The Spanish Wealth Tax is a direct tax on the net wealth of individuals. It taxes the set of assets and rights of economic value owned by the taxpayer on a specific date, after deducting qualifying debts and certain exemptions.
The tax is based on national legislation (Law 19/1991, of June 6) but its management and many key parameters (exemptions, rates, deductions) are delegated to the 17 autonomous communities (Comunidades Autónomas). This regional autonomy creates important differences between regions in how, and even whether, Wealth Tax is effectively applied.
On top of Wealth Tax, Spain now applies a separate state‑level Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad de las Grandes Fortunas), aimed at very high net‑worth individuals.
What is the Spanish Wealth Tax in 2026?
The Spanish Wealth Tax is a direct tax on the net wealth of individuals. It taxes the set of assets and rights of economic value owned by the taxpayer on a specific date, after deducting qualifying debts and certain exemptions.
The tax is based on national legislation (Law 19/1991, of June 6) but its management and many key parameters (exemptions, rates, deductions) are delegated to the 17 autonomous communities (Comunidades Autónomas). This regional autonomy creates important differences between regions in how, and even whether, Wealth Tax is effectively applied.
On top of Wealth Tax, Spain now applies a separate state‑level Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad de las Grandes Fortunas), aimed at very high net‑worth individuals.
Wealth Tax vs Personal Income Tax (IRPF)
It is essential to understand the difference between Wealth Tax and Personal Income Tax (IRPF):
- IRPF taxes what you earn during the year: salaries, pensions, rental income, dividends, capital gains, etc.
- Wealth Tax taxes what you own on 31 December: real estate, bank deposits, investments, certain vehicles and luxury assets, after deducting debts and applying exemptions.
The two taxes complement each other: IRPF looks at your annual income flow, while Wealth Tax looks at your stock of assets.
When does Wealth Tax accrue and how is it declared?
Wealth Tax is assessed each year based on your situation on 31 December. All assets and debts are valued as of that date.
To comply, taxpayers file the Wealth Tax return using Modelo 714, following the same general tax calendar as the annual income tax return.
If you are tax resident in Spain, Wealth Tax normally applies to your worldwide assets (subject to rules and exemptions). If you are non‑resident, it generally applies only to your assets located in Spain.
What assets are included in Wealth Tax?
In general, you must include the following categories of assets to determine whether you are liable for Wealth Tax and how much you may owe:
- Real estate (in Spain and abroad for residents).
- Bank accounts and deposits.
- Listed and unlisted shares, investment funds, bonds and other financial investments.
- Life insurance policies and certain annuities.
- Jewellery, furs, works of art and antiques above certain thresholds.
- Vehicles over 125 cc, boats and aircraft.
- Real rights and concessions with economic content.
Some assets are exempt or benefit from special treatment (for example, qualifying family businesses and certain business assets, or habitual residence up to a limit).
How is real estate valued?
Real estate is usually valued at the highest of:
- The cadastral value shown on your latest IBI (property tax) bill.
- Any value determined or verified by the tax authorities for other taxes (such as Transfer Tax or Inheritance and Gift Tax).
- The purchase price or acquisition value stated in the deed.
Debts (such as mortgages) are valued at their nominal amount as of 31 December and can be deducted if they are properly documented and directly linked to taxable assets.
State‑level exemptions and thresholds
At state level, there are two key allowances for resident taxpayers:
- Main home exemption: up to 300,000 € of the value of your habitual residence. Only the value above this amount is counted as part of your taxable wealth.
- General personal exemption: 700,000 € per person, applied to your net wealth after deducting the main home exemption and eligible debts.
These thresholds can be modified by each autonomous community, which may apply lower or occasionally higher exemptions. For example, some regions historically set lower general thresholds, while others keep the state level.
Even if, after exemptions, you do not owe Wealth Tax, you are generally obliged to file a return if your gross assets (without subtracting debts or exemptions) exceed 2,000,000 €.
