If you own significant assets in Spain or abroad, you may be subject to Impuesto sobre el Patrimonio, or Spain’s wealth tax.
Though controversial, this tax still applies in many regions and can affect both residents and non-residents with assets in Spain.
In this guide:
-
Who must pay Spain’s wealth tax
-
How the tax is calculated
-
Thresholds, rates & exemptions
-
Key differences by autonomous community
-
Filing requirements
🧍 Who Is Liable for Wealth Tax in Spain?
| Taxpayer Type | Taxed On |
|---|---|
| Resident | Worldwide net assets |
| Non-Resident | Only assets located in Spain |
🧠 Wealth tax applies annually on the net value of your assets as of December 31st.
🏦 What Assets Are Included?
-
Real estate (in Spain or abroad)
-
Bank accounts
-
Stocks & bonds
-
Jewelry, artwork, vehicles
-
Insurance policies & pensions
-
Business ownership stakes
📝 Debts (e.g. mortgages, loans) can be deducted to calculate your net wealth.
📊 Wealth Tax Rates in Spain
Rates are progressive:
| Taxable Wealth (€) | Tax Rate |
|---|---|
| 0 – 167,129 | 0.2% |
| 167,130 – 334,252 | 0.3% |
| 334,253 – 668,500 | 0.5% |
| 668,501 – 1,336,999 | 0.9% |
| 1,337,000 – 2,679,999 | 1.3% |
| 2,680,000 – 5,347,998 | 1.7% |
| 5,348,000 – 10,695,996 | 2.1% |
| Over 10,695,996 | 3.5% |
📍 Regional Differences
Autonomous communities can:
-
Adjust exemptions and rates
-
Apply discounts or full bonificaciones (rebates)
For example:
-
Madrid: 100% rebate (you don’t pay anything, but must still file)
-
Andalusia: Also offers 100% rebate
-
Catalonia / Valencia / Balearics: Full rates apply, with minor variations
✅ Residents must apply regional rules based on where they are tax resident.
❌ Non-residents always apply national rules.
✅ Exemptions & Allowances
-
€700,000 personal allowance (nationwide base exemption)
-
€300,000 exemption for primary residence (residents only)
💡 So if you’re a resident:
You may only owe wealth tax on net assets above €1,000,000
For non-residents:
Only Spanish assets above €700,000 are taxable (with deductions for debt)
🧾 Filing Wealth Tax: Modelo 714
| Who Files? | When | How |
|---|---|---|
| Residents & Non-Residents | If net assets exceed €2M OR tax is due | File online with Modelo 714 |
Deadline: June 30 (same as income tax filing season)
If you’re not liable (due to exemption), you don’t have to file — unless your total wealth exceeds €2,000,000.
💼 Wealth Tax Example: Non-Resident with Property in Spain
-
Owns holiday villa in Marbella worth €1.2M
-
Mortgage of €200,000 → Net value = €1M
-
No other Spanish assets
-
Exceeds €700K allowance → Wealth tax applies
Estimated CGT:
-
€1M – €700K = €300K taxable
-
Effective tax: 0.2% to 0.5% range
-
Tax due: ~€1,000 to €1,500
⚠️ Avoiding Surprises: Wealth Tax Planning Tips
-
Restructure ownership (e.g., through non-taxable vehicles)
-
Offset debt against Spanish property
-
Verify if you’re eligible for regional rebates
-
Split assets strategically with spouse/partner
-
Consider relocating to Madrid or Andalusia for full rebate if resident
❓ FAQ: Spanish Wealth Tax
Is wealth tax a national or regional tax?
Both — the national structure applies, but autonomous communities may modify rates and exemptions.
Is there a way to avoid wealth tax legally?
Yes — through debt offsets, regional rebates, or ownership restructuring. Legal advice is crucial.
Do I need to pay wealth tax if I live abroad but own property in Spain?
Yes, if your net assets in Spain exceed €700,000, you’re liable as a non-resident.
👩⚖️ Work with Borderless Lawyers to Navigate Spanish Wealth Tax
Whether you’re a resident, non-resident, high-net-worth individual, or digital nomad, we help you:
-
File Modelo 714
-
Maximize exemptions
-
Reduce or eliminate your tax burden legally
-
Plan your asset structure across borders