Wealth Tax Spain: Table with Tax Rates and Allowances

Anyone who owns a property in Mallorca or moves the centre of their life to Spain will sooner or later come across the Impuesto sobre el Patrimonio – the Spanish wealth tax. This wealth tax Spain table summarises what you really need to know: which allowances apply, how the tax rates are staggered, where the Balearics differ from Madrid, and from what point the solidarity tax for large fortunes additionally applies. You'll also learn how residents and non-residents are treated differently, how the Modelo 714 form works, and which deadlines apply in 2026. The wealth tax is a regionally regulated but nationally anchored tax – which is why it's worth taking a structured look at the figures before you buy a property or relocate your residence.

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What is the wealth tax in Spain?

The Impuesto sobre el Patrimonio (IP) is an annual, direct tax on the net worth of a natural person as at 31 December. It goes back to the law Ley 50/1977, which explicitly introduced it as an "extraordinary and temporary" measure – a character that, over the tax's more than 45-year history, has repeatedly proven to be an illusion. With Ley 19/1991 it was permanently anchored in the Spanish tax system, and it remains in this basic structure to this day.

Between 2008 and 2011 the tax was effectively suspended because the legislator granted a 100 percent tax credit without formally abolishing the tax. This door was reopened in 2011.

Note: Wealth tax is an impuesto cedido – a tax ceded to the Autonomous Communities. The State sets the framework, while the regions (such as the Balearics) can set their own allowances, rates and reductions within certain limits.

Who pays: Residents vs. Non-Residents

For wealth tax, there are essentially two groups of people with different scopes of taxation.

For non-residents, the state regulations generally apply, provided that a double taxation agreement does not restrict Spain's right of taxation. At the same time, the location of the assets – such as the specific municipality on Mallorca – is an important factor, since regional regulations may be linked to the place where the assets are located.

Attention: Persons with unlimited tax liability who have a permanent establishment in Spain, as well as individuals with substantial assets, must, under certain conditions, appoint a tax representative in Spain.

Allowances 2026 at a glance

The personal allowance is the starting point for every calculation. Only the assets exceeding this amount are actually taxed.

Since the personal tax-free allowance applies per person, married couples with separate assets or half-shared ownership of a property can effectively double this amount. Regional communities can also adjust the allowance further – which is why the location of your assets is relevant not only for the tax rates, but also for the allowances.

Tax rates: national scale and regional scope

Wealth tax is progressively tiered: the higher the assets above the allowance, the higher the marginal tax rate.

Note: Each Autonomous Community determines the exact number and width of the tax brackets independently. This means the same net asset value can be taxed differently depending on the region – so you should always have the specific tax burden calculated individually with a local tax advisor.

Balearic Islands, Catalonia and Madrid compared

Because wealth tax is regionally regulated, the actual burden varies considerably depending on where the assets are located.

Attention, this is where the most common mistake occurs:According to the regulation of the Comunidad Autónoma, the high Balearic tax-free allowance applies to taxpayers with obligación personal, who have their habitual residence in the Balearic Islands. Anyone who, as a non-resident, only owns a holiday property in Mallorca is subject to the obligación real and thus to the state regime — there, the tax-free allowance is 700,000 euros. The ATIB explicitly clarifies the division of competence as follows: the Comunidad Autónoma is responsible for persons resident in the Balearic Islands with obligación personal, while the state tax administration is responsible for non-residents and for obligación real. Whether and under what conditions a non-resident can nevertheless apply the regional regulation is a matter for individual assessment and belongs in tax advice — not in a rule of thumb.

The Balearic rate in detail

For taxpayers to whom the Balearic regulation applies, the following rate on the base liquidable:

Regardless of any tax liability, there is an obligation to file a return as soon as the value of the assets and rights exceeds 2,000,000 euros.

Solidarity tax and the IRPF-IP maximum amount

Since 2022, there is additionally the Impuesto de Solidaridad de las Grandes Fortunas (IGF, solidarity tax for large fortunes). It was introduced to prevent regions with a complete exemption – such as Madrid – from effectively undermining the wealth tax.

There is also the so-called cap rule under Art. 31.1 LIP: the sum of income tax (IRPF) and wealth tax (IP) may not exceed 60% of the tax base, whereby the wealth tax can be reduced by up to 80%.