Family businesses and certain business/professional assets can benefit from significant exemptions when they meet specific conditions. In community property (gananciales) marriages, assets held in common are normally attributed 50% to each spouse, and each applies their own exemptions separately.
The Solidarity Tax on Large Fortunes
In addition to Wealth Tax, Spain has introduced a state‑level Solidarity Tax on Large Fortunes, designed to ensure that high net‑worth individuals contribute a minimum amount even if they live in regions that heavily discount or fully waive Wealth Tax.
Key features:
- It is a national tax, complementing Wealth Tax.
- It applies to individuals with net wealth above 3,000,000 € per person.
- It uses similar valuation rules and exemptions as Wealth Tax, including the 300,000 € main home exemption and the 700,000 € general personal allowance. In practice, it mainly affects those with more than about 4,000,000 € in net wealth.
- Any Wealth Tax paid to your autonomous community is generally credited against your Solidarity Tax bill, so you are not fully taxed twice.
This means that in regions with a 100% Wealth Tax deduction (like Madrid and Andalucía), high‑net‑worth residents may pay no regional Wealth Tax but can still owe Solidarity Tax above the 3,000,000 € net wealth threshold.
There is also a general cap rule that limits the combined total of income tax plus Wealth/Solidarity Tax to a percentage of your taxable income, although a minimum part of the Wealth/Solidarity Tax usually cannot be eliminated.
Wealth Tax and the Autonomous Communities
Although the legal basis for Wealth Tax is state‑level, its management and key parameters are delegated to each autonomous community. As a result:
- Minimum exemptions can differ by region.
- Regions can introduce their own deductions and allowances (for example, for disability, investments, cultural assets, or protected patrimony).
- Regions set their own rate scales and can, in practice, eliminate Wealth Tax by granting a 100% deduction on the tax due.
This is why the tax impact can be very different depending on where you live in Spain. Two people with identical assets can face very different Wealth Tax bills if one is resident in Madrid and the other in Catalonia.
Below are headline features for some of the main regions expats tend to ask about. These are simplified and approximate; actual brackets and rules are more detailed and can change frequently.
Wealth Tax by Region (overview, 2026)
Regions with full Wealth Tax deductions
Madrid
- General exemption broadly aligned with the state: 700,000 € per person plus 300,000 € main home exemption.
- 100% deduction of the Wealth Tax quota for residents, so in practice Madrid residents do not pay regional Wealth Tax, although those with high net wealth may still be subject to the Solidarity Tax.
Andalucía
- General exemption aligned with the state: 700,000 € per person plus 300,000 € main home exemption.
- Since late 2022, the region applies a 100% bonus on Wealth Tax. Residents and certain non‑residents with assets located in Andalucía can be exempt from paying regional Wealth Tax, but high‑net‑worth individuals may still fall under the Solidarity Tax.
Other regions have also introduced very high or full deductions in recent years, but the two best known for “zero Wealth Tax” in practice remain Madrid and Andalucía.
Regions with lower exemptions or higher effective Wealth Tax
Catalonia
- General personal exemption lower than the state, around 500,000 € per person plus 300,000 € main home exemption.
- Applies its own progressive rate scale, with rates higher than in many other regions, especially in upper brackets.
Valencian Community
- Has moved towards a higher personal exemption (around 1,000,000 € per person) plus the 300,000 € main home exemption, making it more attractive than in the past for some taxpayers.
- Applies a progressive rate scale that can reach relatively high effective rates at the top end.
Other regions
Regions such as Balearic Islands, Murcia, Galicia, Asturias, Aragón, Castilla‑La Mancha, Castilla y León and La Rioja generally follow the state 700,000 € exemption, sometimes with their own adjustments and with specific deductions for certain investments or types of assets.
Navarra and the Basque Country (Álava, Bizkaia, Gipuzkoa) have their own tax regimes and separate rules, including their own exemptions and scales, which often differ from state rules and from each other.
Because each autonomous community can adjust allowances and scales, and often does so in its annual budget, detailed planning always requires up‑to‑date regional information.
How much money does Wealth Tax raise?
