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 a base above €3m — that is, net wealth from roughly €3.7m once the €700,000 allowance is applied (art. 3.Nueve and 3.Once):
| 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's general 100% IP bonificación (art. 20 of Decreto Legislativo 1/2010) does not apply while ITSGF is in force: from IP 2023 it was displaced by a "variable" one — the difference between the IP cuota íntegra and the ITSGF cuota íntegra (seventh transitional provision of the same text, inserted by Ley 12/2023, de 15 de diciembre). 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. Andalusia runs the same mechanics and the same threshold under the fifth transitional provision of Ley 5/2021: for 2023 an Andalusian could still elect the flat 100%, but that option was removed by the fifth final provision of Ley 7/2024, de 23 de diciembre, with effect from IP 2024.
| Region | IP relief | Net effect with ITSGF |
|---|---|---|
| Madrid | "variable" instead of 100% (DT 7ª, DLeg 1/2010) | zero up to ~€3.7m net; above — tax flows to the region via IP |
| Andalusia | "variable" instead of 100% (DT 5ª, Ley 5/2021), no option from IP 2024 | zero up to ~€3.7m net; above — tax flows to the region via IP |
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 ~€3.7m net the tax is universal — a €3m base after the €700,000 allowance — and ITSGF levels the relief regions with everyone else. Below that threshold 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.
Q/A
Is Madrid still the "no wealth tax" region?
Up to ~€3.7m of net wealth, yes. Above that a payment arises either way: Madrid's general 100% IP bonificación has been displaced since IP 2023 by a "variable" one that waives only the part ITSGF would not capture — so the money stays with the region through IP instead of going to the state through ITSGF. Andalusia runs the same mechanics, and the same ~€3.7m threshold, from IP 2024.
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, filed between 1 and 31 July of the year following the tax year; for 2025 the updated form under Orden HAC/652/2026 applies. ITSGF was introduced as a temporary measure by Ley 38/2022 and then extended indefinitely by RDL 8/2023 pending the reform of regional financing, so the July filing is now a standing obligation.
Are IP and ITSGF both payable?
Both are assessed, but IP paid is credited against ITSGF, so the total equals the higher of the two rather than the sum. That is the design: the state scale for IP runs 0.2–3.5%, ITSGF starts at €3m with rates of 1.7%, 2.1% and 3.5%, and the credit stops the two from stacking on the same wealth.
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.