Spain Wealth Tax Guide 2026 — Impuesto de Patrimonio (0.2-3.5%)

the Spanish wealth tax (Impuesto de Patrimonio — IP). The guide covers: the progressive rate scale (from 0.2% to 3.5%), the exemption thresholds (€700,000 general exemption plus €300,000 for the main residence), the assets subject to the tax (worldwide assets for residents, Spanish assets only for non-residents), the regional variations — notably Madrid's 100% bonificación (effectively exempting residents) and the higher rates applied in Cataluña and other regions, the valuation rules for real estate, securities (listed and unlisted), business assets, life insurance policies, and works of art, the relationship with the IRPF (wealth tax paid is deductible from IRPF up to certain limits), the filing requirements (Modelo 714, filed in June/July), the maximum tax liability cap (the conjunto IRPF + Patrimonio cannot exceed 60% of the IRPF tax base), and the recent legislative history (the tax was temporarily reinstated in 2011 and has been maintained since, with the permanent reintroduction through the Ley de Patrimonio).

The Impuesto de Patrimonio is an annual tax on net wealth (assets minus debts) as of 31 December. It is a state-level tax with administration transferred to the autonomous communities, which have significant power to set rates and exemptions. All amounts in Euros (EUR). For related reading, see our Personal Tax Guide → and Property Tax Guide →.

Overview

Nature of the tax: The Impuesto de Patrimonio (IP) is a direct, annual, and progressive tax on the net wealth of individuals. It is assessed on the taxpayer's assets and rights minus their deductible debts and obligations, as of 31 December each year.
Legal basis: The tax is governed by Ley 19/1991, de 6 de junio, del Impuesto sobre el Patrimonio, and its implementing regulations. The tax was reinstated in 2011 (after being abolished in 2008) and has been extended annually. It became a permanent tax again from 2023.
Relationship with IRPF: Wealth tax paid is deductible from the IRPF general tax base, but the combined tax burden (IRPF + Patrimonio) is capped at 60% of the IRPF general tax base (the límite conjunto). Any excess wealth tax is carried forward to future years (up to 5 years).

Who Pays

Residents: Individuals who are tax resident in Spain are subject to wealth tax on their worldwide net assets (assets everywhere in the world minus debts everywhere in the world). The €700,000 exemption and all allowances apply.
Non-residents: Individuals who are not resident in Spain but own assets or rights in Spain that exceed €700,000 in value are subject to wealth tax on those Spanish-situated assets only. They cannot claim the €300,000 main residence exemption (since it is not their habitual residence) but can claim the general €700,000 exemption.
Temporary residents: Under the Beckham Law regime, expatriates opting for the special tax regime may be exempt from wealth tax during the first 5 years of residency (the Beckham Law typically exempts them from wealth tax on assets acquired before their arrival in Spain, though post-arrival assets may be subject).

Exemption Thresholds

General exemption — €700,000: The first €700,000 of net wealth is exempt from the tax. This is a personal allowance per individual. For married couples filing separately, each spouse gets their own €700,000 exemption.
Main residence — €300,000: An additional exemption of up to €300,000 applies to the value of the taxpayer's main residence (vivienda habitual). This is added to the €700,000 general exemption, giving a combined effective exemption of up to €1,000,000 for a taxpayer who owns their primary home.
Business assets exemption: Assets used in a business activity (the empresa familiar) and shareholdings in companies (at least 5% or a controlling stake where the taxpayer is involved in management) may be exempt if they constitute the taxpayer's primary economic activity. This exemption encourages retaining family businesses.

Progressive Rates

0.2%: Up to €167,129 (first bracket after exemptions).
0.3%: From €167,130 to €334,253.
0.5%: From €334,254 to €668,500.
0.9%: From €668,501 to €1,337,000.
1.3%: From €1,337,001 to €2,673,999.
1.7%: From €2,674,000 to €5,347,998.
2.1%: From €5,347,999 to €10,695,996.
3.5%: Above €10,695,996 (the maximum marginal rate).

