What do foreigners with a property in Spain or the Balearic Islands pay? Allowances, rates, the Mallorca special rule — and why a mortgage can substantially lower the tax burden.
Yes — as a non-resident you pay Spanish wealth tax (Impuesto sobre el Patrimonio) on your net assets in Spain, essentially the property value less debts. A general allowance of €700,000 per person applies; a couple each holding half in the land register effectively doubles it. Only above that does a progressive rate begin. Crucial and often overlooked: a mortgage reduces the taxable net wealth, because the loan is deducted from the property value — financing instead of paying cash lowers the tax base. Rates and allowances vary by region; some autonomous regions grant relief, others (such as the Balearics) levy it in full. Your exact liability depends on your tax status — that is tax advice, not a blanket statement. The financing point, though, is clear: borrowed capital works twice, as a liquidity lever and as a reduction of the wealth-tax base.
Anyone who owns a property in Spain as a non-resident is subject to the Spanish Impuesto sobre el Patrimonio — this is what people mean when they search Spain wealth tax or wealth tax Spain non residents. What is taxed is the net wealth located in Spain — that is, the property value less any mortgage. This is the most important reason why mortgages can be strategically attractive even when you have capital available.
€3m per person. For married couples €6m. Wealth tax applies only above that. In force since 2023.
100% rebate — the tax formally exists but is reduced to zero at the regional level. For Marbella buyers, one of the most important advantages over Mallorca.
National allowance €700,000 per person. Above that, graduated from 0.28% to 3.45%.
Simplified calculation. Actual tax rates and the calculation are graduated. Consulting a Spanish tax adviser is recommended.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
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