Blog chevron_right Spain wealth tax
TaxSpain's wealth tax in 2026: the rules for foreign property owners
Published 20 October 2026·7 min read·By The Alveo team
Your property in Spain counts towards the Impuesto sobre el Patrimonio, Spain's wealth tax. As a non-resident, you pay it on your Spanish assets only, after a €700,000 allowance. Above that, the region where the property sits and the mortgage that financed it change the calculation.
Who pays wealth tax in Spain
Spain charges the Impuesto sobre el Patrimonio on the assets you hold on 31 December. Tax residents of Spain pay it on everything they own, wherever it is. If you live abroad, only your Spanish assets count: your property, your Spanish bank accounts and shares in any unlisted company whose assets are at least half Spanish real estate.
People who move to Spain under the inbound workers' regime, known as the Beckham law, are taxed as non-residents here too, on their Spanish assets alone.
You file online on form 714 in the spring of the following year. For assets held on 31 December 2025, the filing window ran from 8 April to 30 June 2026.
The €700,000 allowance and how your property is valued
Non-residents receive a €700,000 allowance on their net Spanish assets. Above it, the state scale runs from 0.2% to 3.5%. If your Spanish assets, minus the mortgage, stay under the allowance, you owe nothing.
You still file a return when the gross value of your assets in Spain exceeds €2,000,000, before any debt is deducted.
For a property, the tax office uses the highest of three figures: the cadastral value, a value set by the administration for another tax (including the Catastro reference value for homes bought since 2022 where it served as the basis for purchase tax), and the purchase price plus notary fees, registry fees and the tax paid on purchase.
The mortgage that financed your property is deductible
The capital outstanding on 31 December reduces your taxable assets. For a non-resident, only debts used to buy or invest in the Spanish property count. A personal loan qualifies if it paid for the purchase and you can prove it.
A mortgage secured on the home to fund something else stays out of the calculation, as the Tribunal Supremo ruled on 13 February 2023.
Example: a flat bought for €1,100,000 including costs, with €450,000 still owed on the mortgage, leaves net assets of €650,000, below the €700,000 allowance.
Alveo Finance advisers guide you through arranging that mortgage and working with partner banks, whether you live in Spain or abroad.
Using the rules of your property's region
Since 11 July 2021, every non-resident, from any country, may apply the rules of the autonomous community where the largest share of their Spanish assets sits, in place of the state rules. You make the choice on the return, and the region's rules then apply in full.
The solidarity tax on large fortunes
Introduced at the end of 2022, this state tax applies to net taxable assets above €3,000,000, after the same €700,000 allowance. Rates run from 1.7% to 3.5%, and any regional wealth tax you paid is deducted from it.
Non-residents pay it on their Spanish assets. If you live outside the European Union, in the UK or the US for instance, you appoint a tax representative in Spain. The return, form 718, is filed in July.
The government extended it until the reform of regional financing, which had not passed by 20 October 2026, so it still applies for 2026.
Following two Tribunal Supremo rulings in October and November 2025, non-residents also benefit from the cap that limits income tax and wealth tax together to 60% of income, previously reserved for residents. The tax office has applied it since the 2025 returns.
What your home country does
The United Kingdom and the United States have no annual wealth tax, so the Spanish tax is the only one that applies to your property.
French residents declare their Spanish property for France's real estate wealth tax (IFI) above €1,300,000 of net real estate, with a credit for the tax paid in Spain. For other countries, the tax treaty signed with Spain sets the rule.
Legal references
A property project in Spain?
Talk to an Alveo adviser: reply within two business hours, in your language.
One team for your whole project
- checkSearch & purchase
- checkFinancing
- checkSelling
- checkRental management
- checkInsurance
Let’s talk about your project
Leave us your details and an adviser from your area will call you back.
Reply within 2 working hours · Monday to Friday, 9am-7pm