Spanish Wealth Tax Calculator 2026 (Impuesto sobre el Patrimonio)

Spain's Impuesto sobre el Patrimonio (IP) is an annual tax on net wealth — the total value of your assets minus qualifying liabilities — assessed on 31 December each year. It is one of the few active wealth taxes in the European Union, and it applies to a wider group of people than many non-residents realise.

• Spanish tax residents are subject to IP on their worldwide net wealth — all assets held anywhere in the world are included, from Spanish properties and bank accounts to overseas investment portfolios, foreign companies, art collections, and pension funds where the capital is accessible
• Non-residents are subject to IP only on assets sited in Spain — primarily Spanish real estate, bank accounts in Spanish financial institutions, shares in Spanish companies, yachts registered or usually berthed in Spain, and other Spain-located assets
• Beckham Law (Impatriados) residents are treated as non-residents for IP purposes — so only their Spanish-sited assets are within the IP base, not their worldwide foreign wealth. This is a significant additional benefit of the Beckham Law regime for internationally mobile professionals with foreign investment portfolios

Filing and threshold

IP is reported annually on Modelo 714, filed between April and 30 June of the following year (for example, the 2025 IP return is filed in spring 2026). The national minimum personal exemption is €700,000 per person, meaning only net wealth above this amount is subject to IP. For Spanish residents, an additional €300,000 exemption applies to the main residence — meaning a couple who are both Spanish residents with a jointly owned main home worth up to €600,000 would owe no IP even before applying the personal exemptions.

The regional dimension

IP is a regional tax: autonomous communities can modify the rates, introduce additional exemptions, or apply a bonus that reduces or eliminates the regional IP charge. Historically, regions like Madrid and Andalucía applied a 100% bonus, meaning their residents paid no IP at all. However, Spain's central government responded to this competitive dynamic by introducing the Impuesto de Solidaridad de las Grandes Fortunas (IGF) in 2023 — a national wealth tax that cannot be neutralised by regional bonuses.

The Solidarity Wealth Tax (IGF) — a national floor

The Impuesto de Solidaridad de las Grandes Fortunas applies to net wealth above €3 million at national rates of 1.7% to 3.5%. It functions as a floor: IP paid on the same wealth is credited against the solidarity tax. For residents of zero-IP communities (Madrid, Andalucía), this means paying the solidarity tax in full, since no IP is available to offset. For residents of communities with active IP scales, the solidarity tax is largely offset by IP already paid — only if IP falls below the solidarity tax liability does a top-up become due. The result is that high-net-worth individuals in every region of Spain will pay at least the solidarity tax rates on wealth above €3 million. See our income–wealth joint-limit analysis to learn how the 60% shield can reduce this combined IP and solidarity-tax burden in Madrid, Catalonia, Valencia and Andalusia.

Spain's decentralised tax system means that where you reside determines your regional IP liability — sometimes dramatically so. The table below shows the regional IP regime and approximate IP liability at different wealth levels for major communities. Note that the national Solidarity Tax applies in addition across all communities for wealth above €3 million.

Choice of autonomous community

For individuals relocating to Spain, the choice of autonomous community of tax residence has a direct impact on regional IP liability. Establishing residency in Madrid or Andalucía eliminates the regional IP charge entirely — though the Solidarity Tax still applies to wealth above €3 million. For wealth between €700,000 and €3 million, moving from a full-scale community (Cataluña, Valencia) to Madrid could eliminate several thousand euros of annual IP. However, the choice of region should never be driven solely by tax: the individual's genuine connection, lifestyle preferences, and other practical factors all matter — and the Spanish tax authority scrutinises community changes by high-net-worth individuals for substance.

Family business exemption (empresa familiar, Art. 4.8 LIP)

Assets held through a qualifying family business — including operating companies, professional partnerships, and certain holding structures — can benefit from a full exemption from the IP base. The conditions are technical but often achievable with proper structuring:

• The entity must carry on an active business or professional activity (mere asset holding does not qualify)
• The taxpayer must own at least 5% of the entity directly (or 20% together with close family members)
• The taxpayer or a family member must perform management functions and receive a salary for those functions that represents more than 50% of the taxpayer's total net income from employment and business activities
• Assets within the entity must be used in the business — excess liquid assets, non-operational real estate, and passive investments held within the company do not qualify for the exemption

The empresa familiar exemption is one of the most powerful tools available to entrepreneurial clients. When properly structured, it can exclude the majority of a high-net-worth individual's assets from the IP base — including their ownership stake in their operating business.

Pension funds and retirement structures

Spanish pension fund rights (derechos consolidados — entitlements that cannot yet be received) are excluded from the IP base. This makes pension savings particularly efficient from an IP perspective. However, the position is more complex for foreign pensions: UK SIPPs, US 401(k)s, US IRAs, and other overseas pension wrappers are generally included in the worldwide IP base for Spanish residents if the taxpayer can access or assign the capital value — the analysis depends on the specific rules of each pension scheme and Spain's classification of foreign pension vehicles.

Debt deductibility

Liabilities directly linked to the acquisition of taxable assets are deductible from the IP base. This includes mortgages secured on Spanish properties, investment loans used to purchase portfolio assets, and other structured borrowings where the proceeds were used to acquire assets included in the IP base. Efficient liability management — including ensuring that debt is properly documented and linked to taxable assets — can reduce the IP base meaningfully.

The IP cap rule (regla de limitación)

For Spanish residents who are also subject to IRPF, a cap rule limits the combined IRPF + IP liability to 60% of the taxpayer's general and savings income tax base. Where the combined charge exceeds this cap, IP is reduced — though the reduction cannot exceed 80% of the IP liability. The cap is particularly relevant for individuals with large asset bases relative to their income — for example, retired individuals living off capital, or property owners whose wealth is largely in real estate generating modest rental yields. Careful modelling of the cap across different income-generating strategies can reduce the effective IP burden.

Life insurance and investment products

The surrender value of life insurance policies (seguros de vida) and investment-linked insurance products is included in the IP base. This is often overlooked by individuals relocating to Spain who hold Spanish or Luxembourg life insurance wrappers. By contrast, term insurance policies with no surrender value are not subject to IP. The structure of investment vehicles — whether held directly, through an insurance wrapper, through a pension, or through a company — has a direct bearing on IP exposure and should be reviewed before establishing Spanish tax residency.