Spanish Wealth Tax (Impuesto sobre el Patrimonio) is an annual tax on a person’s net assets. It is often confused with the taxes on property, but it is a different tax with its own rules. This guide explains who is liable, the thresholds, how Andalusia’s relief works, how the state Solidarity Tax fits in and how to file.
Wealth Tax is not “property tax”
Three different taxes affect people who own property in Spain:
- IBI (Impuesto sobre Bienes Inmuebles): the local tax charged every year by the town hall on the value of real estate.
- Non-resident income tax on property (Modelo 210): non-residents declare income from Spanish property each year, even when it is not rented. See our Modelo 210 guide.
- Wealth Tax: a tax on your net assets as a whole, explained below. Property is only one part of it.
Who is liable for Spanish Wealth Tax?
- Tax residents of Spain are liable on their worldwide net assets.
- Non-residents are liable only on assets located, or rights exercisable, in Spain.
What defines tax residence under Spanish law?
You are tax resident in Spain for a calendar year if you spend more than 183 days here (sporadic absences count unless you prove residence elsewhere) or if the main centre of your activities or economic interests is in Spain. Spain also presumes residence, unless proven otherwise, when your spouse and dependent minor children live habitually here (Article 9 of the Personal Income Tax Law).
Which assets are subject to Wealth Tax?
Real estate, bank accounts, investments, shares, life insurance, vehicles and other assets, minus debts. Some assets are exempt. One example: a taxpayer’s habitual residence is exempt up to 300,000 euros (Article 4.Nine of the Wealth Tax Law). That limit is set per taxpayer, and it applies to the home that is the taxpayer’s habitual residence for income tax purposes, so a non-resident’s holiday home in Spain does not qualify.
What are the thresholds and rates?
- Tax-free allowance (mínimo exento): 700,000 euros of net taxable assets under state rules (Article 28). This is an allowance deducted from the taxable base, not a lower-rate band. Andalusia sets higher allowances for people with a disability: 1,250,000 or 1,500,000 euros, depending on the degree (Article 24 of Andalusian Law 5/2021).
- State scale: from 0.2% to 3.5%, with the top rate on taxable assets above 10,695,996.06 euros (Article 30).
- Regional rules: each autonomous community can set its own allowance, scale and reliefs, which is why the tax due differs across Spain.
How does Wealth Tax work in Andalusia?
Andalusia introduced a 100% relief on any positive Wealth Tax due (Article 25 bis of Law 5/2021, in force since September 2022). While the state Solidarity Tax remains in force, a transitional rule (Fifth Transitional Provision) replaces that relief: the Andalusian scale is suspended, and taxpayers apply a relief equal to the difference, if any, between their Wealth Tax and the Solidarity Tax they would owe. The Junta de Andalucía explains that taxpayers who are not liable to the Solidarity Tax still pay no Wealth Tax in Andalusia, and that those who are liable pay their tax in Andalusia through Wealth Tax and do not need to file the Solidarity Tax return.
The Solidarity Tax on large fortunes
The Temporary Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad de las Grandes Fortunas, ITSGF) is a state tax that complements Wealth Tax. It applies to net assets above 3,000,000 euros, with a 700,000 euro allowance, a 0% rate on the first 3,000,000 euros of taxable base and rates of 1.7%, 2.1% and 3.5% above that (Article 3 of Law 38/2022). Wealth Tax paid is deducted, so it only bites on wealth the regions do not tax. Although called “temporary”, Royal Decree-law 8/2023 extended it until the review of wealth taxation within the reform of regional financing, and its return (Modelo 718) was updated again by Order HAC/652/2026 in June 2026.
How do you declare Spanish Wealth Tax?
Who must file, and when?
According to the Tax Agency, you must file a Wealth Tax return if:
- after applying deductions and reliefs, there is tax to pay; or
- even with no tax to pay, the gross value of your assets is more than 2,000,000 euros, counting exempt assets and without deducting debts.
So, in Andalusia, a resident with more than 2 million euros of gross assets may have to file even if the relief leaves nothing to pay. The Wealth Tax return is filed online in the same campaign as the income tax return: for 2025, from 8 April to 30 June 2026.
Which documents do you need?
Property deeds and cadastral values, bank balances at 31 December and average balances for the last quarter, investment statements, insurance values, and evidence of debts. A complete list depends on your assets.
Can non-residents use regional rules?
Yes. Non-residents can apply the rules of the autonomous community where the greatest value of their Spanish assets is located (Fourth Additional Provision of the Wealth Tax Law).
How do inheritance tax and wealth tax interact?
They are separate taxes. Inheritance tax applies once, to what each heir receives on a death. Wealth Tax applies every year to what you own on 31 December. Assets you inherit will count in your Wealth Tax from the next 31 December. See our guide to inheritance tax in Andalusia.
How can expats plan for cross-border implications?
Wealth Tax depends on residence, and residence can be claimed by two countries. Tax treaties decide some of these cases, and assets abroad may be taxed in both countries. Review your position before a move, a large purchase or a change of residence.
Frequently asked questions
Which regions in Spain have no wealth tax?
No region has abolished the tax itself: Wealth Tax is a state tax ceded to the regions, which can set allowances, scales and reliefs. Andalusia, for example, applies a relief that leaves taxpayers who are not liable to the Solidarity Tax with nothing to pay, as explained above. Other regions have their own rules, and the state Solidarity Tax applies above 3 million euros of net assets where regional relief would otherwise remove the tax.
How to avoid wealth tax in Spain?
You cannot avoid it if you are liable, but you can make sure you only pay what the law requires: apply the exemptions you are entitled to (such as the habitual residence and qualifying family business exemptions), the right regional rules and the joint income and wealth limit. Planning should be done with advice and before 31 December, the date on which the tax is measured.
How we can help
MMR Consultant is based in Málaga with offices in Marbella. Our tax services team prepares Wealth Tax and Solidarity Tax returns for residents and non-residents, and our financial advisory team helps with planning. Contact us for a review.
Sources
Checked on 14 October 2026.
- Boletín Oficial del Estado, Wealth Tax Law (Law 19/1991): Articles 4 (Eight and Nine), 5, 12, 28, 30, 31 and 37 and Fourth Additional Provision.
- Agencia Tributaria, Who must file Wealth Tax, page updated 24 March 2026.
- Junta de Andalucía, Wealth Tax in Andalusia.
- Boletín Oficial del Estado, Andalusian Law 5/2021, consolidated text updated 31 December 2025: Articles 24, 25 and 25 bis and Fifth Transitional Provision.
- Boletín Oficial del Estado, Law 38/2022 (Solidarity Tax), consolidated text, Article 3.
- Agencia Tributaria, What the Solidarity Tax on Large Fortunes taxes.
- Boletín Oficial del Estado, Order HAC/652/2026 (Modelo 718).
- Agencia Tributaria, Renta and Wealth Tax campaign dates.
- Boletín Oficial del Estado, Personal Income Tax Law, Article 9.
- Boletín Oficial del Estado, Local Finance Law, Article 60 (IBI).
This article is general information, not tax advice for your case.
