Spain is one of the few European countries where a net wealth tax genuinely bites — and since 2023 there are two in parallel: the classic Impuesto sobre el Patrimonio (IP), devolved to the regions, and the state "solidarity tax" ITSGF, introduced precisely to override regional relief. Residents are taxed on worldwide assets, non-residents only on Spanish ones. Data as of July 2026.
Impuesto sobre el Patrimonio
The base law is Ley 19/1991. The state scale runs 0.2–3.5%, with the top rate from roughly €10.7m. The tax-free minimum (mínimo exento) is €700,000 unless a region sets its own; a main residence is additionally exempt up to €300,000.
Non-residents are taxed under obligación real — Spanish-situs assets only. A detail secondary sources routinely get wrong: the €700,000 allowance applies to non-residents as well — it is written directly into art. 28.Tres of Ley 19/1991. Since Ley 38/2022, non-residents — including those outside the EU/EEA — may elect the rules of the region where most of their Spanish assets sit.
ITSGF: the solidarity tax
Ley 38/2022 taxes net wealth above €3m:
| Net wealth | ITSGF rate |
|---|---|
| €3m — 5.35m | 1.7% |
| €5.35m — 10.7m | 2.1% |
| above €10.7m | 3.5% |
IP paid is credited against ITSGF — no double tax. Formally "temporary", the tax was extended indefinitely by RDL 8/2023, pending the reform of regional financing. The €700,000 allowance, initially reserved for residents, was extended to non-residents by the same RDL 8/2023.
The return is Modelo 718, filed July 1–31 of the following year; for 2025 an updated form applies under Orden HAC/652/2026 (AEAT).
Madrid, Andalusia and the regional mechanics
Madrid keeps its 100% IP bonificación, but since 2023 it is "variable" while ITSGF exists: the region waives only the part ITSGF would not capture. In practice, up to €3.7m net the bill is still zero; above, the payment survives — it simply flows to Madrid through IP rather than to the state through ITSGF (Cuatrecasas). Andalusia runs the same mechanics (Guía Fiscal).
| Region | IP relief | Net effect with ITSGF |
|---|---|---|
| Madrid | 100%, "variable" | zero up to ~€3.7m net; above — tax flows to the region via IP |
| Andalusia | 100% between €700k and €3m | above €3m — variable relief |
Non-residents: the 60% cap
Spanish law caps combined IRPF + IP + ITSGF at 60% of the IRPF bases. For decades non-residents were denied the cap. The Supreme Court ruled in October–November 2025 that this was discriminatory and breached the free movement of capital, and TEAC resolution 04119/2025 of 18 December 2025 confirmed that the 60% cap applies to non-residents too. For a non-resident holding substantial Spanish real estate with modest Spanish income, this cuts the bill dramatically.
Beckham regime holders pay IP and ITSGF on Spanish assets only for the entire life of the regime — worldwide wealth stays out of scope. The worldwide obligation switches on from the first year after the regime ends, together with Modelo 720.
Who is actually affected
Above €3m net the tax is universal — ITSGF levels the relief regions with everyone else. Below €3m everything turns on the region: zero in Madrid and Andalusia, regional IP scales elsewhere. A non-resident with Spanish property runs the obligación real math: a €700,000 allowance, the right to elect the "home" region's rules and — since late 2025 — the 60% cap.
FAQ
Is Madrid still the "no wealth tax" region?
Up to ~€3.7m net — yes. Above that a payment arises either way; Madrid has tuned its relief so the money stays with the region rather than the state.
Does a non-resident pay wealth tax on a Spanish apartment?
Only Spanish-situs assets count (obligación real), with a €700,000 allowance — tax appears only above that level of Spanish assets. The non-resident may also elect the rules of the region where most assets sit.
When is ITSGF filed?
Modelo 718, July 1–31 of the year following the tax year. For 2025, the updated form under Orden HAC/652/2026 applies.
Are IP and ITSGF both payable?
Both are assessed, but IP paid is credited against ITSGF — effectively the total equals the higher of the two, never both.
What does the 60% cap give non-residents?
Combined IRPF, IP and ITSGF cannot exceed 60% of the IRPF bases. After the Supreme Court rulings and TEAC 04119/2025, the cap applies to non-residents — material for owners of large Spanish real estate.