Regional Variations

Madrid: The Comunidad de Madrid applies a 100% bonificación (full rebate) on the wealth tax liability. This means residents of Madrid pay effectively €0 in wealth tax, regardless of their net wealth. This has made Madrid a very attractive location for high-net-worth individuals.
Andalucía: Andalusia also introduced a 100% bonificación on wealth tax, aligning itself with Madrid. Residents of Andalucía are effectively exempt from the tax at the regional level.
Cataluña: Catalonia applies the full progressive rate scale without any significant bonificación. Due to high property values in Barcelona and the Costa Brava, many Catalan residents face substantial wealth tax bills. The combination of high IRPF rates and wealth tax makes Cataluña one of the most heavily taxed regions for wealthy individuals.
Comunidad Valenciana: The Valencian Community applies the state rate scale without a bonificación. There is no full exemption, though the region has maintained the state-level exemptions.
Other regions: Some regions (like Extremadura, Castilla-La Mancha, and others) have maintained the standard rate scale without a 100% bonificación. Taxpayers should check their specific CCAA's legislation, as rates and exemptions vary significantly. Galicia, for example, has a partial bonificación.

Valuation Rules

Real estate: Valued at the higher of: (a) the acquisition cost, (b) the cadastral value (valor catastral), or (c) the value determined by the AEAT for other tax purposes. For property purchased recently, the acquisition price generally applies.
Securities: Listed securities are valued at the average trading price in the fourth quarter. Unlisted securities are valued based on the theoretical net equity (valor teórico) determined by the company's latest approved balance sheet.
Business assets: Assets used in a business are generally exempt (see above). For non-exempt business assets, the valuation is based on the net asset value.
Life insurance: Life insurance policies are valued at the mathematical provision (provisión matemática) as of 31 December. For temporary insurance, the surrender value applies.
Bank accounts and deposits: Valued at the average balance in the fourth quarter, or the balance as of 31 December if higher.
Art and antiques: Valued at market value. Works of art and antiques are generally subject to the tax (unless exempt under specific rules). Jewellery, precious stones, and luxury items are included at market value.

Filing (Modelo 714)

Modelo 714: The wealth tax return is filed using Modelo 714. The deadline is the same as the IRPF deadline: typically between April and 30 June of the year following the tax year (for the 2025 tax year, the deadline is 30 June 2026).
Combined filing: Many taxpayers file the wealth tax return simultaneously with their IRPF return. The AEAT's Renta Web platform allows taxpayers to complete and file both returns together.
Obligation to file: You must file Modelo 714 if your gross assets (before deducting debts and exemptions) exceed €2,000,000 or if your net wealth (after exemptions) results in a positive tax liability.

FAQ

Is the wealth tax permanent or temporary?

The Impuesto de Patrimonio was originally abolished in 2008, reinstated as a temporary measure in 2011, and was extended annually for over a decade. From 2023, it has been maintained as an indefinite permanent tax. While some political parties have proposed its abolition, it remains in force for 2026.

Can I avoid wealth tax by moving to Madrid?

Yes, residents of Madrid benefit from a 100% bonificación on wealth tax, making their effective liability €0. Andalucía also offers a full bonificación. However, becoming a resident of these regions requires genuine relocation — the AEAT may challenge artificial residence changes if the taxpayer maintains their centre of economic interests elsewhere.

How is wealth tax calculated on jointly owned property?

Each co-owner (e.g., a married couple who own their home 50/50) declares their proportional share. Each spouse gets their own €700,000 general exemption and can claim their portion of the €300,000 main residence exemption. For a married couple with a €1,000,000 home and other assets of €800,000, the combined exemption can cover a significant portion.

Can I deduct debts from my gross assets?

Yes, debts and obligations (mortgages, personal loans, credit card balances) are deductible from gross assets when calculating net wealth. For example, if you own a property worth €500,000 with a €200,000 mortgage, you declare the property at €500,000 and deduct the €200,000 mortgage. Only debts that exist as of 31 December are deductible.

Are cryptocurrencies subject to wealth tax?

Yes, cryptocurrencies and other digital assets are considered property and must be declared in the wealth tax return at their market value on 31 December. The AEAT has specifically increased scrutiny of crypto holdings in recent years, and Modelo 172 (the specific crypto information return) must also be filed if you hold crypto assets above certain thresholds.

Disclaimer

This guide provides general information about Spanish wealth tax for the 2026 tax year. Tax laws, rates, and regional variations may change. The information does not constitute professional tax advice. All individuals should consult with a qualified Spanish tax advisor (asesor fiscal) for advice tailored to their specific financial situation.