Do non-residents pay wealth tax in Spain?
Only where net Spanish assets exceed the regional allowance on 31 December. Most regions allow €700,000 per person, Catalonia and Valencia €500,000, and the Balearics €3m. Madrid and Andalusia rebate the tax entirely. Mortgage debt secured on the property is deducted, so a €1.2m villa with a €700,000 Spanish mortgage has a net base of €500,000 and usually no liability. Above €3m of net wealth the state solidarity tax applies at 1.7%–3.5% even in rebate regions.
- Each owner has their own allowance, so a couple typically shelters €1.4m.
- Only Spanish assets count for non-residents, not worldwide wealth.
- Financing a purchase reduces the taxable base pound for pound.
Key takeaways
- Non-residents are taxed only on Spanish-situated assets, valued at 31 December.
- Most regions apply a €700,000 personal allowance; Catalonia and Valencia use €500,000.
- Madrid and Andalusia apply a 100% rebate, so no regional wealth tax is payable.
- The state solidarity tax still catches net wealth above €3m at 1.7%–3.5%.
- Mortgage debt secured on the Spanish property is deducted from the taxable base.
- Joint ownership doubles the allowance, since each owner has their own.
Wealth tax allowances and rates by region (2026)
| Region | Personal allowance | Rate band | Position for non-residents |
|---|---|---|---|
| Madrid | €700,000 | — | 100% rebate; no regional wealth tax payable |
| Andalusia | €700,000 | — | 100% rebate; no regional wealth tax payable |
| Catalonia | €500,000 | 0.21% – 3.48% | Lowest allowance and highest top rate in Spain |
| Valencia / Costa Blanca | €500,000 | 0.25% – 3.50% | Payable; low allowance |
| Balearics | €3,000,000 | 0.28% – 3.45% | High allowance; most single homes fall outside |
| Canary Islands | €700,000 | 0.20% – 3.50% | State scale applies |
| Murcia | €700,000 | 0.24% – 3.00% | Payable on the state-style scale |
| Galicia | €700,000 | 0.20% – 2.50% | Partial rebate of 50% applies |
Non-residents may elect to apply the rules of the autonomous community where the greater part of their Spanish assets sits. Where all your Spanish property is in one region, that region's rules apply.
The state solidarity tax on large fortunes
Introduced to neutralise the regional rebates, the Impuesto de Solidaridad applies at state level to net wealth above €3m. Any regional wealth tax paid is credited against it, so in Catalonia it rarely bites, while in Madrid and Andalusia it is the tax that actually applies.
| Net wealth band | Rate |
|---|---|
| Up to €3,000,000 | Nil |
| €3,000,000 – €5,347,998 | 1.7% |
| €5,347,998 – €10,695,996 | 2.1% |
| Above €10,695,996 | 3.5% |
How a mortgage reduces the taxable base
Wealth tax is charged on net assets. Debt secured on the Spanish property is deducted in full, which makes financing a purchase materially more efficient than paying cash for buyers near a threshold.
| Scenario (Catalonia, single owner) | Property value | Spanish mortgage | Net base after €500,000 allowance |
|---|---|---|---|
| Cash purchase | €1,200,000 | Nil | €700,000 — tax payable |
| 65% LTV mortgage | €1,200,000 | €780,000 | Nil — below the allowance |
| Joint ownership, cash | €1,200,000 | Nil | Nil — €500,000 allowance each |
This is one of the standard reasons international buyers finance in Spain rather than transferring the full purchase price — see Spanish mortgages for non-residents and equity release on an existing property.
Related guides
Frequently asked
Questions from readers
Do non-residents pay wealth tax in Spain?
Only on Spanish-situated assets, and only where their net value at 31 December exceeds the regional allowance — commonly €700,000 per person. Madrid and Andalusia rebate the tax entirely, though the state solidarity tax can still apply above €3m.
What is the wealth tax allowance in Catalonia?
€500,000 per person, the lowest in Spain, with rates running from 0.21% to 3.48%. A couple owning jointly shelters €1m of net Spanish assets before any liability arises.
Does Madrid charge wealth tax?
Madrid applies a 100% regional rebate, so no regional wealth tax is payable there. Net wealth above €3m is instead caught by the state solidarity tax at 1.7%–3.5%.
Does a Spanish mortgage reduce wealth tax?
Yes. Debt secured on the Spanish property is deducted from the taxable base, so a €1.2m property with a €780,000 Spanish mortgage has a net base of €420,000 — usually below the regional allowance.
When is the Spanish wealth tax return due?
Modelo 714 is filed between April and 30 June for the previous calendar year, on the position as at 31 December. The solidarity tax return, Modelo 718, is filed during July.
Do joint owners each get an allowance?
Yes. Wealth tax is personal, so each owner is assessed on their share with their own allowance. A couple owning 50/50 in a €700,000-allowance region shelters €1.4m of net Spanish assets.
Is worldwide wealth taxed for non-residents in Spain?
No. Non-residents are assessed only on assets located in Spain. Spanish tax residents are assessed on worldwide wealth, which is why the residence test matters far more than the property's value.