Wealth Tax in Spain

Overview

Spain's Wealth Tax (Impuesto sobre el Patrimonio) taxes your net worth above a threshold, on top of the income tax you already pay. It has one of the biggest regional variations of any Spanish tax, since each Autonomous Community can set its own exemptions and rebates.

Requirements

• Applies to Spanish tax residents on their worldwide net wealth, and to non-residents on assets located in Spain

Step-by-step process

• Know the general state minimum exemption — €700,000 per taxpayer — plus a separate exemption of up to €300,000 for your main home
• Check your Autonomous Community's specific rules, since regions can set their own minimum exemption or apply a rebate (bonificación) on the tax owed, and several (including Madrid, Andalucía and Galicia) currently apply a 100% rebate, effectively reducing regional Wealth Tax to zero
• If your net wealth exceeds €3 million, check whether the separate Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad de las Grandes Fortunas, ITSGF) applies — this is a national tax that applies regardless of regional Wealth Tax rebates, so it can affect you even in a region where ordinary Wealth Tax is effectively zero
• File the Wealth Tax return alongside your annual income tax return if you're above the relevant thresholds

Required documents

• A full statement of assets and liabilities, both in Spain and abroad, as of 31 December

Common mistakes

• Assuming living in a region with a 100% Wealth Tax rebate means no exposure at all — the national Solidarity Tax on large fortunes can still apply above €3 million regardless of your region's rebate
• Not accounting for worldwide assets if you're a tax resident, since Wealth Tax (like IRPF) is based on your global net worth, not just Spanish assets

Practical tips

• Regional exemption thresholds and rebates change periodically — always check your specific Autonomous Community's current rules rather than assuming a figure that applied in a previous year
• If your wealth is close to the relevant thresholds, professional valuation advice for illiquid assets (property, business interests) is worth getting, since valuation methodology affects your taxable base

How Tuchati can help

If you're not sure whether Wealth Tax or the Solidarity Tax applies to your situation, Tuchati can help you understand the general framework for your region.