Wealth Tax in Spain – How much you’ll pay in 2024

All expats need to consider the wealth tax in Spain. The Spanish government uses your total global assets to calculate your Spanish tax liability, but the amount you pay varies by region. We’ll explore who is liable, how to calculate your net worth, and how much wealth tax you’ll pay in each region. And remember to have March 31st on your calendar for your Modelo 720. Check out our guide to see how the Wealth and Solidarity taxes fit into the Spanish Tax System for Expats.

Spanish Wealth Tax – impuesto sobre el patrimonio

The Patrimonio is an annual tax, commonly called the wealth tax, introduced in 1977 and amended in 1992. It is calculated using the total net value of eligible assets on 31 December each year. The tax is progressive, so the percentage tax increases with the total value of your assets minus associated liabilities. There is a national rate, but some regions apply different tax percentages and thresholds.

Each region applies a deduction, meaning net worth under the deduction is not taxed. The national deduction is €700,000, but it varies in some autonomous regions, and we’ll cover these in detail later in the article.

An Individual Tax

The tax is applied to individuals. This means that each individual must declare joint assets as the percentage owned. So, if a husband and wife jointly own a house worth €1,000,000, they would declare 50% of the value (€500,000) each.

In addition, the deductions are individual as well. In the example above, the husband and wife could claim standard national wealth tax in Spain deductions of €700,000 plus the €300,000 for the family home. So, this makes €1,000,000 each, or €2,000,000 in total.

Spain Wealth Tax Rates 2024 – National Rates

From	To	Percentage
–	167,129	0.20%
167,129	334,253	0.30%
334,253	668,500	0.50%
668,500	1,337,000	0.90%
1,337,000	2,673,999	1.30%
2,673,999	5,347,998	1.70%
5,347,998	10,695,996	2.10%
10,695,996	And Above	2.50%

Communities with different wealth tax rates and thresholds.

Region	From	To
Catalonia	0.21%	2.75%
Asturias	0.22%	3.00%
Region of Murcia	0.24%	3.00%
Andalucía (note: 100% relief, so effective 0%)	0.24%	3.03%
Cantabria	0.24%	3.03%
Community of Valencia	0.25%	3.12%
Balearics	0.28%	3.45%
Extremadura	0.30%	3.75%

Note: The Madrid and Andalucía regions apply a 100% wealth tax relief. This means that you have an effective 0% rate and pay no tax in these two regions.

Who Pays Wealth Tax in Spain?

Your region’s wealth tax policy will dictate how and if you are liable for this tax. You should speak to a Spanish taxation expert to ensure you follow your regional requirements.

In general:

• Spanish Tax (Fiscal) Residents calculate Wealth Tax on their global net worth.
• Non-residents for Tax calculate Wealth Tax only on Spanish assets.

Wealth Tax Deductions – 2024

There is a national deduction schedule, but there are also regional variations. Federal deductions will apply if a region has not set a local deduction.

National Wealth Tax in Spain Deductions

• Individual deduction: €700,000
• Family Home in Spain: €300,000
• Any wealth tax paid in a country with a Spanish Taxation Treaty (DTT).

Regional Wealth Tax in Spain Deductions

Each autonomous region can apply different deductions and levels to the national wealth tax. These override those set nationally. Here are three examples of variations.

• In Cataluña, the individual deduction is lower at €500,000. However, the family home deduction is higher at €500,000.
• Some regions in Spain allow deductions related to your professional activities.
• Others, including Madrid and Andalucía, apply a 100% deduction. This means you will pay no tax in these regions (although you may still have to submit your declaration.)

These variations make it vital to consult a quality tax lawyer to ensure you are filing correctly. They’ll help you to claim all available deductions to minimize the tax you pay.

Included Assets For Your Wealth Tax

You work out your total net worth as of 31 December each year. So, something purchased after 1 January and sold before 31 December of the same year will never be liable for wealth tax.

Remember: The calculation is on net assets, so associated liabilities like mortgages or loans are deducted from values.

• Real Estate (including your primary residence).
• Vehicles (including cars, boats, and airplanes).
• Investments, shares, bank accounts, and savings.
• Business assets (in some cases).
• Jewelry (in some cases).
• Art (in some cases).

Excluded Assets / Exceptions

• Household Contents (apart from those in the list above.)
• A business that a) you own a significant shareholding in, b) you manage, and c) pays a significant part of your net income.
• Pension rights.
• Business assets (in some cases).
• Jewelry (in some cases).
• Art (in some cases).
• Intellectual property rights.

Spain Wealth Tax Calculator 2024

You can calculate your wealth tax liability using this formula.

