Wealth tax spain non residents und Spain wealth tax: Wealth tax in Spain for non-residents – which allowances and rates apply?

Wealth tax on Spanish property assets

Non-residents pay Spanish wealth tax on the net wealth located in Spain, that is the property value less any mortgage. The national allowance is €700,000 per person.

• Foreigners pay too — national allowance €700,000 per person: Foreigners are subject to it as well. The national allowance is €700,000 per person; in the Balearics €3m (€6m for a couple), in Andalusia effectively 0.
• Spanish wealth tax: the mortgage is deducted from net wealth: It is calculated on net wealth (property minus mortgage). Important, per the Tribunal Supremo (167/2023): the mortgage must have been taken out for the purchase or for renovation. Run the numbers.
• What is the solidarity tax? The Impuesto de Solidaridad (since 2023) applies from €3m of net wealth; in regions without a rebate it does not apply. The regions.
• Do non-residents with a property pay wealth tax in Spain? Yes — as a non-resident you pay wealth tax in Spain (Impuesto sobre el Patrimonio) on your net assets there, 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 — the Balearics, for instance, an allowance of €3m per person, Andalusia a 100 % rebate. 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, the Spanish wealth tax. 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.

Wealth tax vs. Modelo 720

The wealth tax (Impuesto sobre el Patrimonio) is often confused with Modelo 720 — but that is a different obligation.

Modelo 720 is a pure reporting duty for assets held abroad (accounts, property, securities) above certain thresholds, not a tax of its own. It concerns people tax-resident in Spain with assets outside Spain — not non-residents with a property in Spain, for whom the wealth tax above applies. Details on Modelo 720.

The wealth tax is not the only recurring obligation

It stands alongside several other items that concern owners without Spanish residence every year. Know only one of them, and you plan the holding costs too low:

Modelo 210 — the non-resident tax. It is due even if the property is used exclusively by you and never let. IBI — the municipal property tax, regardless of use and residence.

Plusvalía — on a sale, on the increase in land value, levied by the municipality. Capital Gains Tax in Spain — the state tax on the gain when you sell, withheld at a flat rate from every non-resident seller.

Modelo 720 — a pure reporting duty, and in the other direction: it concerns Spanish residents with assets abroad, not non-residents with a Spanish property.

Inheritance and gift tax — regulated very differently by region and, when planning the handover, often the bigger item than the wealth tax itself.

Because all of these diverge regionally, the choice of region is no side issue for buyers with room to choose. What separates the individual regions is under regions and financing; the costs of the purchase itself are worked out by the purchase costs calculator for each autonomous community.

Wealth tax in Andalucia: effectively zero for non-residents: In Andalusia the wealth tax formally exists, but a 100 % rebate at regional level reduces it to zero. For Marbella buyers this is one of the most important advantages over Mallorca. Whether it applies to you depends on your tax status, which is a question for a tax adviser.

Spanish tax for foreigners in Mallorca: what owners pay besides wealth tax: Besides wealth tax, owners without Spanish residence face several recurring items. The Modelo 210 non-resident tax is due even if you only use the property yourself.

IBI, the municipal property tax, applies regardless of use and residence. On a sale come plusvalía, levied by the municipality, and capital gains tax, withheld at a flat rate from every non-resident seller. Inheritance and gift tax also belong on the list.

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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