Wealth Tax in Spain
Wealth Tax Spain Calculator
The Wealth Tax Spain (officially known as Impuesto sobre el Patrimonio) is a yearly tax on your net assets if they exceed a certain threshold. It applies to Spanish residents and non-residents, and yes — it can be quite a surprise if you don’t plan for it.
You’ve bought property in Spain or made investments here — but suddenly you hear about something called the Wealth Tax. Is it real? Do you have to pay it? How much could it cost you? You're not alone. Many expats, non-residents, and even Spanish residents are unsure whether Wealth Tax in Spain applies to them.
In SpainTax, we'll break it down in plain English: what it is, who’s affected, how much you might pay, and how to use a Wealth Tax Spain calculator to make sense of it all.
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What is Wealth Tax in Spain?
Wealth Tax is a personal tax on net assets, calculated annually on everything you own on December 31st. The tax is designed to ensure that high-net-worth individuals contribute more to public finances. Though it was abolished in 2008, it was reintroduced temporarily in 2011 and has remained in force ever since.
Who has to pay Wealth Tax in Spain?
There are two main groups:
1. Tax Residents in Spain
They must declare their total worldwide assets, including:
- Real estate (in Spain and abroad)
- Bank accounts, savings, and stocks
- Vehicles, art, jewelry, valuable collections
2. Non-Residents
They only pay tax on assets located in Spain, such as:
- Property in Spain
- Spanish bank accounts
- Shares in Spanish companies
You are considered a tax resident in Spain if you spend more than 183 days a year in the country or if your main economic interests are here.
Exemptions and thresholds
You don’t automatically have to pay Wealth Tax just because you own assets. Spain allows for personal exemptions:
- €700,000 per person is exempt at the national level
- Your primary residence is exempt up to €300,000
Each autonomous region (like Catalonia or Madrid) can set its own rules, with different thresholds and rates.
Example: If your assets total €1.2 million, but €300,000 is your main home, and the first €700,000 is exempt — you’d only be taxed on €200,000.
How is Wealth Tax Calculated?
Here’s how it works step-by-step:
1. Calculate gross assets
Add up the value of everything you own:
- Property (use the highest value between cadastral, purchase price, or tax authority-assessed)
- Bank balances on Dec 31 and average Q4 balance
- Stocks and investments at year-end market value
2. Subtract debts
If you have outstanding mortgages or loans tied to your assets, you can deduct them.
3. Apply exemptions
Subtract the relevant exemptions for your situation and region.
4. Apply the tax rate
Wealth Tax is progressive. The national rates range from:
- Net Taxable Wealth (€): 0 – 167,129 / Tax Rate: 0.2%
- Net Taxable Wealth (€):167,129 – 334,252 / Tax Rate: 0.3%
- Net Taxable Wealth (€):334,252 – 668,500 /Tax Rate: 0.5%
- Net Taxable Wealth (€):Over 10.7 million / Tax Rate: 3.5%
Some regions apply different rates or surcharges, so your location matters.
When and how do you file?
You must file the Modelo 714 tax form annually between April and June, along with your income tax (IRPF) return.
Even if you don’t owe anything, you must file if your gross assets exceed €2 million, even if exemptions reduce your net tax to €0.
What if you don’t file?
Not declaring can lead to:
- Fines starting from €100
- Late payment interest
- Larger penalties for deliberate omission or fraud
If you’re unsure whether you need to file, the best thing to do is ask a tax expert — especially because regional rules vary widely.
Want to avoid mistakes? Try our Wealth Tax Spain Calculator
Manually calculating Wealth Tax is tricky — especially if you own assets across countries or in different Spanish regions. That’s why we built the SpainTax Wealth Tax Calculator — a free, instant tool to estimate how much you might owe.
With it, you can:
- Check if you need to file
- Get an estimate of how much tax you might owe
- Avoid surprises or costly penalties
Do foreigners with property in Spain pay this tax?
Yes. Non-residents must pay Wealth Tax on Spanish-located assets if their value exceeds the exemption threshold.
Does Wealth Tax apply every year?
Yes, it is an annual tax, based on your net assets as of December 31.
Is it only for real estate?
No — it covers all personal wealth: bank savings, stocks, cars, art, and more.
Which regions have higher rates?
Regions like Catalonia, Valencia, and Extremadura tend to have lower exemptions and higher tax rates than the national average.
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Should you be worried about Wealth Tax in Spain?
If your total assets in Spain (or worldwide, if you’re a resident) are close to or above €1 million, it’s definitely worth checking. Wealth Tax in Spain doesn’t affect everyone — but for high-value property owners or expats with investments, it can make a real difference.
Don’t guess — calculate. Use our Wealth Tax Spain Calculator, or better yet, speak directly with a tax expert. At SpainTax, we specialize in helping residents, non-residents, and foreign investors navigate Spain’s complex tax system. We can review your situation, suggest optimizations, and even handle your filing.
Got questions? Contact us at SpainTax — and get peace of mind with expert tax guidance.
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