Spain's Impuesto sobre el Patrimonio (IP), governed by Ley 19/1991, is an annual net wealth tax on Spanish tax residents whose worldwide net assets exceed EUR 700,000. The progressive rate scale runs from 0.2% to 3.5%. Residents with a primary home in Spain benefit from an additional EUR 300,000 deduction, raising the effective entry threshold to EUR 1,000,000 for most homeowners.
The autonomous community where you register your tax domicile determines the regional rate applied. Madrid applies a 100% bonification, producing a zero effective regional rate. Non-residents and Beckham Law holders pay only on Spanish-sited assets — not worldwide assets. Above EUR 3,000,000 of net wealth, the national Solidarity Tax on Large Fortunes (ITSGF) applies at 1.7% to 3.5% under Ley 38/2022, regardless of autonomous community.
Spain has two distinct wealth levies in 2026: the Wealth Tax (IP, regional) and the Solidarity Tax on Large Fortunes (ITSGF, national, above EUR 3M). Understanding which applies — and how they interact — is the starting point for any asset planning.
Source: Ley 19/1991 + Ley 38/2022
Last verified: Jun 2026
What is Spain's Wealth Tax — and Who Pays It?
Spain's Impuesto sobre el Patrimonio (IP) is an annual tax on the net value of an individual's assets, assessed on the position at 31 December of each tax year. The taxable base is total assets minus liabilities, after exemptions.
The personal exemption of EUR 700,000 applies to all Spanish tax residents. Residents who own their primary residence in Spain benefit from an additional deduction of up to EUR 300,000, meaning a typical homeowner only enters IP territory once net assets exceed EUR 1,000,000.
Obligacion personal vs obligacion real: the residency distinction
Spanish tax residents pay IP in obligacion personal — their entire worldwide net asset base is in scope under Ley 19/1991. For the tests that determine Spanish tax residency, see the full overview in the Spain Tax Residency guide.
Non-residents with Spanish-sited assets pay IP in obligacion real — only assets located in Spain are included. The EUR 700,000 personal exemption does not apply to non-residents, though bilateral treaties may provide partial relief.
Beckham Law holders pay in obligacion real even though they are technically Spanish tax residents. For the duration of the Beckham regime, only Spanish-sited assets count for IP purposes — a material advantage for new arrivals with significant foreign portfolios.
What assets are exempt
Under Ley 19/1991, the main exemptions are:
- Primary residence: up to EUR 300,000 of the home's value is deducted before calculating taxable IP.
- Qualifying business assets in actively managed family businesses (the empresa familiar regime): shareholdings in closely-held companies where the taxpayer is actively involved and derives their primary income may be exempt under specific conditions. Independent specialist advice is required to assess eligibility.
- Certain pension rights and qualifying life insurance products.
- Spanish-classified artistic and cultural heritage items.
Standard investment portfolios, real estate beyond the primary residence, and liquid assets do not benefit from categorical exemption.
Spain Wealth Tax Rates and Thresholds: What the Numbers Look Like
The national rate scale under Ley 19/1991 is progressive, applied to net taxable base after exemptions:
| Net taxable base (after exemptions) | Marginal rate |
|---|---|
| EUR 0 – 167,129 | 0.2% |
| EUR 167,130 – 334,252 | 0.3% |
| EUR 334,253 – 668,499 | 0.5% |
| EUR 668,500 – 1,336,999 | 0.9% |
| EUR 1,337,000 – 2,673,999 | 1.3% |
| EUR 2,674,000 – 5,347,998 | 1.7% |
| EUR 5,347,999 – 10,695,996 | 2.1% |
| EUR 10,695,997+ | 3.5% |
These are marginal rates — only the wealth within each bracket is taxed at that rate. The structure is similar to an income tax bracket system applied to net asset value.
