Spain Wealth Tax Planning 2025: Patrimonio Strategies by Region

Spain Wealth Tax Planning for 2025

Spain’s wealth tax (Impuesto sobre el Patrimonio) and the temporary solidarity tax impact high-net-worth residents. Strategic planning can reduce liabilities while maintaining compliance.

Know the Exemptions

Residents benefit from a €700,000 general exemption and an additional €300,000 for the primary residence. Regional rules vary—Madrid offers a 100% rebate, while Catalonia and Valencia apply higher rates. Non-residents pay tax on Spanish assets only, with a €700,000 exemption in many regions.

Asset Valuations

Valuations follow specific rules: real estate uses the highest of cadastral, acquisition, or tax-administration values; securities use year-end market prices; insurance and pensions follow surrender values. Maintain documentation to support declared figures.

Debt and Loss Offsets

Eligible debts as of December 31 reduce the taxable base. For mortgages, only outstanding principal counts; ensure loans are properly registered. Consider restructuring ownership via family companies or usufruct arrangements to optimise exemptions.

Solidarity Tax (ISGF)

The solidarity tax applies to net wealth above €3 million nationwide with rates of 1.7%–3.5%. Taxes paid under regional wealth tax regimes can offset the solidarity tax, preventing double payment.

Planning Tip: Review residency status, consolidate assets in favourable regions, and coordinate wealth tax planning with income tax and inheritance strategies.