Spain: Wealth tax, what is taxed and what is not

Spain taxes the net worth of individuals annually, as of December 31st. Those habitually resident in Spain are subject to personal liability. Non-residents are only liable for assets and rights located, exercisable, or enforceable in Spain. The Spanish tax authority's handbook generally stipulates a minimum tax-exempt threshold of €700,000, and exempts the value of one's primary residence up to €300,000. The autonomous communities may modify this minimum tax-exempt threshold.

This page reads from the practical guide to wealth tax for the 2025 campaign (fiscal year 2025). It does not provide the tax brackets: the excerpt from the guide contains neither tax brackets nor rates. It also does not provide valuation rules, 2026 figures, or the tax amount.

Who is subject

To determine habitual residence, the manual refers to Chapter 2 of the Practical Guide to Income Tax. The two criteria (183 days, center of economic interests) are presented on our page about tax residence in Spain.

For a non-resident, the declaration only covers assets and rights located, exercisable, or enforceable in Spain. The manual also stipulates that the custodian or manager of the non-resident's assets or rights is jointly and severally liable. The manual presents the regional minimum tax-exempt amounts as approved for residents of each region. The specific case of non-residents is not addressed on this page: this should be verified with the relevant source, without drawing any definitive conclusions.

What is taxed: net worth

The manual defines a natural person's net worth as the sum of all assets and rights of economic value held by that individual, less any encumbrances or liabilities that diminish their value, as well as any debts. It is a direct, personal tax levied on net worth.

The taxable event is December 31st of each year: the tax is levied on the assets you own on that date. The valuation rules for each category of assets (real estate, accounts, securities, insurance policies) are not included in the extract consulted. This page does not state any such rules.

What is exempt

The four conditions for participation

The manual requires, cumulatively:

1. that the entity carries out an economic activity; ;
2. that participation reaches at least 5 % individually, or 20 % with the spouse, ascendants, descendants or collateral relatives of the second degree; ;
3. that the taxpayer actually performs management functions in the entity; ;
4. that the remuneration received represents more than 50 % of all its net returns from work and economic activities.

These four conditions are taken from the manual without their detailed application. For a manager, a minority shareholder, or a holding company, they are examined on a case-by-case basis.

The minimum tax exemption and the autonomous communities

As a general rule, the minimum tax-exempt amount is €700,000. Autonomous communities may assume regulatory powers regarding this minimum; otherwise, the national standard applies. The 2025 campaign handbook cites two examples:

• La Rioja: 700,000 euros, effective from January 1, 2025.
• The Valencian Community: 1,000,000 euros as a general rule.

The manual also indicates that communities can influence the rate, deductions, and bonuses. Amounts for other communities are not included here. No 2026 figures are provided here.

The wealth tax

The manual mentions the temporary wealth tax (ITSGF), the duration of which was extended by Royal Decree-Law 8/2023 of December 27. For 2025, it indicates that Catalonia and Galicia are maintaining transitional tax rates, and that the Regions of Murcia and La Rioja have introduced transitional tax credits for as long as the ITSGF remains in effect. The ITSGF threshold and tax rates are not included in the excerpt consulted.

Declare: from when and how

The manual stipulates that taxpayers must file a return in two cases: if their tax liability is due, or, failing that, if the value of their assets or rights exceeds €2,000,000. For this test, the manual indicates that the value of assets and rights is assessed without deducting charges, encumbrances, or personal debts and obligations.

For the 2025 campaign, the declaration was filed between April 8 and June 30, 2026 inclusive; this deadline has passed. It must be submitted electronically (form 714). The dates for the following campaign are not listed here.

Wealth tax in Spain: a numerical example (fictitious profile)

Situation. A French citizen, a fictitious profile, has been a habitual resident of Spain for several years. His primary residence is worth €450,000, and he has resided there continuously for over three years. He holds €600,000 in financial investments. He has no debts. It is assumed that the general tax-exempt minimum of €700,000 applies to him.

Issue. What portion of his assets remains above the minimum tax-exempt threshold, and must he declare it?

Strategy. He excludes the exempt portion of his housing (up to €300,000), adds up the remainder and investments, then applies the minimum exempt amount. He then compares the value of his assets to the €2,000,000 threshold.

Result.

There remains €50,000 above the minimum tax-exempt threshold. Tax is not calculated here; the tax brackets are not shown. If the tax is payable, the manual requires a declaration, even if the value of the assets is less than €2,000,000. With a property worth €280,000, fully exempt, the taxable assets would be €600,000, and the tax base after the minimum would be zero. With a minimum of €1,000,000 (the general case in the Valencian Community), the tax base would also be zero for the initial profile. This profile is hypothetical; it illustrates the mechanism and does not predict the outcome for your specific situation.

Wealth tax in Spain: what changes depending on your situation

• Your usual residence, and the autonomous community to which you are attached.
• The value and nature of your assets and debts as of December 31st.
• The usual nature of your accommodation and the duration of your residence.
• Your role in the companies you own, for the exemption of shareholdings.
• Your community's rule on the minimum exempt amount, the rate, deductions and bonuses.
• Your situation with regard to France, if you keep assets there.

The rule depends on your situation; check before deciding. No tax outcome is guaranteed.