Spain's Wealth Tax 2026: Rates, Exemptions & Regions

Complete guide to Spain's Impuesto sobre el Patrimonio and Solidarity Tax: thresholds, rates by region, exemptions, and Beckham Law implications for expats.

Spain is one of a handful of European countries that still levies an annual tax on individual net wealth. For expatriates who have built up significant assets — whether through property, investments, or business holdings — understanding the Impuesto sobre el Patrimonio (Wealth Tax) is essential. Since 2023, the picture has become even more complex with the introduction of the Impuesto Temporal de Solidaridad de las Grandes Fortunas (Solidarity Tax on Large Fortunes), which was made permanent in 2025 and now acts as a nationwide floor that no region can eliminate. This guide breaks down the thresholds, rates, regional variations, and special rules that apply to Beckham Law beneficiaries.

What Is the Wealth Tax and Who Pays It?

The Wealth Tax is a direct, personal tax levied on the net worldwide assets of individuals who are tax residents in Spain. Non-residents are also subject to it, but only on assets located within Spanish territory. The tax has existed since 1991, was briefly suspended between 2008 and 2011, and was reinstated in 2011 as a supposedly temporary measure during the financial crisis. More than a decade later, it remains firmly in place.

You are potentially liable for the Wealth Tax if, on 31 December of the tax year, the total net value of your assets exceeds the exempt minimum threshold established by your autonomous community — or EUR 700,000 under the default state rules. Assets include real estate, bank deposits, securities, insurance policies, vehicles, jewelry, art, and any other property with economic value. Debts and encumbrances are deducted to arrive at the net taxable base.

Key Exemptions and Deductions

Not everything you own is taxable. Several important exemptions apply:

• Primary residence (vivienda habitual): Up to EUR 300,000 of the assessed value of your main home is exempt. This is per taxpayer, so a married couple filing individually can each claim EUR 300,000 on their share.
• Household goods: Everyday furniture, clothing, and personal effects are excluded.
• Business assets: Assets tied to an active business or professional activity — including those of autónomos (self-employed workers) — may be exempt under certain conditions, provided the business constitutes the taxpayer's principal source of income.
• Intellectual property rights: Rights held by the original creator are exempt, though they become taxable if transferred.
• Pension plans: Contributions to qualified pension plans up to the maximum legal limits are exempt.
• Family business shares: Shares in family companies can be exempt if the taxpayer or a family member exercises management functions and the holding meets certain thresholds.

State-Level Tax Rates: The Default Scale

When an autonomous community has not established its own wealth tax rules, the state-level progressive scale applies. This is also the scale used for non-residents. The rates range from 0.2% on the first bracket up to 3.5% on wealth exceeding approximately EUR 10.7 million.

These rates apply after the EUR 700,000 personal allowance and the EUR 300,000 primary residence exemption. So a single individual would only begin paying wealth tax on net assets exceeding EUR 1,000,000 (EUR 700,000 + EUR 300,000 home exemption) if they own a qualifying primary residence.

How the Calculation Works

Suppose you are a tax resident with net worldwide assets of EUR 2,500,000 on 31 December, including a primary residence valued at EUR 400,000. Your calculation would proceed as follows:

1. Gross assets: EUR 2,500,000
2. Primary residence exemption: EUR 300,000 (the maximum, even though your home is worth EUR 400,000)
3. Personal allowance: EUR 700,000
4. Taxable base: EUR 1,500,000
5. Tax due: Apply the progressive rates above to EUR 1,500,000 = approximately EUR 5,765

The effective rate on the total taxable base in this example is roughly 0.38%, well below the top marginal rate. Wealth tax becomes more painful at higher levels of wealth, particularly in regions that apply surcharges.

Regional Differences: Where You Live Matters Enormously

One of the most distinctive features of Spanish taxation is the degree of fiscal autonomy granted to the autonomous communities. Each region has the power to modify wealth tax rates, set its own exempt minimum threshold, and even grant full or partial bonifications (reductions). This creates dramatic disparities in the amount of wealth tax owed by residents of different communities with identical asset portfolios.

Madrid: The Tax Haven That Is Not Quite a Haven Anymore

For years, Madrid's 100% bonification on wealth tax made it the region of choice for high-net-worth individuals seeking to minimize their Spanish tax burden. Residents of Madrid effectively paid zero wealth tax. However, the introduction of the Solidarity Tax in 2023 changed the landscape. Because the Solidarity Tax is a state-level tax that cannot be eliminated by regional bonifications, Madrid residents with net assets above EUR 3 million now face a federal wealth tax in all but name. The Solidarity Tax was designed specifically to close this loophole.

