Spain wealth tax for US expats: Rates, thresholds, and 2026 rules explained

For tax year 2025, Spain’s national wealth tax rates run from 0.2% to 3.5%. Spanish tax residents can face tax on worldwide net wealth, while nonresidents are generally taxed only on qualifying Spanish assets. Regional rules can materially change the result.

Spain is one of the few developed countries that still levies a recurring wealth tax on both residents and nonresidents holding assets within its taxing scope.

For US expats, the Spanish wealth tax does not replace US filing. US citizens abroad generally remain subject to US worldwide-income rules even when they become Spanish tax residents.

Our guide to US citizens, tax residency, and worldwide taxation explains why living abroad does not, by itself, end US federal filing obligations.

Spain assesses the tax based on assets and qualifying liabilities held on December 31. The state scale reaches 3.5%, although autonomous communities can change exemptions, rates, deductions, and bonuses.

 

What is the wealth tax in Spain?

Spain’s Impuesto sobre el Patrimonio is an annual tax on an individual’s net wealth as of December 31. For 2025, taxable wealth starts with assets and economic rights, then subtracts qualifying debts, exemptions, and the applicable minimum allowance.

Spain’s wealth tax applies to worldwide net wealth for taxpayers subject to personal obligation, while taxpayers subject to real obligation are taxed only on assets and rights connected with Spain.

The tax was effectively switched off for 2008, 2009, and 2010. Royal Decree-Law 13/2011 restored the levy beginning with the 2011 tax year.

That distinction corrects a common shorthand that describes the suspension as lasting “through 2011.” The wealth tax was already back for the December 31, 2011 assessment.

US owners of Spanish property should also separate wealth tax from other property-related charges. TFX’s guide to property taxes for nonresidents in Spain covers taxes such as IBI and Modelo 210.

It is a tax on net assets rather than annual income. Your result depends on residence status, ownership, exemptions, debts, and the autonomous community whose rules apply.

Did Spain repeal the wealth tax? Current status for 2025

No. Spain did not repeal its national wealth tax for tax year 2025. Law 38/2022 also created the Solidarity Tax on Large Fortunes, and that complementary tax remained in force after its original temporary period was extended.

Despite reports of abolition, Spain’s wealth tax remains legally in effect for the 2025 tax year filed in 2026.

The following 3 points describe the current position:

• The wealth tax remains in force for 2025. The national scale still exists, although autonomous-community rules can alter the calculation.
• The Solidarity Tax remains relevant for larger fortunes. Its scale starts with a 0% band up to €3 million of taxable base before positive rates apply.
• Regional bonuses no longer tell the whole story. Madrid and Andalucía have transitional rules while the Solidarity Tax remains in force.

Spain’s wealth tax was not abolished simply because an autonomous community historically offered a 100% bonus.

The two Spain wealth taxes must now be reviewed together for higher-net-worth taxpayers: the traditional wealth tax and the complementary Solidarity Tax.

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Spain wealth tax rates and brackets for tax year 2025

For tax year 2025, the national Spain wealth tax rates range from 0.2% to 3.5%. The tax is progressive, so each percentage applies only to the portion of taxable wealth falling within that band.

Autonomous-community scales can replace the state scale.

Under the 2025 national scale, taxable wealth above €10,695,996.06 reaches the 3.5% top marginal rate.

 

How much is wealth tax in Spain? There is no single percentage. The taxable base moves through progressive bands, and regional rules can produce a different bill from the national table.

The Solidarity Tax uses a different scale. The first €3 million of taxable base carries a 0% rate, followed by 1.7%, 2.1%, and 3.5% bands.

 

Wealth tax thresholds and exemptions in Spain

Under the national rules for 2025, the general minimum exemption is €700,000 per taxpayer. A qualifying Spanish resident can also exclude up to €300,000 of a principal residence.

Autonomous communities can set different minimums.

The national starting point is a €700,000 personal minimum plus a separate principal-home exemption of up to €300,000 when the home qualifies.

The following 4 exemptions or thresholds are especially relevant:

• €700,000 national minimum exemption applies under the state rules before calculating the progressive tax.
• €300,000 principal-residence exemption can apply to a qualifying habitual home.
• Qualifying business assets and company interests can receive exemptions when statutory ownership and activity tests are met.
• Regional minimums can differ. Valencia increased its 2025 minimum exemption to €1 million.

A married couple does not receive one pooled €1.4 million allowance. wealth tax is individual, so each spouse applies the allowance to assets legally attributed to that spouse.

That distinction matters for jointly owned property. If each spouse owns 50%, each reports the respective share and applies the exemption available under the applicable rules.

The Spain wealth tax threshold for 2026 filing therefore means the threshold applicable to 2025 assets filed in 2026, not a new 2026 tax-year allowance.

