Spanish wealth tax for non-residents: what has changed

Spain is one of the few European countries that still taxes wealth, and non-residents who own Spanish property are within its reach. Most owners of a single holiday home will never pay it, thanks to a €700,000 allowance. For those who do, two things have changed that most guides have not caught up with: the regional tax holidays in Madrid and Andalucía no longer work the way they used to, and since late 2025 non-residents can use the same cap on their total tax bill as residents.

What non-residents are taxed on

A non-resident pays Spanish wealth tax only on assets located in Spain: property, Spanish bank accounts, shares in Spanish companies. Since 29 December 2022, that also includes shares in unlisted companies, Spanish or foreign, whose assets consist at least 50% of Spanish real estate. Holding a villa through a UK company no longer takes it out of scope.

The €700,000 allowance

The state allowance for non-residents is €700,000 of net Spanish assets. The €300,000 exemption for a main home is for residents only, because it follows the income tax definition of a habitual residence. A holiday home is taxed in full.

Debts can be deducted when they relate to the Spanish assets: charges on those assets, and debts taken on to acquire them. That is broader than just a Spanish mortgage, but it has to be traceable to the asset.

How the property is valued

Not at its cadastral value alone. The law takes the highest of three figures: the cadastral value, the value set or checked by the administration, and the purchase price. For most properties bought in the last decade the purchase price is the highest. For purchases from 2022, the tax authority's reference value counts where it was used for the purchase tax.

Which region's rules apply

By default a non-resident pays under the state rules. Since July 2021, every non-resident, whether in the EU or not, can instead choose the rules of the region where the greatest value of their Spanish assets is located. That choice matters because regions set their own rates and reliefs.

Madrid and Andalucía: the 100% relief is suspended

Madrid and Andalucía were famous for a 100% relief on wealth tax. Both have suspended it for as long as the state's solidarity tax on large fortunes exists. It has been replaced by a relief equal to the wealth tax minus the solidarity tax. Below the solidarity tax threshold the result is still zero. Above it, the tax goes to the region instead of the state, but it is paid. Murcia has used the same mechanism since July 2025.

The solidarity tax on large fortunes

The state's solidarity tax applies to net wealth above €3,000,000, with the same €700,000 allowance, at rates of 1.7%, 2.1% and 3.5%. Wealth tax actually paid is deducted from it. It was introduced as temporary and has been extended until the reform of regional financing. The return is filed from 1 to 31 July, and residents of the UK, which is outside the EU and EEA, must appoint a representative in Spain.

The 60% cap now applies to non-residents

Spanish law caps income tax plus wealth tax at 60% of the taxable income base, and for years the tax agency applied that cap to residents only. In October and November 2025 the Supreme Court held that residence does not justify the different treatment. The 2025 wealth tax form was adapted, and the tax tribunal extended the same reasoning to the solidarity tax. How the cap is calculated for a non-resident is not yet settled in detail, and whether earlier years can be reclaimed needs a case-by-case check.

Filing

A non-resident must file a wealth tax return if tax is payable, or if the gross value of their Spanish assets exceeds €2,000,000, even if nothing is due. The 2025 return was filed electronically between 8 April and 30 June 2026.

Double taxation

Under the tax treaty between the UK and Spain, Spain may tax the property. The UK has no wealth tax, so there is nothing to credit there. Ireland has no wealth tax either.

Questions we get

I own one apartment worth €400,000. Do I need to do anything?
No wealth tax is due and, below €2,000,000 gross, no return is needed. Your annual non-resident income tax on the property still applies: see non-resident property tax in Spain.

Does a couple get €700,000 each?
Yes, each owner is a separate taxpayer for their share.

Does the NIE matter?
Each taxpayer files with their own NIE. See what is a NIE number.

Why Buenaley?

Buenaley is a Spanish law firm working with international property owners. For owners with significant Spanish property there are two things we take off your hands, in this order.

The first is the NIE, for every owner and co-owner. We arrange it through our NIE service.

The second is the property: how you hold it, how it is valued and what it costs you each year.

• NIE for each owner, from abroad
• Check of whether wealth tax or a return applies
• Choice of regional rules where it pays off
• Review of the 60% cap in your case
• Structure checked before you buy

Own property in Spain worth more than €700,000 per person? Send an overview, and you will hear whether wealth tax applies. Or start with the NIE application.