Spanish Wealth Tax for Non-Residents: What You Need to Know in 2025

If you’re a non-resident property owner in Spain, it’s essential to understand the Spanish Wealth Tax (“Impuesto sobre el Patrimonio”). Although many countries in Europe have abolished wealth taxes, Spain continues to enforce it—even on non-residents with assets in Spanish territory.

This 2025 guide will walk you through what the wealth tax is, when and where it applies, what assets are affected, how to calculate it, and how non-residents—particularly those from the UK, Netherlands, Sweden, France, and Germany—can stay compliant. We’ll also discuss changes since 2023, the impact of temporary solidarity taxes, and how to reduce or avoid overpayment with the right advice.

📌 What Is the Spanish Wealth Tax?

The Wealth Tax (Impuesto sobre el Patrimonio) is an annual tax on the net value of your assets located in Spain. Non-residents are only taxed on their Spanish-based assets, unlike residents who must declare worldwide assets.

Wealth tax is managed regionally, which means autonomous communities like Andalusia, Catalonia, and the Balearic Islands may apply their own rules, allowances, and rates.

🌍 Who Needs to Pay Spanish Wealth Tax?

You must file and pay wealth tax in Spain if you meet all of the following conditions:

• You are a non-resident (live outside Spain for more than 183 days/year)
• You own property or assets in Spain
• The net value of those assets exceeds €700,000 (standard national exemption)

⚠️ In some regions, the exemption is lower (just € 500 000) or removed entirely, and some regions apply 0% tax.

🧮 How Wealth Tax Is Calculated for Non-Residents

Step 1: Identify Taxable Assets

Non-residents are only taxed on assets located in Spain. These typically include:

• Real estate (e.g. holiday homes)
• Spanish bank accounts
• Spanish company shares
• Spanish investment funds

Step 2: Deduct Debts and Mortgages

Debts secured against your Spanish assets can be deducted proportionally from your wealth base. Only Spanish-sourced debts are considered.

Step 3: Apply Exemptions

• €700,000 exemption per individual (unless region overrides it)
• No exemption for company-owned properties (if you own via a company)

Step 4: Apply Regional or National Tax Rates

Spain’s national scale is:

Regional scales may differ. For example:

• Madrid applies a 100% exemption → no wealth tax payable
• Catalonia and Balearic Islands apply higher rates

📅 When to File Wealth Tax as a Non-Resident

The wealth tax filing deadline in Spain is usually between April and June, together with income tax season.

• Use Modelo 714 to declare wealth tax
• Declaration is individual, even for jointly owned assets
• Online filing is mandatory for non-residents

If your assets exceed the threshold but you owe €0 tax (e.g., due to regional exemptions), you may still need to file a return.

📈 Impact of the Solidarity Wealth Tax (ISGF)

In 2023, Spain introduced a temporary Solidarity Wealth Tax (ISGF) for high-net-worth individuals. It targets:

• Net assets over €3 million
• Applies nationwide and overrides regional exemptions if applicable

As of 2025:

• Still in force, though under political review
• Non-residents with Spanish wealth over €3M may be affected
• Filing is separate from Modelo 714

Netherlands, Sweden, France, Germany: Country-Specific Concerns

1. UK Residents Post-Brexit

• UK is no longer in the EU, but still subject to same tax treatment as before
• May be excluded from some benefits available to EU residents (e.g., tax credit offsets)

2. Dutch and French Residents

• France and Netherlands have treaties with Spain to avoid double taxation of wealth
• You may get tax credits back home depending on the treaty article

3. Swedish and German Citizens

• Wealth tax abolished in Sweden and Germany, but Spain’s tax still applies on assets located in Spain

📁 Documents Needed to File Wealth Tax

To prepare your Modelo 714 as a non-resident, you’ll need:

• NIE number
• Deeds and cadastral value of real estate
• Bank and brokerage statements (Spanish accounts)
• Appraisals of valuables (art, jewelry, vehicles)
• Mortgage/debt documentation
• Valuations of business holdings or Spanish shares

🚫 Common Mistakes to Avoid

• Assuming wealth tax doesn’t apply to non-residents
• Not knowing that tax varies by region (e.g. 0% in Madrid, higher in Balearic Islands)
• Forgetting to include jointly owned assets
• Not declaring non-rented properties
• Missing the Modelo 714 deadline
• Ignoring the ISGF solidarity tax if wealth > €3M

✅ Taxadora Helps You Stay Compliant

Taxadora offers expert services for non-residents who need help with:

• Preparing and filing Modelo 714 (wealth tax)
• Navigating regional exemptions and tax rates
• Calculating deductible expenses or mortgage reductions
• Coordinating with international advisors for tax credits
• Checking for overlapping wealth declarations under ISGF

👉 Get help with Spanish Wealth Tax

🙋 Frequently Asked Questions (FAQ)

Q: I only own one property worth €400,000. Do I need to file?
No — you’re below the national €700,000 threshold. But check your region (e.g., Catalonia may apply a lower threshold).

Q: I have €2M in Spanish property. How much tax do I owe?
That depends on the region. For example:

• Madrid: likely €0 tax due to 100% exemption
• Balearic Islands: you may owe €20,000+ depending on rates

Q: Is the €700,000 exemption per person?
Yes. If two spouses each own 50% of a €1.4M property, they may each claim €700,000.

Q: Can I avoid wealth tax by owning through a company?
Not necessarily. Spanish authorities often look through company ownership to assess underlying assets.

Q: Can I deduct a mortgage on the property?
Yes — but only if it’s directly linked to the Spanish property and properly documented.

📝 Final Thoughts

Wealth tax in Spain remains a key consideration for non-residents with property or high-value assets. It’s region-specific, often misunderstood, and carries serious penalties if ignored.

Whether you’re a UK citizen with a villa in Alicante, a Dutch retiree with an apartment in Barcelona, or a German family with a holiday home in Mallorca — Modelo 714 filing might be required.

At Taxadora, we simplify the process, ensure you’re compliant, and help you reduce overpayment where legal.

👉 Let Taxadora help with Modelo 714