Wealth Tax is an annual tax that may apply to both Spanish residents and non-residents, depending on the value of their assets and their personal circumstances.
Do I Have to Pay Wealth Tax in Spain?
Although the tax was abolished in 2008, it was reintroduced in 2011 on a temporary basis and remains applicable under current legislation.
Non-Residents
If you are not tax resident in Spain, Wealth Tax generally applies only to your assets located in Spain, such as property and certain investments.
Each taxpayer benefits from a general exemption of €700,000, meaning that Wealth Tax is usually payable only if the value of your taxable assets in Spain exceeds this threshold.
Spanish Residents
If you are tax resident in Spain, Wealth Tax may apply to your worldwide assets, not just those located in Spain.
In addition to the general exemption, your main residence may qualify for an exemption of up to €300,000, provided the relevant legal requirements are met.
Regional Differences
The rules relating to Wealth Tax vary depending on the Autonomous Community in which you are tax resident.
Each region can set its own allowances, tax rates and reliefs, and some regions currently apply a 100% tax rebate, meaning that no Wealth Tax is payable in certain circumstances.
How We Can Help
Whether you are a resident or non-resident, our team can assess your individual circumstances, determine whether Wealth Tax applies to you and assist with any tax declarations that may be required.
Need advice about Wealth Tax in Spain? Contact our team for personalised assistance.
