Published: 12-05-2025
If you are not a tax resident in Spain but own assets or rights located within Spanish territory, you may be subject to the Spanish Wealth Tax. This tax, which applies to the net worth of individuals, affects not only Spanish residents but also non-residents. In this article, we explain your tax obligations, applicable exemptions, how to file your return, and strategies you can apply to legally optimize your tax burden.
Who is required to pay?
As a non-resident, you are taxed under real obligation, meaning only for assets and rights of economic content located in Spain. Unlike residents, who are taxed on their worldwide assets, non-residents are only taxed on the portion of their assets located in Spain.
Examples of taxable assets for non-residents include:
- Real estate located in Spain
- Shares in Spanish companies
- Bank accounts held in Spanish financial institutions
- Movable property physically located in Spain
The tax is assessed as of December 31 each year. There is no formal tax period, which means that if you pass away before that date, there is no Wealth Tax liability for that year.
What is the tax-free allowance?
Non-residents benefit from a tax-free allowance of €700,000, provided they are taxed under real obligation. If the value of your assets in Spain does not exceed this amount, you are not required to pay the tax.
State tax rates
Since 2021, the state tax scale is progressive, ranging from 0.2% to 3.5%, depending on the net value of the taxable assets. Spain’s autonomous communities may apply different scales or deductions, which can be relevant if you have connections to a specific region, as we will explain later.
Which exemptions may apply to non-residents?
Some exemptions are available to non-residents, including:
- Spanish public debt and certain fixed-income securities
- Holdings in foreign entities, provided there is no permanent establishment in Spain
- Assets used for business or professional activities conducted in Spain
Important: Balances in bank accounts held by non-residents are not exempt.
What if there is a double taxation treaty?
Spain has signed many Double Taxation Treaties (DTTs), some of which contain specific provisions on wealth tax, based on the OECD model. These treaties may limit Spain’s right to tax certain assets.
For example, if you are a resident in a country whose DTT grants exclusive taxing rights over shares to the country of residence, you may be exempt from paying wealth tax in Spain on those shares. You must provide proof of your tax residency and review the specific treaty between your country and Spain.
When must you file a return?
You are required to file a Wealth Tax return if:
- The amount payable is positive after deductions and credits, or
- The total value of your assets in Spain exceeds €2,000,000, even if no tax is due.
The return must be filed electronically using Form D-714, and submitted with a digital certificate, electronic DNI, Cl@ve PIN, or reference number (RENØ).
Can you apply regional tax rules?
Since July 11, 2021, non-residents may choose to apply the tax rules of the autonomous community where the highest value of their Spanish assets is located. This option can be more favorable, as some regions apply reduced rates or generous deductions. To make this choice, you must mark the corresponding box in your tax return.
Is it necessary to appoint a tax representative?
In some cases, yes. You must appoint a tax representative in Spain if:
- You operate through a permanent establishment, or
- The Tax Administration requires it due to the size or nature of your assets
Additionally, the custodian or manager of the assets (such as a bank or property manager) may be held jointly liable for the tax payment.
Which authority is responsible?
As a non-resident with no domicile in any autonomous community, the competent authority for managing this tax is the Spanish Tax Agency (Agencia Estatal de Administración Tributaria – AEAT).
Special regime under Article 93 (Beckham Law)
This special regime allows certain inbound workers — including, since 2023, entrepreneurs and digital nomads — to be taxed as non-residents. While they declare income tax under a special form (Form 151), they remain subject to the Wealth Tax under real obligation and may choose to apply regional tax rules based on their place of residence in Spain.
The New Temporary Solidarity Tax on Large Fortunes
Since 2023, the Temporary Solidarity Tax on Large Fortunes (ITSGF) has been in effect. It applies to individuals with net assets exceeding €3,700,000. This tax is levied at the national level and is particularly relevant in regions such as Madrid, where a 100% rebate applies to the standard Wealth Tax.
Although both taxes are technically compatible, the purpose of the ITSGF is to ensure that large fortunes do not go untaxed in certain autonomous communities.
Strategies to optimize your tax burden
Here are some measures that may help you reduce your Wealth Tax liability:
- Structuring your assets through foreign companies or shared ownership
- Using double tax treaties to identify exempt assets
- Applying the most favorable regional tax rules
- Reviewing your asset portfolio and valuations regularly
- Seeking advice from an international tax expert to ensure compliance and avoid costly mistakes
At Gentile Law, we have a team of experts in international taxation who can help you analyze your situation as a non-resident and legally optimize your Wealth Tax exposure in Spain. We assist you at every step — from wealth planning to tax return filing — ensuring full compliance and protecting your financial interests.