Spanish Wealth Tax for Foreign Residents: Complete Guide

Spanish Wealth Tax, or Impuesto sobre el Patrimonio, is an annual tax on the net wealth of individuals.

For foreign residents, one of the most important distinctions is whether you are Spanish tax resident or non-resident.

If you are not certain whether you are tax resident in Spain, see our Spanish Tax Residence Guide.

What Is Spanish Wealth Tax?

Wealth Tax is a tax on the economic value of an individual’s assets and rights, after applying the relevant exemptions and permitted debts and liabilities.

It is separate from:

• Spanish income tax;
• capital gains tax;
• Modelo 720;
• inheritance and gift tax;
• IBI property tax; and
• non-resident income tax under Modelo 210.

You can therefore have Wealth Tax obligations even though you have already reported income or assets under another Spanish tax regime.

Who Is Subject to Wealth Tax?

Spanish Wealth Tax distinguishes between two basic forms of liability:

• obligación personal — personal liability; and
• obligación real — real or asset-based liability.

Spanish Tax Residents: Worldwide Wealth

An individual whose habitual residence is in Spain for Wealth Tax purposes is generally subject to tax on their worldwide net wealth.

This can include assets situated in:

• Spain;
• your country of citizenship;
• another EU country;
• the United Kingdom;
• Norway;
• the United States;
• Switzerland; and
• other countries.

Non-Residents: Spanish Assets Only

A non-resident individual is generally subject to Wealth Tax only on assets and rights that are:

• situated in Spain;
• exercisable in Spain; or
• required to be fulfilled in Spain.

This can include Spanish:

• real estate;
• certain bank or financial assets;
• shares or interests in certain entities;
• business interests;
• rights over Spanish assets; and
• other taxable property.

Can Shares in a Foreign Company Be Treated as Spanish Assets?

Potentially, yes.

Spanish law contains a special rule for non-listed shares in entities whose assets consist, directly or indirectly, at least 50% of Spanish real estate.

That means holding Spanish property through a foreign company does not necessarily remove the investment from Spanish Wealth Tax.

Does a NIE Make You Liable for Wealth Tax?

No.

A NIE is an identification number.

It does not determine whether you are Spanish tax resident, and it does not by itself create Wealth Tax liability.

See our NIE vs TIE vs CUE guide.

Does Owning Property in Spain Make You Tax Resident?

No.

You can own substantial Spanish property while remaining tax resident in another country.

However, a non-resident can still be subject to Spanish Wealth Tax on that Spanish property.

What Is the €700,000 Wealth Tax Exemption?

Under the state rules, the general minimum exempt amount is:

This is applied after determining the taxable net wealth.

However, autonomous communities can establish different minimum exemptions for their resident taxpayers.

Is the €700,000 Exemption Per Person or Per Couple?

Wealth Tax is an individual tax.

There is no single €700,000 exemption shared between a married couple.

Each spouse calculates their own:

• assets;
• rights;
• debts;
• exemptions; and
• tax liability.

The €300,000 Habitual Home Exemption

A taxpayer’s habitual home can be exempt from Wealth Tax up to:

The exemption can apply to:

• full ownership;
• shared ownership; or
• certain rights of use or enjoyment such as usufruct.

Example: Married Couple Owning Their Home

Suppose a married couple jointly owns their habitual home 50/50 and the relevant taxable value is €500,000.

Each spouse’s share is €250,000.

Because each person’s share is below the €300,000 habitual-home exemption, the entire €250,000 share may be exempt for each spouse, assuming the legal conditions are satisfied.

What if Your Home Is Worth More Than €300,000?

The exemption is capped.

For example, if your taxable share of your habitual home is €450,000:

Does the €300,000 Home Exemption Apply to a Holiday Home?

No.

The specific exemption applies to the taxpayer’s habitual residence.

A second home, investment property or holiday property does not qualify merely because you use it personally.

Can a Non-Resident Use the Habitual Home Exemption for a Spanish Holiday Home?

Generally not, because a Spanish holiday property is not normally the non-resident taxpayer’s habitual residence.

The property can nevertheless be subject to Spanish Wealth Tax under the non-resident rules.

Which Assets Count?

