Non-resident property owners in Spain must pay Wealth Tax (Impuesto sobre el Patrimonio) if their net Spanish assets exceed €700,000. In October and November 2025, Spain’s Supreme Court issued landmark rulings extending the 60% tax shield to non-residents for the first time. In December 2025, the TEAC extended the same shield to the Solidarity Tax on Large Fortunes (ITSGF). These changes can dramatically reduce the bill for property owners with modest income but significant Spanish assets.
Regional Wealth Tax at a Glance (2026)
| Region | Regional Exemption | Effective Rate | Notes |
|---|---|---|---|
| Madrid | €700,000 | 0% (100% bonification) | Solidarity Tax still applies above €3M |
| Andalusia | €700,000 | 0% (100% bonification) | Solidarity Tax still applies above €3M |
| Galicia | €700,000 | 50% reduction | Partial bonification |
| La Rioja | €700,000 | 25% reduction | Partial bonification |
| Catalonia | €500,000 | 0.21%–2.75% | Lower exemption; full regional rates |
| Valencia | €1,000,000 (Ley 5/2025, from 1 June 2026) | 0.25%–3.12% | New higher exemption under Ley 5/2025 |
| Balearic Islands | €700,000 | 0.28%–3.45% | Full regional rates |
| Murcia | €700,000 | 0.24%–3.00% | Full regional rates |
| Asturias | €700,000 | 0.22%–3.00% | Full regional rates |
| Extremadura | €500,000 | 0.30%–3.75% | Highest regional rate in Spain |
| Aragon | €400,000 | State scale | Lower exemption; state scale applies |
| Navarra / Basque Country | €800,000 | Own foral scale | Separate foral system |
The Solidarity Tax on Large Fortunes (ITSGF)
In December 2025, the Central Economic-Administrative Court (TEAC) confirmed that the 60% income/wealth tax combined cap also applies to the Solidarity Tax on Large Fortunes (ITSGF) — meaning non-residents with assets above €3 million can cap their combined IRNR + Wealth Tax + ITSGF bill at 60% of their taxable income base. This extends the Supreme Court’s October/November 2025 ruling to the ITSGF as well.
| Net Spanish Assets | ITSGF Rate |
|---|---|
| €3,000,000 – €5,347,998 | 1.7% |
| €5,347,998 – €10,695,996 | 2.1% |
| Over €10,695,996 | 3.5% |
Filed using Form 718, with a deadline in July following the tax year. The ITSGF is complementary to regional Wealth Tax — any amount paid in regional Wealth Tax is credited against the ITSGF liability.
The 2025 Supreme Court Ruling — And Your Right to Retroactive Refunds
The Supreme Court rulings (STS 4849/2025, 29 October and STS 4846/2025, 3 November 2025) established that non-residents were unlawfully denied the 60% combined income/wealth tax cap. The ruling applies to EU and non-EU non-residents alike.
Key Consequences
- Non-residents can now apply the 60% combined limit using home-country income tax as reference.
- The maximum reduction is 80% of the Wealth Tax due (minimum 20% always payable).
- Non-residents can revisit previous tax assessments within the 4-year statute of limitations.
- The December 2025 TEAC decision extends this protection to the ITSGF as well.
Retroactive Refund Action
Non-residents who paid Wealth Tax without the 60% shield in tax years 2021–2024 may be entitled to file rectification claims (solicitudes de rectificación) with the AEAT to recover the overpaid amount. Lextax reviews prior filings and manages the refund claim process — contact us to assess your entitlement.
Who Must File — The Two Thresholds
| Trigger | Threshold | Action Required |
|---|---|---|
| Net asset value (assets minus mortgage and debts on Spanish property) | Exceeds €700,000 | File Form 714 and pay tax |
| Gross asset value (without deducting any debts) | Exceeds €2,000,000 | File Form 714 even if net value below €700,000 |
IMPORTANT: The €300,000 primary residence exemption does NOT apply to non-residents. Non-residents must include the full value of any Spanish property in their gross asset calculation.
Form 714 and Form 718: Deadlines 2026
| Form | Tax Year | Filing Window | Notes |
|---|---|---|---|
| Form 714 (Wealth Tax) | 2025 | 7 April – 30 June 2026 | Online only via AEAT |
| Form 718 (ITSGF) | 2025 | 1–31 July 2026 | 60% cap now applies per TEAC Dec 2025 |
Frequently Asked Questions
Do non-residents pay Wealth Tax in Spain on worldwide assets?
No. Non-residents are taxed only on assets located in Spain. Your overseas property, foreign bank accounts, and non-Spanish investments are completely excluded.
What is the Wealth Tax threshold in Spain for non-residents in 2026?
€700,000 in net Spanish assets. If gross Spanish assets exceed €2,000,000, you must file Form 714 regardless.
Valencia raised its Wealth Tax exemption in 2026 — is that true?
Yes. Ley 5/2025 raises the Valencian Wealth Tax exemption from €700,000 to €1,000,000, effective 1 June 2026.
Can I reclaim overpaid Wealth Tax?
Possibly. The 2025 Supreme Court ruling means non-residents denied the 60% cap in prior years (2021–2024) may claim refunds. Contact Lextax to assess your entitlement.
Does the 60% shield also apply to the Solidarity Tax (ITSGF)?
Yes — as of December 2025, the TEAC confirmed the 60% shield applies to the ITSGF as well as the standard Wealth Tax.
What is the deadline for Form 714 in 2026?
Form 714 for the 2025 tax year must be filed between 7 April and 30 June 2026, online only.
Let Lextax Handle Your Wealth Tax
Lextax manages Wealth Tax calculation, Form 714 and Form 718 filing, 60% shield analysis, retroactive refund claims, and ongoing compliance for non-resident property owners worldwide.
