Wealth Tax Spain

About Wealth Tax Spain

Spain has had a wealth tax since 1977. The tax applies to net wealth over 700,000, with rates from 0.2 to 3.5 percent. The primary residence is exempt up to 300,000. The wealth tax is levied annually. Regional governments in Spain can modify the rates and thresholds. Madrid effectively abolished the wealth tax through a 100 percent bonus. In 2023, the Spanish government introduced a solidarity tax on wealth over 3 million to ensure that residents in regions that abolished the wealth tax still pay. The Spanish wealth tax has been controversial. Critics argue it drives capital out of Spain, while supporters argue it is needed to address inequality.