Potentially taxable assets include:

• real estate;
• bank accounts and deposits;
• shares;
• investment funds;
• bonds;
• certain insurance rights;
• business interests;
• vehicles;
• boats;
• aircraft;
• jewellery;
• valuable art and antiques; and
• other rights with economic value.

Are All Assets Taxable?

No.

Spanish Wealth Tax law contains a number of exemptions.

Depending on the circumstances, these can include:

• the habitual home up to the statutory limit;
• certain business and professional assets;
• qualifying interests in certain family or operating businesses;
• household effects;
• certain intellectual and industrial property rights;
• certain historical assets;
• certain art and antiques; and
• other specifically exempt assets or rights.

Are Household Contents Taxed?

Ordinary household and personal effects are generally exempt.

However, the exemption does not simply cover every valuable object inside your home.

Items such as:

• jewellery;
• luxury furs;
• vehicles;
• boats;
• aircraft;
• art; and
• antiques

can be subject to separate Wealth Tax treatment.

Can Business Assets Be Exempt?

Potentially.

Qualifying business and professional assets can benefit from an exemption where the statutory conditions are satisfied.

Qualifying interests in certain companies can also be exempt.

These exemptions contain detailed conditions concerning matters such as:

• ownership percentage;
• management functions;
• remuneration;
• the nature of the company’s activity; and
• family-group ownership.

This is not an automatic exemption for every privately owned company.

How Is Real Estate Valued?

Spanish property is subject to specific Wealth Tax valuation rules.

For Spanish real estate, the value can depend on figures including:

• cadastral value;
• value determined or verified by the tax administration; and
• acquisition value.

The applicable Wealth Tax rule determines which value must be used.

How Is Foreign Property Valued?

A Spanish tax resident can need to include foreign property in worldwide Wealth Tax.

The valuation must be converted to euros and determined according to Spanish Wealth Tax valuation rules.

Do not simply insert:

• an estate agent’s estimate;
• the foreign property-tax value;
• the original purchase price; or
• the current asking price

without checking the applicable Spanish valuation method.

How Are Bank Accounts Valued?

Bank deposits are generally valued by comparing:

• the balance at 31 December; and
• the average balance during the final quarter.

The applicable statutory rule determines which figure is included.

How Are Shares and Investment Funds Valued?

Different rules apply depending on whether the asset is:

• listed shares;
• unlisted company shares;
• investment-fund units;
• bonds; or
• another financial instrument.

The Wealth Tax value may therefore differ from the figure used for income tax, inheritance tax or accounting purposes.

Can Debts Be Deducted?

Yes, where the statutory conditions are satisfied.

Wealth Tax is based on net wealth, so certain debts and liabilities can reduce the taxable base.

Examples may include qualifying:

• mortgages;
• loans;
• other personal debts; and
• liabilities connected with taxable assets.

Can a Mortgage Reduce the Wealth Tax Value of a Property?

Potentially, yes.

For a Spanish tax resident, qualifying debts can generally be taken into account according to the Wealth Tax rules.

For a non-resident subject only to Spanish assets, deductions are narrower: the debt must be connected with the Spanish taxable assets or capital invested in them.

Example: Non-Resident With a Mortgaged Spanish Property

Suppose a non-resident owns Spanish property with a Wealth Tax value of €1,000,000 and has a qualifying outstanding mortgage of €250,000 directly connected with that property.

The net amount considered for the Wealth Tax calculation may be:

The applicable minimum exemption and regional rules must then also be considered.

When Is Wealth Tax Measured?

Wealth Tax is an annual tax measured at:

Your position on that date is therefore particularly important.

What if You Sell an Asset on 30 December?

If you genuinely no longer own the asset on 31 December, that specific asset will generally not appear as an asset owned at year-end.

However, the proceeds from the sale may still exist as:

• cash;
• a bank deposit;
• another investment; or
• another taxable right.

Selling an asset immediately before year-end therefore does not necessarily reduce net wealth.

When Must You File a Wealth Tax Return?

A Wealth Tax return is generally required if either:

1. the calculated tax liability is payable after the relevant deductions and allowances; or
2. the gross value of your assets and rights exceeds €2 million, even if the final tax due is zero.

How Is the €2 Million Filing Threshold Calculated?