Catalonia: The Most Expensive Region

Catalonia applies some of the highest effective wealth tax rates in Spain. The exempt minimum is only EUR 500,000 (compared to the EUR 700,000 state default), and the top marginal rate reaches 2.75%. For a taxpayer with EUR 5 million in net assets, the difference between living in Madrid (pre-Solidarity Tax) and Catalonia can amount to tens of thousands of euros annually. Even with the Solidarity Tax now in play, Catalonia's regional wealth tax typically exceeds what Madrid residents pay under the Solidarity Tax alone, meaning Catalan residents bear a heavier total burden.

Valencia: Recent Reforms

The Valencian Community has undergone significant changes. Under the previous left-leaning government, Valencia imposed the highest wealth tax rate in Spain at 3.75%. Since the change in regional government, the exempt minimum has been raised to EUR 1,000,000 per individual for the 2025 tax year onward, and the primary residence exemption remains at EUR 300,000. This provides meaningful relief compared to the old regime, though the top marginal rate remains steep for very large fortunes.

Andalusia: Full Bonification

Following Madrid's lead, Andalusia introduced a 100% bonification on wealth tax in 2022 as part of a broader strategy to attract investment and high-net-worth residents. As with Madrid, the Solidarity Tax still applies to Andalusian residents with assets above EUR 3 million.

The Solidarity Tax on Large Fortunes

The Impuesto Temporal de Solidaridad de las Grandes Fortunas was introduced by Ley 38/2022, de 27 de diciembre, originally as a temporary two-year measure for the 2022 and 2023 tax years. In 2025, the Spanish government made it permanent through amendments included in the annual budget legislation. The tax applies throughout Spain with no regional variations, and it cannot be bonified or reduced by autonomous communities.

Solidarity Tax Rates

The Solidarity Tax uses three progressive brackets:

• 1.7% on net assets between EUR 3,000,000 and EUR 5,347,998
• 2.1% on net assets between EUR 5,347,998 and EUR 10,695,996
• 3.5% on net assets exceeding EUR 10,695,996

Crucially, any regional Wealth Tax already paid is fully deductible from the Solidarity Tax liability. This means that taxpayers in regions like Catalonia or the Balearic Islands — where the regional wealth tax is substantial — will typically owe little or no additional Solidarity Tax. The tax primarily affects residents of regions that bonify wealth tax (Madrid, Andalusia, Cantabria, Extremadura, Murcia, and La Rioja), because these taxpayers have no regional wealth tax to offset against the Solidarity Tax.

Beckham Law and Wealth Tax: Spanish Assets Only

One of the most significant advantages of the Beckham Law — officially the Régimen Especial de Trabajadores Desplazados under Article 93 of Ley 35/2006, expanded by the Startup Law (Ley 28/2022) — extends beyond income tax. Taxpayers under this regime are treated as non-residents for wealth tax purposes. This means:

• Only assets located in Spain are subject to wealth tax. Foreign property, overseas investment portfolios, bank accounts held abroad, and other non-Spanish assets fall entirely outside the taxable base.
• The Solidarity Tax similarly applies only to Spanish assets for Beckham Law beneficiaries, since the taxable base mirrors the wealth tax base.
• No obligation to file Modelo 720 for the declaration of overseas assets, as this requirement applies only to individuals taxed on worldwide income.

For a high-net-worth professional or executive relocating to Spain — whether on a corporate transfer or a digital nomad visa — under the Beckham Law, this can result in enormous savings. Consider an individual with EUR 8 million in global assets, of which only EUR 1.5 million is in Spain (a residence plus some local investments). Under the general regime, wealth tax would be assessed on the full EUR 8 million. Under the Beckham Law, only the EUR 1.5 million in Spanish assets is taxable, likely falling below the EUR 1,000,000 effective threshold (EUR 700,000 allowance + EUR 300,000 home exemption) and resulting in zero wealth tax.

Limitations to Keep in Mind

The Beckham Law regime lasts for a maximum of six years (the year of arrival plus five subsequent years). Once it expires, you revert to the general tax regime and become liable for wealth tax on worldwide assets. You will also need to begin paying social security contributions under the standard regime if you are self-employed. Planning for this transition is critical, especially for individuals who have accumulated significant wealth during their time in Spain.

