Spain is one of the few countries in Europe that levies a wealth tax (Impuesto sobre el Patrimonio) on the net assets of individuals. If you own property in Spain — whether as a resident or a non-resident — this tax could affect you, and understanding how it works is essential for financial planning.
This guide covers who pays, how much, regional variations, and legal strategies to minimise your exposure.
| Status | Taxable Assets | Key Points |
|---|---|---|
| Tax residents | Worldwide assets | Everything you own globally is assessed. You benefit from a national exemption and a primary residence deduction. |
| Non-residents | Spanish assets only | Only assets located in Spain are taxed. No primary residence deduction available. |
Spain provides an individual exemption of €700,000. The first €700,000 of your net taxable assets is tax-free.
Tax residents also benefit from an additional €300,000 deduction for the primary residence (vivienda habitual). This means a resident's effective threshold is €1,000,000.
Non-residents do not receive the primary residence deduction.
| Region | Position | What This Means |
|---|---|---|
| Madrid | 100% allowance | Residents pay zero wealth tax. |
| Andalusia | 100% allowance | Residents of the Costa del Sol and Costa Almería pay zero wealth tax. |
| Region | Position | What This Means |
|---|---|---|
| Catalonia | €500,000 threshold | Rates up to 2.75% |
| Valencian Community | Standard €700,000 | Costa Blanca — progressive rates 0.2% to 3.5% |
| Region of Murcia | Standard €700,000 | Costa Cálida — standard progressive rates |
The Spanish government introduced the Solidarity Tax on Great Fortunes — a national-level tax that applies regardless of regional allowances. It targets individuals with net wealth exceeding €3,000,000 (after the standard €700,000 exemption), effectively those with total net assets above €3,700,000.
| Net Wealth Above €3M Threshold | Rate |
|---|---|
| €3,000,000 – €5,347,998 | 1.7% |
| €5,347,998 – €10,695,996 | 2.1% |
| Above €10,695,996 | 3.5% |
The Solidarity Tax applies to both residents and non-residents.
Spain's wealth tax is a net asset tax — liabilities (such as mortgages) are deducted. Assets assessed include:
Wealth is assessed as at 31 December each year. You must file a return if gross assets exceed €2,000,000.
| Taxable Base (above €700K) | Rate |
|---|---|
| First €167,129 | 0.2% |
| €167,129 – €334,253 | 0.3% |
| €334,253 – €668,500 | 0.5% |
| €668,500 – €1,337,000 | 0.9% |
| €1,337,000 – €2,673,999 | 1.3% |
| €2,673,999 – €5,347,998 | 1.7% |
| €5,347,998 – €10,695,996 | 2.1% |
| Above €10,695,996 | 3.5% |
Choosing Madrid or Andalusia (including the Costa del Sol and Costa Almería) eliminates regional wealth tax entirely. The Solidarity Tax still applies above €3 million.
The €700,000 exemption applies per individual. Joint ownership between spouses doubles the threshold to €1,400,000.
Wealth tax is on net assets. An outstanding mortgage reduces your taxable base.
Certain business assets and qualifying company investments can benefit from exemptions. Specialist advice is required.
Since wealth is assessed on 31 December, the timing of transactions around year-end can affect your liability.
For the majority of buyers on the Costa Blanca, Costa Cálida, Costa del Sol, and Costa Almería, the €700,000 exemption means the wealth tax does not apply at all. For those with higher-value portfolios, regional choices and sensible structuring can significantly reduce the burden.
At Mediter Real Estate, we help buyers across the Costa Blanca, Costa Cálida, Costa del Sol, and Costa Almería understand the full financial picture — including wealth tax implications. We connect you with experienced tax advisers and lawyers.
Get in touch today for a free, no-obligation consultation.
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