For this test, the value of assets and rights is considered:

• including exempt assets; and
• without subtracting debts or charges.

This is why someone can be required to file a Wealth Tax return even when the final tax due is zero.

Example: No Wealth Tax Due but Filing Required

Suppose a taxpayer has assets with a gross Wealth Tax value of €2.2 million.

After:

• debts;
• the habitual-home exemption;
• the minimum exemption; and
• regional relief

the final tax due may be zero.

Nevertheless, the taxpayer can still have to file because gross assets and rights exceed €2 million.

Does the Autonomous Community Matter?

Very much.

Although Wealth Tax is a state tax, autonomous communities have substantial regulatory powers.

Depending on the region, differences can exist in:

• minimum exemptions;
• tax rates;
• regional deductions;
• regional rebates; and
• special exemptions.

Which Autonomous Community Applies to a Spanish Resident?

For a Spanish resident, the applicable regional Wealth Tax rules are determined under the rules governing tax residence within Spain.

You cannot simply choose whichever autonomous community has the lowest Wealth Tax.

Which Autonomous Community Applies to a Non-Resident?

Non-resident taxpayers are entitled to apply the Wealth Tax rules approved by the autonomous community where the greatest value of their taxable Spanish assets and rights is located.

This can make a significant difference to the final tax.

What About Wealth Tax in Andalucía?

Andalucía previously introduced a general 100% Wealth Tax rebate.

However, the position changed because of the state Temporary Solidarity Tax on Large Fortunes.

While the state solidarity tax remains in force, Andalucía operates a transitional Wealth Tax regime rather than simply applying the old general 100% rebate in every case.

Under the current regime, the Andalusian rebate is calculated by reference to the difference between the Wealth Tax liability and the amount that would correspond under the solidarity tax calculation.

Does Andalucía Still Have a €700,000 Minimum Exemption?

For ordinary taxpayers, the state €700,000 minimum exemption remains the general reference.

Andalucía has higher minimum exemptions for qualifying taxpayers with disabilities.

Always check the current regional rules for the tax year being filed.

What Is the Temporary Solidarity Tax on Large Fortunes?

The Impuesto Temporal de Solidaridad de las Grandes Fortunas, or ITSGF, is a separate state wealth tax aimed at very large fortunes.

It was originally introduced as a temporary measure, but its application was subsequently extended pending wider reform of Spain’s regional financing and wealth-tax system.

The return is filed using:

Is the Solidarity Tax the Same as Wealth Tax?

No.

They are separate taxes, although their calculation is coordinated to prevent simple double taxation of the same wealth.

Wealth Tax already paid can affect the amount payable under the solidarity tax.

What Is the Solidarity Tax Threshold?

The tax is aimed at high levels of net wealth and includes its own exemption and progressive scale.

Because the interaction with Wealth Tax and regional rebates is complex, taxpayers approaching several million euros of net wealth should calculate both taxes rather than relying on the Wealth Tax result alone.

Andalucía and the Solidarity Tax

The current Andalusian mechanism is designed so that taxpayers who would otherwise be exposed to the state solidarity tax instead pay the relevant amount through Wealth Tax in Andalucía.

For the 2025 tax year, AEAT’s guidance explains that the Andalusian rebate is calculated using the difference between the Wealth Tax amount and the corresponding ITSGF amount.

This means the practical tax burden can be very different from the old headline description of a universal 100% Wealth Tax rebate.

Modelo 720 vs Wealth Tax

These are frequently confused.

See our Modelo 720 Guide.

Can You Need Modelo 720 but Not Wealth Tax?

Yes.

For example, a Spanish tax resident may exceed the €50,000 Modelo 720 threshold for foreign bank accounts while remaining far below the Wealth Tax exemption.

Can You Need Wealth Tax but Not Modelo 720?

Yes.

A taxpayer might have substantial Spanish assets but no reportable foreign assets at all.

Modelo 720 and Wealth Tax serve different purposes.

Wealth Tax vs Modelo 210

A non-resident property owner may need both.

Modelo 210 can tax:

• imputed income;
• rental income; or
• a capital gain.

Wealth Tax instead looks at the value of the property and other qualifying assets at year-end.

See our Modelo 210 Guide.