Spain wealth tax by region: Autonomous community variations

Spain wealth tax by region can differ materially because autonomous communities may set their own minimum exemptions, scales, deductions, and bonuses.

For 2025, Madrid and Andalucía also operate under transitional rules linked to the continued Solidarity Tax.

A taxpayer with the same €2 million net wealth can receive a different wealth tax result depending on the autonomous community that has taxing authority.

 

Madrid should therefore not be described as automatically “wealth tax free” for every high-net-worth resident in 2025.

The same caution applies to wealth tax in Andalucía, Spain. Its historic 100% bonus interacts with transitional legislation and the Solidarity Tax.

Valencia’s Spain wealth tax rules are also distinct. The €1 million minimum for 2025 is higher than the €700,000 national default, while its regional rate scale must still be applied.

The Basque Country requires a separate review because its provincial tax authorities operate under the foral system rather than one uniform state wealth tax schedule.

Who pays wealth tax in Spain? Residents vs. nonresidents

Spanish residents can be subject to wealth tax on worldwide assets, while nonresidents are generally taxed by real obligation on Spanish-situs assets and rights.

Spanish tax residence can arise after more than 183 days or when Spain is the main base of economic interests.

A US expat who becomes a Spanish tax resident can bring foreign brokerage accounts, real estate, and other overseas economic rights into Spain’s wealth tax analysis.

The following 4 distinctions determine who pays wealth tax in Spain:

1. Spanish tax residents: Worldwide assets enter the calculation, subject to exemptions and regional rules.
2. Nonresidents: Tax is generally limited to assets and rights situated, exercisable, or enforceable in Spain.
3. Residence tests: More than 183 days is one test, but Spain can also look to the center of economic interests.
4. Family facts matter: Spanish law contains a rebuttable residence presumption involving a spouse and dependent minor children.

Spain's wealth tax for non-residents should not be confused with the US substantial presence test.

The US test determines US tax residency for certain foreign nationals. See TFX’s explanation of the US substantial presence test for foreign nationals for that separate rule.

For US citizens, Spanish tax residency does not terminate US citizenship-based filing.

That creates simultaneous Spanish tax residency for US citizens and continuing US worldwide-income reporting.

The Beckham Law and its impact on wealth tax for US expats

Qualifying taxpayers who elect Spain’s Article 93 special regime are wealth tax taxpayers by real obligation.

The regime can apply for the year Spanish residence begins plus the following 5 tax years, creating a potential 6-year period.

For wealth tax purposes, a qualifying Beckham Law taxpayer can limit the tax base to assets and rights within Spain rather than worldwide wealth.

The Beckham Law in Spain was expanded to cover more categories, including certain remote workers, professionals, entrepreneurs, investors, and qualifying family members.

Eligibility is not automatic.

The current regime includes conditions relating to prior Spanish residence, the reason for moving to Spain, and the taxpayer’s work or business circumstances.

A US expat with most investments in the United States can therefore have a very different wealth tax result under Article 93 than under ordinary Spanish-resident rules.

The income-tax trade-off must also be reviewed. A lower wealth tax base does not automatically mean Article 93 produces the lowest combined Spanish and US tax.

How US retirement accounts (401(k), IRA) are treated under Spain’s wealth tax

US retirement accounts should not be assumed exempt from Spanish wealth tax.

The AEAT’s 2025 manual states that pension-plan rights established in non-EU countries cannot use the specific wealth tax exemption granted to qualifying Spanish, EU, and pan-European pension arrangements.

A US 401(k) or IRA does not receive the Spanish pension-plan exemption merely because US law gives the account tax-deferred or tax-advantaged treatment.

The following 4 points matter for Spain wealth tax and 401(k) or IRA holdings:

• Non-EU pension plans do not qualify for the cited Spanish pension-plan exemption.
• The US–Spain income tax treaty does not create a wealth tax exemption for US retirement accounts.
• Article 93 or ordinary nonresident status can change the result because wealth tax is then based on Spanish-connected assets.
• Valuation depends on the legal and economic rights in the specific arrangement, so plan documents matter.

This is more precise than saying every 401(k) or IRA must automatically be entered at its brokerage statement balance.

Spain’s rules look to the economic right held by the taxpayer. US retirement products do not all create identical rights to withdrawal, ownership, insurance value, or pension benefits.

A Spanish adviser should classify the particular plan before the 2025 Modelo 714 is filed.

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What assets count toward Spain’s wealth tax? Valuation rules

Spain values each asset category under statutory rules rather than using one December 31 market-value test.

For 2025, real estate, bank accounts, listed investments, private-company interests, insurance, personal property, and deductible debts each have separate valuation rules.

How does Spain's wealth tax work? It first values each taxable asset under the rule for that asset, subtracts qualifying debts, then applies exemptions, the minimum allowance, the relevant tax scale, and applicable deductions or bonuses.

