Spain remains one of the few countries in Europe where a tax on capital is actually collected, and since 2022 there have been two of them. The classic Impuesto sobre el Patrimonio (IP) is ceded to the autonomous communities together with the power to zero it out through a bonificación. The state Impuesto Temporal de Solidaridad de las Grandes Fortunas (ITSGF) arrived precisely as an answer to that zeroing, and takes what the region let go.
The practical question therefore splits in two: how large the payment is, and who receives it. The answer is assembled from the design of both taxes, the regional map, the rules for non-residents, and the combined tax cap that most often fixes the final figure.
Key parameters of the regime:
| Parameter | Value |
|---|---|
| Object | IP: net wealth at 31 December, ceded to the regions. ITSGF: net wealth above €3,000,000, state tax, not ceded. |
| Scale | IP: 0.2%–3.5% (state scale, subsidiary; regions may set their own). ITSGF: 0% to €3m base, then 1.7%, 2.1%, 3.5%. |
| Exempt minimum | IP: €700,000 (art. 28 Dos) absent a regional rule; home exempt to €300,000/owner. ITSGF: same €700,000; effectively bites from ≈€3.7m. |
| Who pays | Resident: worldwide wealth. Non-resident: Spanish assets only (art. 5 Uno); unlisted structures ≥50% Spanish property also count (art. 5 Uno b). |
| Combined cap | Capped at 60% of IRPF bases (IRPF+IP+ITSGF); reduction limited to 80% of quota. Since 2025 extended to non-residents by STS/TEAC rulings. |
| Returns | IP: Modelo 714, 8 April–30 June 2026; filed even at zero tax above €2m assets. ITSGF: Modelo 718, 1–31 July, only if payable. |
Two taxes, one object
Ley 19/1991 taxes an individual's net wealth at 31 December: assets less debts and encumbrances. The tax is ceded to the regions, which set the mínimo exento, the scale, deductions and bonificaciones, while the state rules apply on a subsidiary basis wherever a region has legislated nothing.
Ley 38/2022 created the ITSGF as a direct personal tax complementary to the IP, with net wealth above €3,000,000 as its object (art. 3 Uno and 3 Tres). It applies throughout Spain outside the foral territories and cannot be ceded to the regions (art. 3 Dos). Exemptions and the class of taxpayers are borrowed from the IP wholesale (art. 3 Cuatro and 3 Cinco).
The ITSGF was formally introduced for two periods, but disposición adicional 5.2 of Real Decreto-ley 8/2023 extended it until wealth taxation is reviewed within the reform of regional financing. That extension carries no end date.
The base: allowances and exemptions
The IP allowance is €700,000 where a region has set none of its own (art. 28 Dos). The same figure reaches non-residents taxed by obligación real (art. 28 Tres) — a detail secondary sources routinely lose. In the ITSGF the allowance is likewise €700,000 (art. 3 Nueve).
The main residence is exempt up to €300,000 per owner (art. 4 Nueve), so spouses on a jointly owned home each apply it. Real estate is valued at the highest of three figures: the cadastral value, the value determined or checked by the administration for other taxes, and the acquisition price (art. 10 Uno).
The principal planning instrument is the family-business exemption (art. 4 Ocho). Shares in a company qualify on three cumulative conditions: the company is not patrimonial, meaning its activity goes beyond managing a portfolio of securities or property; the taxpayer holds at least 5% individually or 20% together with a spouse, ascendants, descendants and relatives to the second degree; and the taxpayer or someone in that family group performs management functions and draws from them more than half of their business, professional and employment income. Only the portion of the share value that corresponds to assets used in the activity is exempt.
Scales and the regional map
The state IP scale runs from 0.2% to 3.5%, with the top band starting at a taxable base of €10,695,996 (art. 30 Dos). The ITSGF scale is simpler: 0% up to €3,000,000 of base, then 1.7%, 2.1% and 3.5% at the same breakpoints (art. 3 Once). The zero first band plus the €700,000 allowance means the ITSGF starts to bite at roughly €3.7m of net wealth.
The regions have used their powers differently. The figures come from the Ministry of Finance publication Tributación Autonómica. Medidas 2026, updated to 29 April 2026.
| Region | Mínimo exento | IP bonificación | What happens while the ITSGF is in force |
|---|---|---|---|
| Madrid | €700,000 | 100% since 2009 | The bonificación is disapplied; in its place, the difference between the IP cuota íntegra and the ITSGF cuota íntegra (DT 7ª of Decreto Legislativo 1/2010, added by Ley 12/2023 of 15 December) |
| Andalusia | €700,000; €1.25–1.5m on disability | 100% since 2022 | The regional scale and the bonificación are switched off, and the difference-based bonificación applies (DT 5ª Ley 5/2021) |
| La Rioja | €700,000 | 100% since 2025 | The same difference mechanism |
| Cantabria | €700,000 | 100% since 2024 | The bonificación drops away above €3m of net wealth after the allowance; the difference mechanism then applies |
| Extremadura | €500,000 | 100% since 2023 | No difference clause — the payment goes to the state through the ITSGF |
| Galicia | €700,000 | 50% | The bonificación is reduced by the ITSGF payable for the same year |
| Catalonia | €500,000 | Targeted only (forest holdings, 95%) | A specific scale with a top band of 3.48% above €20m of base |
| Valencia | €1,000,000 | Targeted only (start-ups) | A scale above the state one in every band except the last |
| Balearic Islands | €3,000,000 | 90% on cultural consumption goods | The high allowance lifts most residents out of the IP up to the ITSGF threshold |
Murcia applies the same difference-based bonificación as Madrid and Andalusia. Catalonia, Asturias and Aragón grant 99% on assets held in a specially protected estate for a person with a disability, while the Canary Islands and Castilla y León exempt such assets outright.