Can Foreign Wealth Taxes Be Credited?

For Spanish residents subject to personal Wealth Tax on worldwide assets, Spanish law provides relief in certain circumstances for comparable personal wealth taxes paid abroad.

The deduction is limited to the lower of specified amounts under the statutory formula.

International treaties can also affect the result.

Do Double-Tax Treaties Apply to Wealth Tax?

Some Spanish double-tax treaties cover taxes on capital as well as income.

Others may have narrower scope.

If substantial wealth is located abroad, the relevant treaty should be checked rather than assuming ordinary income-tax treaty rules apply automatically.

Can You Deduct Foreign Wealth Tax Paid Abroad?

Potentially, where Spanish law permits a deduction and the foreign tax is of the relevant personal wealth-tax character.

The deduction is subject to statutory limits.

When Is Wealth Tax Filed?

Wealth Tax is normally filed during the annual Spanish income-tax campaign in the year following the tax year.

For example, the 2025 Wealth Tax return was filed during the 2026 campaign.

The exact dates change from year to year and should be checked before filing.

Is Wealth Tax Filed Online?

Yes.

AEAT requires Wealth Tax returns to be filed electronically.

Available identification methods can include:

• Cl@ve;
• Certificado Digital;
• DNIe;
• reference number where permitted; or
• an authorised representative.

See our Digital Administration in Spain guide.

Can a Gestor File Wealth Tax?

Yes.

For simple asset portfolios, Wealth Tax can be manageable.

Professional advice becomes more valuable where you have:

• substantial foreign assets;
• business interests;
• family companies;
• foreign pension or insurance products;
• trusts or foundations;
• property held through companies;
• assets in several countries;
• large debts;
• possible solidarity-tax exposure; or
• uncertainty over regional rules.

What Documents Should You Keep?

Keep evidence supporting:

• bank balances;
• investment valuations;
• share values;
• property values;
• purchase prices;
• mortgage balances;
• loan documentation;
• insurance values;
• business valuations;
• foreign taxes paid; and
• ownership percentages.

Common Spanish Wealth Tax Mistakes

“Only Spanish assets count.”

That is generally true for non-residents, but Spanish tax residents are normally taxed on worldwide wealth.

“The €700,000 exemption means I do not file until I own €700,001.”

Not necessarily. Regional rules can differ, and the separate €2 million gross-assets filing test also exists.

“My home is completely exempt.”

Only up to the statutory habitual-home exemption, generally €300,000 per taxpayer.

“The €2 million threshold is another exemption.”

No. It is a filing-obligation threshold.

“I can subtract my mortgage before checking the €2 million filing threshold.”

No. The €2 million test looks at gross assets and rights without deducting debts.

“Modelo 720 and Wealth Tax are the same thing.”

No. Modelo 720 is an information return; Wealth Tax is a tax.

“Andalucía has a permanent 100% Wealth Tax rebate, so nobody pays.”

That is outdated as a general description while the current solidarity-tax coordination regime remains in force.

“I live abroad, so Spanish Wealth Tax cannot apply.”

Incorrect. Non-residents can be subject to Wealth Tax on qualifying Spanish assets.

“A foreign company owning Spanish property avoids Wealth Tax automatically.”

No. Special rules can bring certain property-rich entities into the Spanish tax base.

Spanish Wealth Tax Checklist

Spanish Wealth Tax: The Short Version

Spanish Wealth Tax is an annual tax on the net wealth of individuals.

Spanish tax residents are generally subject to the tax on worldwide wealth, while non-residents are generally taxed only on qualifying Spanish assets and rights.

The state system provides a general minimum exemption of €700,000 and an additional exemption of up to €300,000 for a taxpayer’s habitual home, although autonomous communities can modify important parts of the tax for their residents.

A Wealth Tax return can also be required when gross assets and rights exceed €2 million even if the final tax due is zero.

The regional rules matter significantly, and taxpayers with very large fortunes also need to consider the state Temporary Solidarity Tax on Large Fortunes.

Where to Go Next

• Spanish Tax Residence Guide
• Modelo 720: Foreign Assets Reporting in Spain
• Modelo 210 for Non-Residents
• Foreign Pensions and Spanish Tax