The following 7 categories cover common US-expat assets:

• Real estate: Use the highest of cadastral value, tax-administration value used or verified for other taxes, or acquisition value.
• Bank deposits: Compare the December 31 balance with the average balance for the final quarter under the statutory rule.
• Listed shares: Most ordinary listed shares use the average quoted value for the fourth quarter.
• Investment funds: Collective-investment interests have separate net-asset-value rules.
• Unlisted shares: Valuation can depend on an audited balance sheet or statutory alternative calculations.
• Insurance, vehicles, jewelry, art, and other rights: Specific surrender-value or market-value rules apply.
• Debts: Properly documented, existing debts are generally valued at nominal amount on December 31.

Spanish real estate is therefore not automatically reported at cadastral value.

If acquisition value or a value determined by the tax administration is higher, that higher figure can control the wealth tax valuation.

The same care is required with foreign brokerage accounts. A December 31 statement alone may not provide the fourth-quarter average required for certain listed securities.

The 60% rule: Spain’s wealth tax cap for residents

Spain’s 60% rule limits the combined burden of specified IRPF and wealth tax amounts under a statutory formula.

The wealth tax reduction itself cannot exceed 80%, leaving at least 20% of the otherwise calculated wealth tax payable.

The Spain wealth tax 60% rule is a limitation formula, not a general exemption for taxpayers whose assets are high relative to income.

Certain income and asset amounts are excluded or adjusted when the calculation is made.

Comparing the final tax bill with gross salary alone therefore does not establish the cap.

A major 2025 development widened its relevance.

Spain’s Supreme Court held in judgments 1372/2025 and 1402/2025 that the limitation also applies to taxpayers subject to wealth tax by real obligation, including qualifying nonresidents.

That corrects older explanations that described the cap as available only to Spanish residents.

For asset-heavy retirees or investors, the 20% minimum floor still matters even when the limitation substantially reduces the initial wealth tax calculation.

US–Spain tax treaty: Does it help with wealth tax?

The US–Spain income tax treaty does not cover Spain’s wealth tax.

The Treasury technical explanation states that Spain imposed a capital tax but taxes on capital were excluded because the United States did not impose a corresponding capital tax.

Because the wealth tax is outside the treaty’s taxes-covered article, paying Spanish wealth tax does not create treaty relief equivalent to the Foreign Tax Credit available for qualifying foreign income taxes.

The US–Spain tax treaty documents remain important for income such as pensions, employment income, dividends, interest, and capital gains. They do not convert an annual Spanish net-worth tax into a US income tax.

For Form 1116, a foreign levy must satisfy the foreign-tax-credit rules. TFX explains those tests in its Form 1116 Foreign Tax Credit guide.

Spain’s wealth tax is imposed on net wealth rather than net income.It therefore should not be treated as an ordinary creditable Spanish income tax on Form 1116.

A dual-country review is sensible where the same assets also generate taxable interest, dividends, rental income, capital gains, or pension distributions.

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Filing the Spanish wealth tax return: Deadlines and compliance

The 2025 Spanish wealth tax return is filed electronically on Modelo 714 from April 8 through June 30, 2026.

If payment is made by direct debit, the filing cutoff is June 25, 2026.

Spain's wealth tax for expats uses the same 2025 Modelo 714 filing campaign, although residence status and the applicable state or regional rules affect the calculation.

The following 5 filing points apply to the 2025 return:

• Tax measurement date: December 31, 2025.
• Online filing opens: April 8, 2026.
• General filing deadline: June 30, 2026.
• Direct-debit filing cutoff: June 25, 2026.
• Electronic filing: Modelo 714 must be filed online.

A return can also be required when no wealth tax is payable.

Under the national filing rule, taxpayers generally must file if tax remains due after applicable deductions and bonuses or if gross assets and rights exceed €2 million.

Late payment or filing can produce Spanish surcharges, interest, or penalties depending on what was missed and when it is corrected.

US expat tax obligations in Spain run on separate calendars.

Modelo 714 should therefore be tracked alongside Form 1040, FBAR, and any Form 8938 obligation.

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US reporting obligations for US expats in Spain: FBAR, FATCA, and Form 8938

US citizens and resident aliens abroad continue to report worldwide income for 2025.

FBAR applies when foreign financial accounts exceed $10,000 in aggregate at any time, while Form 8938 uses higher thresholds that depend on filing status and residence abroad.

Spanish wealth tax, FBAR, Form 8938, and Modelo 720 are separate filing systems with different asset definitions and thresholds.