Filing Requirements and Deadlines

Wealth tax is declared annually using Modelo 714, filed electronically through the Agencia Tributaria portal. You will need a valid NIE number and a digital certificate to access the filing system. The filing period typically runs from early April to 30 June of the year following the tax year — the same window used for the annual Modelo 100 income tax return. For the 2025 tax year, the filing window is April 2 to June 30, 2026.

Who Must File?

You are required to file Modelo 714 if:

• Your total gross assets (before exemptions and deductions) exceed EUR 2,000,000, even if no tax is owed, OR
• The resulting tax liability, after applying deductions and bonifications, is greater than zero.

This means that many residents of Madrid and Andalusia — who owe zero regional wealth tax — may still be required to file the return if their gross assets exceed the EUR 2 million threshold. Failure to file when required can result in penalties even if no tax is due.

The Solidarity Tax is filed separately using Modelo 718, during the same filing period as Modelo 714.

Combined Liability Cap

Spanish law establishes a combined cap: the total of your income tax (IRPF, filed via Modelo 100) and wealth tax liabilities cannot exceed 60% of your taxable income. If the combined amount exceeds this limit, the wealth tax is reduced — but never by more than 80% of its original amount. In practice, this cap primarily benefits taxpayers with high net wealth but relatively modest income, such as retirees living off accumulated assets.

Non-Residents and Wealth Tax

Non-residents who own assets in Spain — most commonly real estate — are also subject to the wealth tax, but only on Spanish-located assets. The state-level rates and the EUR 700,000 personal allowance apply. There is no primary residence exemption for non-residents, since their habitual residence is outside Spain by definition.

Non-residents must appoint a tax representative in Spain or file directly through the Agencia Tributaria's electronic systems. The same Modelo 714 is used, and the filing deadlines are identical.

Frequently Asked Questions

Is wealth tax calculated per person or per household?

Wealth tax in Spain is strictly an individual tax. Each person is assessed independently on their own assets. Married couples file separately for wealth tax purposes. This means that a couple with EUR 2 million in jointly held assets would each declare EUR 1 million, and each would benefit from their own EUR 700,000 personal allowance and EUR 300,000 primary residence exemption, potentially resulting in zero tax for both.

Can I avoid the Solidarity Tax by living in Madrid?

No. The Solidarity Tax was introduced precisely to prevent wealthy individuals from eliminating their wealth tax burden by residing in regions with full bonifications. While you will pay zero regional wealth tax in Madrid, the Solidarity Tax applies at the national level to net assets exceeding EUR 3 million. Any regional wealth tax paid elsewhere is deducted from the Solidarity Tax, so the total burden is similar regardless of where you live — though it may differ at the margins.

Do I pay wealth tax on property valued at purchase price or current market value?

Real estate is valued at the highest of three figures: the cadastral value (valor catastral), the value verified by the tax authorities, or the acquisition price. In practice, for recently purchased properties, the acquisition price is typically the highest and thus the relevant figure. For older properties, a multiplied cadastral value may exceed the original purchase price. Consult with a local asesor fiscal (tax advisor) to determine the applicable value for your specific situation.

What happens if I do not declare my assets?

Failure to file Modelo 714 when required constitutes a tax infraction. Penalties range from EUR 200 for late filing with no tax owed, up to significant surcharges and interest on unpaid tax. In serious cases involving concealment of assets, the penalty can reach 150% of the unpaid tax. Spain has extensive double taxation treaties and information exchange agreements with other EU countries and third states, making it increasingly difficult to hide foreign assets from the AEAT.

Official Sources and Further Reading

• Ley 19/1991, del Impuesto sobre el Patrimonio (Full text — BOE) — The primary legislation governing Spain's Wealth Tax.
• Ley 38/2022, Impuesto Temporal de Solidaridad de las Grandes Fortunas (BOE) — The law establishing the Solidarity Tax on Large Fortunes.
• Agencia Tributaria — Solidarity Tax portal — Official filing information from the Spanish Tax Agency.
• PWC Spain — Individual Other Taxes — Comprehensive summary of wealth tax rates and brackets.
• Tax Foundation — 2025 Spanish Regional Tax Competitiveness Index — Comparative analysis of regional tax burdens across Spain.