Wealth Tax in Spain for Foreigners & Non-Residents
Owning significant Spanish property or assets can trigger Impuesto sobre el Patrimonio even if you've never set foot in the country as a resident. The €700,000 exemption, regional variation, and the newer Solidarity Tax on Large Fortunes all interact in ways that catch foreign owners off guard.
€700,000
general state exemption before Wealth Tax applies
€3,000,000
threshold for the Solidarity Tax on Large Fortunes
Modelo 714
the standard Wealth Tax return form
Spain-only
assets counted for non-residents (not worldwide wealth)
How Spanish Wealth Tax applies to foreign owners
Only Spanish-situs assets count for non-residents
Unlike residents, who declare worldwide net worth, non-residents are assessed only on assets physically or legally located in Spain — real estate, Spanish bank accounts, shares in Spanish companies.
Regional variation can be dramatic
Wealth Tax is largely ceded to the Autonomous Communities. Madrid applies a 100% tax credit that effectively eliminates the regional liability, while other regions apply the full scale — the same Spanish property can face very different tax outcomes depending on its location.
The Solidarity Tax closes the Madrid loophole
Since Ley 38/2022, the ITSGF applies above €3 million net worth regardless of region, with Wealth Tax already paid creditable against it — so high-net-worth non-residents can't fully escape taxation by owning property in a low-tax region alone.
Filing follows the general tax calendar
Modelo 714 is filed in the same April-to-July window as the annual income tax campaign, and missing it can trigger the same surcharge regime under the Ley General Tributaria as other Spanish tax obligations.
Frequently asked questions
Who has to pay Spanish Wealth Tax (Impuesto sobre el Patrimonio)?
Under Ley 19/1991, Spanish tax residents are liable on their worldwide net assets, while non-residents are liable only on assets located in Spain (typically real estate, but also Spanish bank accounts, shares in Spanish companies, and other Spanish-situs assets). Since Royal Decree-Law 13/2011 reintroduced the tax after a temporary exemption period, both residents and non-residents have remained subject to it, with the general state exemption threshold currently set at €700,000 of net worth (art. 28 Ley 19/1991), plus, for residents only, an additional exemption of up to €300,000 for the habitual residence.
How much wealth can I hold before owing this tax?
The general state-level exemption (mínimo exento) is €700,000 per taxpayer, meaning a married couple with separately-owned assets can shelter up to €1.4 million combined before any liability arises. Several Autonomous Communities have raised this exemption further (Madrid effectively exempts most taxpayers through a 100% tax credit on the regional portion) or lowered it, since wealth tax is a state tax largely ceded to the regions, which can adjust rates, exemptions, and credits within limits set by national law.
What is the Solidarity Tax on Large Fortunes and how does it interact with Wealth Tax?
The Impuesto Temporal de Solidaridad de las Grandes Fortunas (ITSGF), introduced by Ley 38/2022, is a complementary state-level tax that applies above €3 million of net worth, specifically designed to prevent taxpayers from avoiding taxation by residing in an Autonomous Community that had reduced or eliminated its own Wealth Tax (notably Madrid). Any Wealth Tax already paid at regional level is creditable against the Solidarity Tax liability, so most taxpayers effectively pay only the higher of the two, not both in full — but taxpayers in low-Wealth-Tax regions with assets above €3 million may still owe the difference to the state.
Which assets count toward my Spanish net worth for this tax?
Taxable assets include Spanish real estate (valued at the higher of cadastral value, acquisition value, or the value determined by the tax administration), bank deposits held in Spain, shares in Spanish companies (with a specific exemption for qualifying family business shareholdings under strict conditions), and other rights with a Spanish economic connection. Non-residents do not include foreign assets in this calculation — only their Spanish-situs wealth is assessed, unlike Spanish tax residents who must declare worldwide assets.
How and when do I file Wealth Tax as a non-resident property owner?
Non-residents file Modelo 714 (the standard Wealth Tax return) alongside their income tax obligations, with the filing period typically running from April to June/July of the year following the tax year, aligned with the general Spanish tax campaign calendar. Filing is mandatory whenever the taxpayer's Spanish net worth exceeds the applicable exemption threshold or, in some regions, whenever specific reporting conditions apply regardless of the final tax due. Missing this filing can trigger surcharges under the Ley General Tributaria, similar to other Spanish tax obligations.
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