How the top-up works
The difference-based bonificación is built so that the money stays with the region. The taxpayer computes the IP cuota íntegra after the 60% cap, computes the ITSGF cuota íntegra after its own cap, and reduces the regional tax by the difference where that difference is positive. Art. 3 Quince Ley 38/2022 then allows the IP actually paid to be deducted from the ITSGF. The total burden equals the larger of the two figures, and the region collects it.
Extremadura shows the opposite outcome: its 100% bonificación survives without any such clause, so the IP falls to zero and wealth above the threshold is taxed by the ITSGF for the state.
Resident, non-resident, and ownership through a structure
A resident pays by obligación personal on worldwide wealth. A non-resident pays by obligación real, on assets located in, exercisable in, or to be performed in Spain (art. 5 Uno).
Ley 38/2022 closed a long-standing route: since 29 December 2022, shares in any unlisted structure whose assets consist at least 50% directly or indirectly of Spanish real estate count as Spanish assets, with book values replaced by market values for the test (art. 5 Uno b). Holding a Marbella flat through a Luxembourg or Uruguayan company no longer removes it from Spanish capital taxation.
A non-resident may apply the rules of the autonomous community where the greatest value of their Spanish assets lies (disposición adicional cuarta Ley 19/1991). The right appeared for EU and EEA residents in 2015 and was extended to all non-residents by art. 5.3 Ley 11/2021. It does not carry over to the ITSGF, which is a state tax and is not ceded.
The combined tax cap
The sum of the IRPF and IP cuotas íntegras cannot exceed 60% of the total IRPF taxable bases; the excess is taken off the IP, but the reduction is limited to 80% of its quota (art. 31 Uno Ley 19/1991). Gains on assets held for more than a year are left out of the computation, as is the part of the IP attributable to assets incapable of producing income taxable under the IRPF. Art. 3 Doce Ley 38/2022 repeats the construction for the trio of IRPF, IP and ITSGF.
On the face of the statute the cap is available only to taxpayers by obligación personal. The Spanish Supreme Court held in STS 1372/2025 of 29 October 2025 and STS 1402/2025 of 3 November 2025 that this distinction is discriminatory and contrary to the free movement of capital, and the TEAC extended the same conclusion to the ITSGF in resolutions of 18 December 2025 (RG 04119/2025 among them). For a non-resident with expensive Spanish property and little Spanish income the effect on the bill is several-fold.
Returns, deadlines and neighbouring duties
An IP return (Modelo 714) is filed by anyone whose tax comes out payable after all deductions and bonificaciones, and by anyone whose assets exceed €2,000,000 under the statutory valuation rules even where nothing is payable (art. 37 Ley 19/1991). For 2025 the window ran from 8 April to 30 June 2026 (Orden HAC/277/2026). The ITSGF is declared on Modelo 718 between 1 and 31 July (art. 3 Orden HFP/587/2023), and only where an amount is payable.
Beneficiaries of the Beckham regime pay IP and ITSGF by obligación real only, under the express wording of art. 93.1 LIRPF. Worldwide wealth comes into charge with the first year of ordinary IRPF. The ground is thinner for Modelo 720: the reporting rules attach to «personas físicas residentes en territorio español», and the exclusion of regime participants from filing it rests on DGT doctrine, while the text of art. 93.1 LIRPF speaks only of obligación real for IP. The information return itself draws its valuation of securities and policies from the IP statute. The gap between the two states is worked through in the piece on leaving the regime.
Q/A
Is Madrid still a region with no wealth tax?
Up to roughly €3.7m of net wealth, yes. Above that a payment arises in any event, and DT 7ª of Decreto Legislativo 1/2010 — the provision that Ley 12/2023 of 15 December added to it, published in the BOE as BOE-A-2024-5609 — is drafted so that it goes to Madrid through the IP. That one chain (the 100% bonificación in Decreto Legislativo 1/2010, displaced by DT 7ª while the ITSGF runs) is the citation to use; the several references circulating for the same rule all point at it. The duty to file Modelo 714 on assets above €2,000,000 survives the bonificación.
Does a non-resident pay wealth tax on a Spanish flat?
Only Spanish assets are counted, and the €700,000 allowance applies to them, so tax arises once those assets exceed that figure. The non-resident may apply the rules of the region holding the bulk of the assets and, since 2025, the combined 60% cap.
Does a foreign company shield the asset from Spanish capital tax?
Not where at least half of its assets are Spanish real estate and the shares are unlisted: such shares count as Spanish assets under art. 5 Uno b Ley 19/1991, and the test runs on market values. The rule took effect on 29 December 2022 and, because the tax accrues on 31 December, it already catches the 2022 tax period.
Are the IP and the ITSGF both payable?
Both are assessed, but the IP actually paid is deducted from the ITSGF under art. 3 Quince Ley 38/2022. The total equals the larger of the two; whether the region or the state receives it depends on whether the community has a difference-based bonificación.
How does the 60% cap work?
The IRPF, IP and ITSGF quotas together are capped at 60% of the IRPF taxable bases, and the reduction of the capital taxes cannot exceed 80% of their quota. Gains on assets held for more than a year are excluded from the computation, so selling an old asset in December does not improve the cap.
What changes on moving away from a low-tax region?
The tax follows tax residence at 31 December, so the region on the accrual date is what counts. Spanish regional financing law carries rules against artificial changes of residence, and the 2026 AEAT control-plan guidelines of 11 March 2026 announce particular scrutiny of changes of tax domicile where the taxpayer's corporate environment stays in the community of origin.