The ruling is particularly relevant for German owners with property in Spain, as it eliminates a previously existing unequal treatment between residents and non-residents and can, in individual cases, lead to substantial tax savings.

Determining assets: property valuation and deduction of debts

For the calculation of the tax base, all relevant assets are initially taken into account – for non-residents, this is limited to assets located in Spain, such as property, bank accounts, holdings in Spanish companies and Spanish investment funds. How exactly a property is valued depends on the tax reference values – you can find more on this in our guides on Valor Catastral and Valor de Referencia.

Debts are then deducted from this gross wealth, such as mortgages and loans relating to the Spanish assets in question. Only after that is the personal allowance applied and the tax calculated on the remaining amount.

1. Add up all relevant assets (residents: worldwide, non-residents: Spain only).
2. Deduct deductible debts (e.g. mortgages).
3. Apply the personal allowance of €700,000.
4. For residents, an additional allowance of €300,000 for the main residence should be taken into account.
5. Apply the progressive tax rate (national or regional) to the remaining tax base.
6. Check the maximum amount rule and, where applicable, the solidarity tax.

Modelo 714: declaration, deadlines, process

Wealth tax is declared using the form Modelo 714 with the Agencia Tributaria (AEAT).

Note: If, based on ruling 1402/2025, you could benefit as a non-resident from the maximum amount rule, it's worth having an individual calculation carried out by a tax advisor during the 2026 declaration phase, so as not to miss out on possible savings.

If you are simultaneously moving your tax residence from Germany to Spain (or vice versa), you should also check the interactions with the exit tax and the AWV reporting obligation.

Most common mistakes with wealth tax

• Confusing the allowance with tax exemption: Even below the allowance, a filing obligation may exist in some regions, even if no tax is due.
• Ignoring regional differences: Anyone who equates a property in Mallorca with one in Madrid significantly underestimates the tax burden.
• Not documenting debts: Only debts that are verifiable and attributable to Spanish assets are deductible.
• Overlooking the maximum-amount rule as a non-resident: Since the ruling 1402/2025, it's worth checking whether the combination of IRPF and IP exceeds the 60-percent limit.
• Underestimating the solidarity tax: From 3 million € in net worth, this can also apply, even if a regional exemption exists.

What happens next?

After submitting the Modelo 714, the Agencia Tributaria reviews the details and may request clarifications or a correction in case of discrepancies. For larger estates, forward-looking planning is advisable – for example, in connection with questions of inheritance and gift tax in the Balearics, since wealth tax and inheritance tax have different assessment bases and allowances, but can influence one another.

Checklist: Wealth tax in Spain

• Clarify tax status: resident (worldwide assets) or non-resident (only Spanish assets)?
• Compile all relevant assets (properties, accounts, shareholdings, funds)
• Document deductible debts with supporting evidence
• Apply the personal allowance (€700,000) and, if applicable, the main residence allowance (€300,000)
• Check the regional regulation at the location where the assets are situated (e.g. the Balearics)
• Keep the solidarity tax threshold of 3 million € in mind
• Check the IRPF-IP maximum-amount rule under Art. 31.1 LIP (since 2025 also applicable to non-residents)
• Submit the Modelo 714 on time (check the AEAT's campaign period for the respective year)
• Appoint a tax representative if legally required

Conclusion

Wealth tax in Spain follows a clear basic logic – allowance, progressive rate, regional adjustment – but is full of regional nuances in practical application. Anyone who owns a property in Mallorca or is planning to move there should find out early which allowance applies, how the Balearics compare to Madrid or Catalonia, and whether the solidarity tax or the new maximum-amount rule becomes relevant. An individual calculation by an experienced tax advisor cannot replace this overview, but it will help you make informed decisions – in good time before the next filing period.

Official sources

• Ley 19/1991 (Impuesto sobre el Patrimonio) – Boletín Oficial del Estado: https://www.boe.es
• Agencia Tributaria (AEAT) – Modelo 714 and deadlines: https://sede.agenciatributaria.gob.es
• Tribunal Supremo – Ruling No. 1402/2025 on the maximum-amount rule: https://www.poderjudicial.es