# Spanish Wealth Tax: IP and the Solidarity Tax ITSGF > Spain's wealth tax (IP) and solidarity tax ITSGF: rates up to 3.5%, €700,000 allowance, Madrid and Andalusia relief, Modelo 718, 60% cap for non-residents. Author: Мария Плотникова — юрист, Family Office (https://wiki.private.law/authors/plotnikova) Last modified: 2026-07-16T09:49:00.000Z Canonical: https://wiki.private.law/en/spain-wealth-tax Topics: investments Jurisdictions: spain Semantic tags: tax-regime, wealth-planning --- 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](https://www.boe.es/buscar/act.php?id=BOE-A-1991-14392). 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](https://www.afianza.es/blog/impuesto-solidaridad-grandes-fortunas/) 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](https://www.eleconomista.es/legal/noticias/12602463/12/23/el-ejecutivo-extiende-el-minimo-exento-de-700000-euros-en-grandes-fortunas-a-los-no-residentes.html) 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](https://sede.agenciatributaria.gob.es/Sede/todas-noticias/2026/junio/29/modificacion-impuesto-temporal-solidaridad-grandes-fortunas.html)). > 🍓 ITSGF neutralised regional relief: Madrid and Andalusia stay at zero only up to ~€3.7m and €3m net respectively. Above that, tax is due either way — the only question is who collects: the region via IP or the state via ITSGF. ## 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](https://www.cuatrecasas.com/es/spain/fiscalidad/art/itsgf-medidas-adoptadas-ccaa)). Andalusia runs the same mechanics ([Guía Fiscal](https://guiafiscal.es/patrimonio/ip/andalucia/)). | 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](https://www.cuatrecasas.com/es/spain/fiscalidad/art/resoluciones-teac-limite-conjunto-no-residentes). For a non-resident holding substantial Spanish real estate with modest Spanish income, this cuts the bill dramatically. [Beckham regime](https://wiki.private.law/en/beckham-law) 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](https://wiki.private.law/en/beckham-law-exit), together with [Modelo 720](https://wiki.private.law/en/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. --- ## 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. --- ## Factual claims - The base law is Ley 19/1991. - Ley 38/2022 taxes net wealth above €3m: - 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 keeps its 100% IP bonificación, but since 2023 it is "variable" while ITSGF exists: the region waives only the part ITSGF would not capture. - Spanish law caps combined IRPF + IP + ITSGF at 60% of the IRPF bases. - Above €3m net the tax is universal — ITSGF levels the relief regions with everyone else.