(Total Net Assets – Total Deductions) * Wealth Tax Percentage.

So, you’ll pay zero tax if your deductions or allowance exceed your assets.

Here’s an example of a couple, Sue and Tim, using the standard national rates and deductions.

Assets	Asset value	Sue %	Sue	Tim %	Tim
Family Home	1,000,000	50%	500,000	50%	500,000
Joint Shares	600,000	50%	300,000	50%	300,000
Sue’s Boat	500,000	100%	500,000	0%	–
Tim’s Tiara	100,000	–	–	100%	100,000
Total Assets	2,200,000		1,300,000		900,000
Deduction – Individual			700,000		700,000
Deduction – Home			300,000		300,000
Total Deductions			1,000,000		1,000,000
Taxable Amount (Assets – Deductions)			300,000		0

There is a simpler wealth tax calculator – book an appointment with our expert Spanish Tax Lawyer here.

How to File – Modelo 720 and 714

There are two forms (modelos) you’ll need to know:

Modelo 720

The Modelo 720 is for declaring assets outside of Spain. You’ll need to file this form if you have assets exceeding €50,000 globally. You should submit the form annually if values change by more than €20,000 (total or single).

If you fall into one of the following three groups, you will need to file one:

1. If you have bank savings and deposit accounts held abroad, the sum of all the accounts together exceeds €50,000.
2. You have other assets and private pensions held abroad that exceed €50,000. This includes stocks and shares, bonds, life insurance, pension plans, and annuities that are currently being paid. You are in this category if they had a total or surrender value on December 31st of the previous year of €50,000 or more.
3. You own a property with a purchase value of over €50,000, including private property or business premises.

Each individual must submit a report, declare the total value, and share if the assets are in joint names. 

Important: You won’t necessarily pay any wealth tax on your assets if your declaration is under the limit. The declaration was implemented to prevent money laundering and fiscal fraud. However, you can be fined if you don’t file it. The fine for not filing your declaration can be as high as €10,000.

Deadline: 31 March of each year.

Remember: This is an individual tax, so joint owners must each submit a form declaring their percentage ownership of the asset.

How to submit your Modelo 720

The easy way is to have a Spanish tax expert check and file on your behalf. However, you can also file automatically through the Agencia Tributaria website using a Spanish digital certificate.

Modelo 714

The Modelo 714 is for declaring Spanish assets. Two groups need to submit this form:

1. Those with Spanish assets worth more than €2,000,000.
2. Anyone liable for a Spanish Wealth Tax payment.

Deadline: 30 June of each year.

Remember: This is an individual tax, so joint owners must each submit a form declaring their percentage ownership of the asset.

The 60% Rule – Pay Less Tax

For some Spanish taxpayer residents, you can reduce the amount of personal wealth tax they pay.

The total wealth tax and income tax you pay in a single year has an upper limit. The amount must be at most 60% of your taxable income.

A good tax advisor helps you understand how to manage your investments and income tax for the 60% rule.

Note: The minimum wealth tax amount you’ll pay is 20% of the assessment, even if the 60% rule drops you below this figure.

New Solidarity Tax – 2024

The Spanish Ministry of Finance has announced the ‘impuesto de solidaridad a las grandes fortunas‘ as a temporary measure for 2023 and 2024. It will only apply to individuals with net worldwide assets over €3,000,000 who are tax residents in Spain.

Important: You won’t pay both the solidarity tax and wealth tax. If you qualify for the solidarity payment, this will include that liability.

The tax is progressive, so the percentage payable will increase with asset value. Estimates are that the Solidarity Tax will impact around 0.1% of Spanish taxpayers.

The government offers deductions similar to those for the wealth tax. Everyone gets a €700,000 deduction plus €300,000 for a main home in Spain. Other deductions, including qualifying business, may be available. This means that for most people, a minimum of € 4,000,000 will be the base for solidarity tax liability.

So, the Solidarity Tax rates (after deductions) are as follows:

From	To	Tax Rate
–	€ 3,000,000	0%
€ 3,000,001	€ 5,347,998	1.7%
€ 5,347,999	€ 10,695,996	2.1%
€ 10,695,997	Upward	3.5%

The Spanish government says this tax law will be temporary and will not be retained after 2024.

Note: This is a central tax, so there will not be regional variations.

Need Help With Your Wealth Tax?

This is a complicated tax with many variables. The inclusions, deductions, 60% rule, and autonomous regional variations make calculating what you’ll owe complex. For this reason, we recommend speaking to a good Spanish Tax advisor. They’ll understand how to minimize the amount and pain of the Wealth Tax in Spain.

FAQ – Wealth Tax in Spain