The Spanish Wealth Tax Yearly Return

Wealth tax is charged on net assets at 31 December each year. Residents are taxed on assets worldwide. Non-residents are taxed on assets located in Spain, which in practice means property and, sometimes, shares in companies whose value is mainly Spanish real estate.

The general exempt amount is €700,000 per person, and residents also have up to €300,000 for their main home. A return is compulsory when tax is payable, and also when gross assets exceed €2,000,000 even if nothing is payable.

The regions set their own scales and reliefs, and they differ sharply: some have reduced the tax to nothing in recent years. Because of that, a national solidarity tax on large fortunes applies to net wealth above €3,000,000, crediting whatever regional wealth tax was paid. Non-residents may choose the rules of the region where most of their Spanish assets are.

The planning questions, including family business relief and the cap that links wealth tax to income, are covered under wealth tax in Spain. This page is about the yearly return.

Foreign-currency assets are converted at the official rate on 31 December. For new residents the first inventory is the laborious one. After that, each year is an update.

• Build or update the inventory at 31 December, asset by asset.
• Apply the exempt amount, the main-home relief and the rules of your region.
• Check the duty to file above €2,000,000 of gross assets.
• Calculate the solidarity tax where the region's own tax is reduced, and file its return.
• File form 714 between April and June, alongside the income tax return.

The fee is €210 a year, taxes included. Net wealth above five million euros is quoted. Analysis of family business relief is separate work, from €520.

Because the same statements serve both, we prepare it together with form 720 when both apply.

• Assuming that a region with a full rebate means nothing has to be filed.
• Valuing property at cadastral value when the purchase price was higher.
• Using year-end share prices instead of the last-quarter average.
• Deducting the whole mortgage on a main home that is largely exempt.
• Non-residents applying the state rules without checking whether the regional ones are better.
• Forgetting assets held through a foreign company or a trust.