Brexit is relevant here because the UK's exit from the EU removed the automatic access some EU nationals have to certain regional allowances. This is precisely the gap the September 2025 TEAC ruling addressed: UK non-residents, like their US, Canadian and Australian counterparts, can now actively elect a more favourable regional allowance where their Spanish assets justify it, rather than being confined to the state default.
For US nationals, there is no wealth tax equivalent at federal level, so this is often an entirely new filing obligation with no home-country parallel to compare it to. The US-Spain tax treaty does not eliminate Spanish wealth tax liability; it primarily addresses income tax and double taxation on income, not net wealth.
If you gave up a Golden Visa property, the wealth tax exposure did not disappear with it. Spain's Golden Visa route has been abolished, but anyone who bought Spanish property through it is still a non-resident owner of a Spanish asset, and that asset is still counted against the 700,000 euro threshold.
Filing Wealth Tax in Spain: The Basics
Wealth tax is assessed on your net wealth as it stands on the last day of the tax year. Property is valued at the higher of the cadastral value, the value assessed by the tax authority, or the purchase price.
For most non-residents this defaults to the state scale, but you may be able to elect a regional allowance if the bulk of your Spanish assets sit in a specific autonomous community.
This is the annual wealth tax return. It is filed the year after the tax year it covers, alongside the non-resident income tax return if you also owe that.
If your net Spanish wealth is above roughly 3.7 million euros, a separate Solidarity Tax filing may apply even if your regional wealth tax bill was rebated to zero.
When Do You Actually Need a Lawyer for Wealth Tax?
If your Spanish assets are clearly below 700,000 euros, wealth tax is not something you need to plan around. Below that figure there is no filing obligation and no tax due.
If your Spanish property and investments sit close to the 700,000 euro threshold, or you own assets across more than one autonomous community, working out which region's allowance applies and how your net wealth is calculated is not something to guess at. Debts linked directly to the asset, such as an outstanding mortgage, reduce your taxable base, but the rules on what counts are specific and getting the valuation wrong has consequences.
If your net Spanish wealth is approaching 3 million euros, a tax lawyer should confirm your ITSGF position before the filing deadline, since the regional rebate you were relying on may not apply once the solidarity tax is factored in. This is also the point where a lawyer with genuine cross-border expertise pays for itself: the interaction between your home country's tax rules and Spain's is not something to work out from a blog post.
Not sure if wealth tax applies to you?A Spanish tax lawyer can confirm your threshold, your regional position and whether the Solidarity Tax applies before the 30 June deadline.
Find a Tax Lawyer ->Frequently Asked Questions
Summary
Wealth tax in Spain is not a flat national rule. The 700,000 euro threshold is your starting point, but whether you actually pay anything depends on which region your Spanish assets sit in, and large fortunes above roughly 3.7 million euros face the Solidarity Tax regardless of regional rebates. Non-residents are only taxed on Spanish assets, but the filing obligation still applies once you cross the threshold, even if the final bill is zero.
If you are still weighing up where in Spain to buy or retire, the regional wealth tax position is worth checking alongside the other Spanish property taxes you will face as a foreign owner, and how they interact with Spanish inheritance law if the property will eventually pass to your family. Retirees applying on a Non-Lucrative Visa in particular should factor wealth tax into their financial planning before the move, not after. If any of the Spanish terms above are unfamiliar, our Spanish legal glossary explains them in plain English.
Get your wealth tax position confirmed before the June deadline.Search verified English-speaking tax lawyers in Spain by city and specialty.
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