How autonomous communities modify rates
Each autonomous community can apply its own rate scale, modify the personal exemption, or apply a bonification. The national scale functions as a default. Where a community has enacted its own rules, those rules apply to its residents — producing material variation in effective IP across Spain.
The national Wealth Tax rate scale is a default that autonomous communities can override. Madrid's 100% bonification produces a zero effective rate for residents — but the national Solidarity Tax applies above EUR 3M regardless of region.
Source: Ley 19/1991 + Ley 38/2022
Last verified: Jun 2026
The Regional Variable: Madrid vs the Rest
For expats with significant net wealth, the autonomous community of registration is often the single most impactful planning variable within the Spanish tax system. The spread between regions can translate to tens of thousands of euros annually for portfolios between EUR 1M and EUR 5M.
Madrid's 100% bonification — what it means in practice
Madrid applies a 100% bonification on the Wealth Tax. A Madrid resident who calculates a theoretical IP liability — say, EUR 15,000 on a EUR 2M net portfolio — pays zero at the payment step. The bonification reduces the payment to zero, not the declared amount. This distinction matters for the Solidarity Tax credit mechanism below.
Other 100% bonification regions
Several other autonomous communities also apply 100% bonification as of the 2026 tax year: Andalusia, Cantabria, La Rioja, and others. Residents in any of these communities face zero regional IP on standard asset portfolios.
High-rate regions and the Catalonia comparison
Catalonia does not bonify the IP. Catalan residents pay the national scale plus Catalan-specific surcharges, with a combined top bracket that can reach approximately 3.48% on wealth above EUR 10.7M. For a Catalan resident with EUR 3M in net assets above the exemption threshold, the annual IP liability is in the range of EUR 20,000–30,000. The same position in Madrid: zero IP.
The Solidarity Tax offset mechanism — where the Madrid advantage narrows
The Solidarity Tax on Large Fortunes (ITSGF) allows regional IP actually paid to be credited against ITSGF liability, preventing double taxation between the two levies.
For a Catalan resident: IP paid in Catalonia reduces the ITSGF bill — the net total (IP + ITSGF) is lower than the raw rates suggest.
For a Madrid resident: zero IP paid means zero IP credit. The full ITSGF is due with no offset.
This narrows the Madrid advantage for portfolios above EUR 3M. Below EUR 3M, no ITSGF applies — Madrid's zero IP is a straightforward win. Above EUR 3M, the calculation requires the specific asset value and the community's rate to determine the true net position.
| Region | IP regional bonification | Effective regional IP | ITSGF above EUR 3M |
|---|---|---|---|
| Madrid | 100% | 0% | Full ITSGF due — zero IP credit available |
| Andalusia | 100% | 0% | Full ITSGF due — zero IP credit available |
| Cantabria | 100% | 0% | Full ITSGF due — zero IP credit available |
| Catalonia | None (national + Catalan rate) | Up to ~3.48% top bracket | ITSGF due minus Catalan IP paid — net total lower |
| Valencia | None (national scale) | National rates | ITSGF due minus Valencia IP paid |
| Basque Country / Navarre | Separate foral system | Varies by foral law | ITSGF interaction complex — specialist advice required |
Note: Basque Country and Navarre operate under separate foral tax systems (the Concierto and Convenio Economico respectively). Expats considering these regions should seek specialist advice on the foral rules specifically.
In Madrid, zero IP is paid — so zero IP credit offsets the Solidarity Tax. A taxpayer with EUR 5M net wealth in Madrid owes the full ITSGF on amounts above EUR 3M, with no IP credit to reduce it. This is the precise cost of a 0% IP region for high-net-worth portfolios.
Source: Ley 38/2022, ITSGF
Last verified: Jun 2026
The Solidarity Tax on Large Fortunes (ITSGF): What Expats Need to Know
The Impuesto Temporal de Solidaridad de las Grandes Fortunas (ITSGF) was introduced by Ley 38/2022. Despite the Temporal in its name, the AEAT confirmed in March 2026 that the ITSGF remains in force for the 2025 tax year; it is effectively permanent pending formal legislative reform. The Constitutional Court has confirmed its validity.
