How wealth tax works in Spain
Spain's Wealth Tax is an annual tax on an individual's net assets and rights, after permitted charges, debts and exemptions. It accrues on 31 December. Spanish residents generally report worldwide assets, while non-residents are assessed on Spanish-located assets under the real-obligation rules.
Under the state framework, the taxable base is reduced by a EUR 700,000 exempt minimum and a principal residence can be exempt up to EUR 300,000. Autonomous communities may change the minimum, rates, deductions and bonuses, and the Basque Country and Navarre use their own foral rules.
The state fallback scale runs from 0.2% on the first band of taxable wealth to 3.5% above EUR 10,695,996.06. This is a marginal scale, not a flat charge on the entire portfolio, and regional scales can produce a different result.
A return is generally required when tax is payable after reliefs or when the gross value of all assets and rights exceeds EUR 2 million, even if exemptions mean that no Wealth Tax is ultimately due.
The Temporary Solidarity Tax on Large Fortunes is a complementary state tax on net wealth above EUR 3 million. It uses a EUR 700,000 exempt minimum, rates of 1.7%, 2.1% and 3.5%, and a credit mechanism for Wealth Tax already paid; the combined-liability limits also matter.
Wealth tax brackets in Spain
| Bracket | Rate | Notes |
|---|---|---|
| Up to EUR 167,129.45 | 0.2% | State fallback scale after exemptions |
| EUR 167,129.46 to EUR 334,252.88 | 0.3% | |
| EUR 334,252.89 to EUR 668,499.75 | 0.5% | |
| EUR 668,499.76 to EUR 1,336,999.51 | 0.9% | |
| EUR 1,336,999.52 to EUR 2,673,999.01 | 1.3% | |
| EUR 2,673,999.02 to EUR 5,347,998.03 | 1.7% | |
| EUR 5,347,998.04 to EUR 10,695,996.06 | 2.1% | |
| Above EUR 10,695,996.06 | 3.5% |
Tax rates at a glance
- Wealth tax
- 0.2% - 3.5%Progressive
- State minimum exemption
- EUR 700,000
- Principal residence exemption
- Up to EUR 300,000
- Large-fortune solidarity tax
- 0% / 1.7% / 2.1% / 3.5%
- Wealth Tax filing threshold
- Gross assets over EUR 2m
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHigh earnersProperty ownersExpatsFamily offices
Watch out for
- Spain does have a wealth tax. A regional bonus or exemption can change the Wealth Tax bill, but it does not automatically eliminate reporting or the separate Temporary Solidarity Tax on Large Fortunes.
- The EUR 700,000 minimum and EUR 300,000 home exemption are state reference amounts. The autonomous community of residence, the location of Spanish assets and any foral regime can change the calculation.
- All assets may matter for the EUR 2 million filing test, including assets that are exempt from the tax. Foreign real estate, securities, cash, business interests and cryptoassets should be valued under the applicable rules.
- The business-asset exemption is conditional on genuine economic activity, ownership, management and remuneration requirements. A passive investment company is not automatically an exempt business.
- Wealth Tax, IRPF and the large-fortune solidarity tax can interact through a combined-liability cap. A high-value portfolio needs a coordinated model rather than three isolated rate calculations.
Frequently asked questions
Does Spain have a wealth tax?
Yes. Spain has an annual net Wealth Tax, with a state fallback scale of 0.2% to 3.5% after exemptions. Autonomous communities can modify the minimum, rates, deductions and bonuses.
What is the wealth-tax exemption in Spain?
Under the state framework, the general minimum exemption is EUR 700,000 and the principal residence can be exempt up to EUR 300,000. The applicable autonomous community may set different rules.
What is Spain's large-fortune tax?
The Temporary Solidarity Tax on Large Fortunes is a complementary state tax for net wealth above EUR 3 million. Its rates are 1.7%, 2.1% and 3.5% on the relevant bands, with a credit for Wealth Tax paid and statutory liability limits.