The following 4 reporting obligations commonly overlap:

• FBAR: File FinCEN Form 114 if aggregate foreign financial accounts exceeded $10,000 at any point in 2025.
• Form 8938: Qualifying taxpayers living abroad can face $200,000/$300,000 or $400,000/$600,000 thresholds.
• Modelo 720: Spanish residents can have separate foreign-asset information reporting.
• Spanish financial accounts: The same account can appear on both FBAR and Form 8938 when each test is met.

For taxpayers living abroad and not filing jointly, the Form 8938 threshold is more than $200,000 at year-end or more than $300,000 at any time.

For qualifying joint filers abroad, those figures rise to more than $400,000 and $600,000.

The FBAR deadline for 2025 accounts was April 15, 2026, with an automatic extension to October 15, 2026.

TFX’s FBAR vs. Form 8938 comparison explains which assets belong on each report. FATCA reporting in Spain does not replace FBAR reporting. The two forms are administered under different laws and use different definitions.

IRS reporting of Spanish assets also continues even if a taxpayer claims the Foreign Earned Income Exclusion. The exclusion affects qualifying earned income.It does not switch off worldwide-income reporting or foreign-account disclosure requirements.

Foreign Earned Income Exclusion and Foreign Tax Credit: US tax relief for Spain expats

For 2025 income filed in 2026, the Foreign Earned Income Exclusion is capped at $130,000 per qualifying person.

Form 1116 instead claims a Foreign Tax Credit for eligible foreign income taxes, subject to the US credit limitation.

Choosing between the FEIE and Foreign Tax Credit can materially change a US expat’s 2025 return, but Spanish wealth tax itself is not the same as Spanish income tax.

The Foreign Earned Income Exclusion in Spain is claimed on Form 2555 after satisfying the foreign tax-home requirement and either the bona fide residence or physical presence test.

For 2025, the maximum exclusion is $130,000. The $132,900 figure applies to 2026 income, not to the 2025 return being filed in 2026.

The Foreign Tax Credit in Spain is commonly relevant because Spanish income-tax rates can produce creditable income taxes. Form 1116 does not provide a dollar-for-dollar credit for every foreign levy. The tax must satisfy the IRS rules for a foreign income tax or qualifying tax in lieu of income tax.

TFX compares these choices in its guide to the Foreign Tax Credit vs. Foreign Earned Income Exclusion.

Based on our client scenario at TFX: a salaried US expat paying high Spanish IRPF may obtain more value from the FTC than FEIE.

NOTE! Wages, passive income, carryovers, child credits, and prior elections can change the answer.

Modelo 720: Spain’s foreign asset declaration and its interaction with wealth tax

Modelo 720 is an information return rather than a wealth tax payment form.

Spanish residents can have a filing obligation once a foreign-asset category exceeds €50,000, with later filings triggered in specified cases including increases exceeding €20,000.

Modelo 720 in Spain and Modelo 714 are separate obligations, even when the same foreign account, investment, or property appears in both filings.

The principal Modelo 720 categories cover foreign bank accounts, securities or financial rights, and foreign real estate.

The normal reporting period runs from January 1 through March 31 of the following year.

Once a category has previously been reported, another annual filing is not automatically required merely because the asset still exists.

A new filing can be triggered when the category rises by more than €20,000 from the amount that generated the prior filing or another statutory reporting event occurs.

The Court of Justice of the European Union ruled in January 2022 that parts of Spain’s original sanction system were disproportionate.

Spain changed the penalty regime, but the Modelo 720 filing obligation remains. US expats can use one reconciled asset schedule to support Spanish reporting and US FBAR or FATCA work.

TFX’s guide to foreign asset disclosure for US taxpayers explains the US side of overlapping asset reporting.

Recent changes to Spain’s wealth tax: What changed and what is next

For tax year 2025, both the wealth tax and the Solidarity Tax remained in force.

Major recent developments include the continued national floor, expanded Article 93 eligibility, revised regional bonus rules, Modelo 720 changes, and 2025 Supreme Court decisions on the 60% limitation.

The key Spain wealth tax news for 2026 is continuation rather than repeal: taxpayers filing 2025 returns still face the established wealth tax system plus the Solidarity Tax where applicable.

The following 5 developments matter most:

• Solidarity Tax: Law 38/2022 created the tax, which was later extended beyond its initial temporary period.
• Beckham regime: Eligibility expanded to additional workers, entrepreneurs, investors, and qualifying family situations.
• Regional bonuses: Madrid and Andalucía apply transitional rules while the Solidarity Tax remains in force.
• 60% limitation: 2025 Supreme Court rulings extended the rule to qualifying taxpayers taxed by real obligation.
• Modelo 720: The reporting duty remains after Spain revised the sanction regime following the 2022 EU court judgment.

No enacted 2025 rule abolished wealth tax nationally.

Future political proposals should therefore be separated from law already in force. A proposed repeal does not change a December 31 valuation or Modelo 714 filing requirement.

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