Spanish wealth tax catches expats by surprise more than almost any other levy — partly because it does not exist in the UK or US, partly because the rules change radically depending on the autonomous community you live in. Here is what residents on the NLV, DNV and Beckham regime need to know, plus how non-resident property owners are now caught by the new Solidarity Tax.
Get a Business or Health Quote WhatsApp Our TeamImpuesto sobre el Patrimonio (IP) is a yearly tax on the net value of your assets as of 31 December. Spanish tax residents are taxed on their worldwide wealth; non-residents are taxed on their Spanish-situated assets only. The base law is Ley 19/1991 ↗, but the autonomous communities have huge power over the final bill — they can raise the allowance, change the rates, or wipe out the tax entirely with a 100% bonificación.
The national base allowance is €700,000 per person, plus an additional €300,000 main-home exemption for residents. Above that, progressive rates run from 0.2% to 3.5% on the national scale (regions can deviate). Married couples are taxed individually, not jointly, so a couple effectively gets €2,000,000 of allowances before any tax kicks in — once you correctly split assets.
From 2023 onwards the picture changed: Ley 38/2022 ↗ introduced the Impuesto Temporal de Solidaridad de las Grandes Fortunas ("Solidarity Tax"), a national overlay that taxes net wealth above €3m even where the region has bonificado wealth tax to zero. Madrid residents who used to pay nothing now pay this national tax instead — and the rules apply equally to non-residents with Spanish assets above the threshold. Both filings go through Agencia Tributaria ↗.
Wealth tax sits at the intersection of national law, regional rules and the new Solidarity Tax. The mechanics are not complicated once you understand which lever each layer pulls.
If you spend more than 183 days a year in Spain, or your "centre of vital interests" sits in Spain (typically because your family or main business is here), you are tax-resident. Resident wealth tax catches your worldwide property, investment accounts, businesses, art, jewellery, vehicles, life policies with surrender value and crypto — not just your Spanish assets.
Non-residents who own Spanish property, Spanish bank accounts above the allowance or shares in Spanish companies are within scope. They get the €700,000 allowance but generally not the €300,000 main-home exemption (a holiday home is not your main home). Filings go through Agencia Tributaria's non-resident portal ↗.
The Comunidad de Madrid eliminated wealth tax in 2008 with a 100% bonificación, and Andalucía did the same in 2022. Until 2023 that made Madrid and Marbella effectively wealth-tax-free. Now the national Solidarity Tax claws back wealth above €3m at 1.7%–3.5%, regardless of region. See Madrid Hacienda ↗.
Cataluña's threshold is just €500,000 (not €700,000), and top rates reach 3.48%. The Balearic Islands and Valencia apply the national scale with their own twists — material bills can start from €1m–€1.5m of net assets. See ATC Cataluña ↗.
Expats on the Régimen Especial de Trabajadores Desplazados (the "Beckham Law") are taxed as non-residents for income tax — and that flows through to wealth tax. They pay IP only on Spanish-situated assets, not worldwide wealth. For high-net-worth international hires this is one of the regime's biggest, least-discussed benefits.
Spain caps the combined burden of personal income tax (IRPF) and wealth tax at 60% of taxable income. If your wealth tax + income tax would exceed this, the wealth tax bill is reduced — but never below 20% of the originally calculated wealth tax. This is the planning lever every wealthy expat needs to understand.
Patrimonio sounds abstract until you see it applied to actual expat households. These are the situations we see most often — and how the bill plays out in each.
Most wealth tax disasters stem from one of these six errors — not from the tax itself but from a misunderstanding of how the resident, regional and Solidarity layers interact.
Wealth tax planning sits inside a bigger picture: residency visa requirements, private healthcare cover, business structuring and family protection. The right insurance is what underpins the visa application that lets you live here in the first place — and what protects the assets you've worked to build.
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Wealth tax is one piece of the expat tax picture. Make sure the rest of your planning, residency and cover is in order too.
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Read the guide ›Other essential reading for expats planning their Spanish tax position:
Whether you are arriving on an NLV, DNV or Beckham regime, your residency visa starts with compliant Spanish health insurance — and the structure you choose affects your wealth tax exposure for years afterwards. We help expats get both pieces right. DGSFP-registered, English-speaking, 7 days a week.
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