Thresholds, rates, and who it affects
The ITSGF applies to net wealth above EUR 3,000,000 — calculated on the same base as IP, subject to the EUR 700,000 personal exemption. The three rates under Ley 38/2022:
- 1.7% on net taxable wealth between EUR 3,000,001 and EUR 5,347,998
- 2.1% on net taxable wealth between EUR 5,347,999 and EUR 10,695,996
- 3.5% on net taxable wealth above EUR 10,695,996
To illustrate: a Madrid-based resident with EUR 5,000,000 in net assets (after the EUR 700,000 exemption) has EUR 2,000,000 above the EUR 3M threshold. At 1.7%, that produces an indicative ITSGF liability of approximately EUR 34,000. Zero IP in Madrid. Total annual wealth-related tax: approximately EUR 34,000.
Beckham Law holders and the ITSGF
Beckham Law holders pay IP in obligacion real (Spanish assets only). The same scope applies for ITSGF purposes — the tax base is limited to Spanish-sited assets during the Beckham regime. For expats arriving with substantial foreign portfolios, this can significantly limit initial ITSGF exposure. Once the Beckham regime ends after six years, the individual becomes a standard IRPF resident and worldwide assets re-enter scope.
In Madrid, the Wealth Tax is zero. The Solidarity Tax is not. For portfolios above EUR 3 million, where you live in Spain still matters — it just matters differently.
— ApexTax — Spain Wealth Tax Guide 2026
Planning Around Spain's Wealth Tax: Key Considerations
Choosing your autonomous community
For expats with net assets between EUR 700,000 and EUR 3,000,000, the autonomous community choice is binary: a 100%-bonification region eliminates IP entirely. A non-bonification region does not.
For portfolios above EUR 3,000,000, the ITSGF credit mechanism means the total tax load is not simply the sum of IP rate plus ITSGF rate. A detailed calculation for the specific asset value and community combination is needed before drawing conclusions.
Asset structuring and exemptions
Business assets in qualifying empresa familiar structures may benefit from IP exemption under Ley 19/1991 — specifically, shareholdings in closely-held companies where the taxpayer is actively involved and derives their primary income from the activity. This exemption is technically complex and requires specialist analysis.
Liquid assets (bank deposits, listed securities, funds) are generally included in the IP base at market value on 31 December.
The Beckham angle for new arrivals
For high-net-worth expats relocating to Spain, the Beckham Law offers a six-year window during which only Spanish-sited assets are in scope for both IP and ITSGF. This limits initial Wealth Tax exposure for arrivals with large foreign portfolios. Once Beckham expires, worldwide assets re-enter scope.
For Spain Digital Nomad Visa holders who may also qualify for Beckham, the interaction between visa type, Beckham eligibility, and Wealth Tax scope adds another planning dimension.
How ApexTax Helps
Spain's Wealth Tax and Solidarity Tax landscape involves two distinct levies, eight progressive brackets, material regional variation, and a crediting mechanism that makes straightforward comparisons misleading. For expats arriving with significant assets, the decisions made at the relocation planning stage — autonomous community of residence, Beckham timing, asset positioning in year one — have lasting annual consequences.
ApexTax works as a Cross-Border Relocation Strategist and Single Point of Contact. We design your relocation strategy with the full tax picture in mind — IP exposure, ITSGF applicability, Beckham timing, community selection — and coordinate with vetted Spanish tax advisors who provide the formal Wealth Tax advice and handle IP and ITSGF filings. ApexTax does not file tax returns, act as a licensed tax advisor, or provide formal tax advice. Those services are delivered by independent qualified professionals in our coordination network.
If you are planning a move to Spain with material net assets, modelling the Wealth Tax position before you register residency is always preferable to analysing it after.