Even with the addition of the Solidarity Tax on Large Fortunes, Wealth Tax still affects a relatively small group of taxpayers.
- The number of Wealth Tax returns is small compared with income tax returns, and average net wealth among payers is high.
- Total revenue from Wealth Tax and the Solidarity Tax is modest compared to the revenue from income tax or VAT, but these taxes are politically significant because they target high net‑worth individuals and interact with regional tax competition.
Who must pay Wealth Tax and/or Solidarity Tax?
To understand whether you may be subject to Wealth Tax or the Solidarity Tax, you should consider three questions:
- Are you a Spanish tax resident?
- Residents are generally subject to Wealth Tax and Solidarity Tax on their worldwide assets (subject to exemptions and the Beckham regime, see below).
- Non‑residents are usually taxed only on assets located in Spain.
- Do you exceed filing and payment thresholds?
- You must usually file a Wealth Tax return if your gross assets exceed 2,000,000 €, even if, after exemptions, no tax is payable.
- Wealth Tax typically becomes payable once your net wealth exceeds the regional thresholds (for example 700,000 € plus 300,000 € main home at state level, or the lower/higher thresholds set by your region).
- The Solidarity Tax applies when your net wealth exceeds 3,000,000 € per person, after applying the general and main home exemptions.
- Which region’s rules apply to you?
- Your autonomous community of residence on 31 December determines which regional Wealth Tax rules you must follow.
- In regions with full Wealth Tax deductions (such as Madrid and Andalucía), you may pay no regional Wealth Tax, but can still be subject to the state Solidarity Tax if your net wealth is high enough.
Because the interaction between Wealth Tax, Solidarity Tax, regional rules and family/business structures can be complex, it is strongly recommended to consult a Spanish tax advisor if your net wealth approaches or exceeds these thresholds.
Example: married couple under the community property regime
In community property (gananciales), assets acquired during the marriage are generally considered jointly owned 50/50 by each spouse.
Suppose a couple owns a main home worth 400,000 € under the community property regime and has no other significant assets:
- Each spouse is treated as owning 200,000 €.
- Each has a 300,000 € main home exemption.
- Because 200,000 € is below the 300,000 € exemption per person, the home does not enter the Wealth Tax calculation for either spouse, so no Wealth Tax is due (assuming no other assets and ignoring regional variations).
The general 700,000 € personal exemptions would still be available for other assets each spouse might own.
Beckham Law and Wealth Tax
Spain’s special tax regime for inbound workers, commonly known as the Beckham Law, can significantly change how Wealth Tax applies.
If you qualify and opt into this regime:
- For the duration of the regime, you are generally taxed like a non‑resident for income tax on Spanish‑source income only (with important exceptions), and
- For Wealth Tax, you are typically taxed only on your Spanish‑located assets, rather than on your worldwide wealth.
For high‑net‑worth individuals with substantial assets outside Spain, this limitation to Spanish‑situs assets can make a very big difference to their overall Wealth Tax and Solidarity Tax exposure.
However, the Beckham regime has strict eligibility criteria, time limits and specific interactions with visa types and employment structures. Anyone considering it should get tailored advice before moving to Spain or changing their tax residence.
Practical considerations for expats and future residents
If you are planning to move to Spain and have significant assets (real estate, investments, company shares, trusts, etc.), Wealth Tax and the Solidarity Tax should be part of your planning from day one.
Key steps include:
- Making a complete inventory of your worldwide assets and debts.
- Estimating how your net wealth would be taxed under Wealth Tax and the Solidarity Tax in at least two or three regions you are considering (for example Madrid vs Andalucía vs Valencia vs Catalonia).
- Assessing whether you might benefit from the Beckham regime or specific regional rules.
- Speaking with a tax advisor experienced in working with expats to model your particular situation before you become tax resident in Spain.
This article is for general information only and is based on the law and practice applicable in 2026. It does not constitute tax or legal advice. For personalised guidance on your situation, you should consult a qualified Spanish tax professional.
