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Wealth Tax Pillar

Wealth Tax in Spain and Valencia: What HNW Movers Actually Pay

Spain levies an annual Impuesto sobre el Patrimonio (Wealth Tax) on your net assets, and it is a regionally-ceded tax, so the bill in the Comunitat Valenciana is very different from Madrid. Here is the 2026 version of the guide we walk every high-net-worth client through before they pick a region.

€700kState personal exemption

€500kValencia personal exemption

3.5%Top marginal rate (CV)

€3M+Solidarity Tax threshold

Michael BastinFounder, ValenciaMove

Resident in Valencia since 2016. Founder of BeTranslated. 25+ years in translation, interpretation and multilingual SEO.

Reviewed 11 June 2026 by Michael Bastin

A note from Michael: I am a relocation expert, not a wealth-tax payer talking his own book. But the question I get most from high-net-worth clients eyeing Valencia is some version of "will the region tax my net worth?" The honest answer surprises people: the Comunitat Valenciana is one of the higher wealth-tax regions in Spain, not a tax haven like Madrid. I have watched clients with serious assets choose their autonomous community on this single line item, and I would rather you hear it from me upfront than from an adviser after you have signed a lease. None of this is tax advice. Confirm the current thresholds with a qualified Spanish adviser before you act.

Figures verified June 2026. Wealth tax is regionally-ceded and changes often. Confirm current thresholds and rates with a qualified adviser before filing.

What wealth tax is and who pays it

The Impuesto sobre el Patrimonio (IP) is an annual tax on your net worth: your assets minus your debts, measured at 31 December each year. It is filed on Modelo 714, alongside your income tax return (Modelo 100), with a deadline of roughly 30 June for the prior year.

Who pays depends on your residency. Spanish tax residents are taxed on their worldwide net assets. Non-residents pay only on Spanish-situated assets, such as a Valencia apartment or a Spanish brokerage account. This single distinction is why your residency status and your region both matter so much.

State framework vs the Comunitat Valenciana

The state sets a default framework, but because wealth tax is regionally-ceded, each autonomous community can set its own exemption and rates. The Comunitat Valenciana uses its own scale with a LOWER personal exemption than the state default, which makes it a relatively high wealth-tax region. Madrid, by contrast, applies an effective rebate of around 100%, so residents there usually pay nothing.

What applies	State default	Comunitat Valenciana	Madrid
Personal exemption	€700,000 per person	€500,000 per person	Effectively n/a (full rebate)
Main-home allowance	Up to €300,000	Up to €300,000	Up to €300,000
Rate range	~0.2% to 3.5%	Own scale, top rate 3.5%	~100% rebate, effectively 0%

If you are a high-net-worth relocator choosing where to settle, this is the line that matters: a resident of the Comunitat Valenciana with the same balance sheet as a Madrid resident can owe real wealth tax while the Madrid resident owes nothing. We flag this clearly before any region decision.

The Solidarity Tax (ITSGF) and how it interacts

On top of the regional wealth tax, Spain runs a STATE tax called the Impuesto Temporal de Solidaridad de las Grandes Fortunas (ITSGF), or Solidarity Tax. It applies to net wealth above €3,000,000. With the €700,000 exemption plus the main-home allowance, the practical threshold rises to roughly €3.7M. Rates run 1.7%, 2.1% and 3.5% by band. It was introduced for 2022 to 2023 and has since been extended and made indefinite.

The key mechanic is the credit: the Solidarity Tax credits any regional wealth tax you have already paid. So it mainly bites residents of zero-wealth-tax regions like Madrid, where there is no regional tax to offset it. In the Comunitat Valenciana, where regional wealth tax IS levied, the Solidarity Tax usually adds little or nothing on top, because your regional bill already absorbs most of it.

How the Beckham Law changes the picture

This matters most for US and other high-net-worth expats. Taxpayers under the Beckham regime are taxed for wealth tax like non-residents, meaning only on Spanish-situated assets, not on worldwide net worth. Your overseas brokerage, foreign property and offshore holdings stay out of scope while you are under Beckham. For an asset-heavy mover, that can be the difference between a meaningful annual wealth-tax bill and almost none.

Filing: Modelo 714, deadline and valuation basics

Wealth tax is self-assessed on Modelo 714, filed alongside your income tax campaign with a deadline of around 30 June for the prior calendar year. You value assets at 31 December: real estate at the highest of cadastral, purchase or AEAT-checked value; listed securities at year-end market value; bank balances at the higher of year-end or average Q4 balance.

Even if your net worth sits below the filing threshold, you may still have to file if your gross assets exceed €2,000,000. When in doubt, file. A missed Modelo 714 carries penalties, and it interacts with your Modelo 720 foreign-asset reporting.

Wealth Tax FAQ

Do I pay wealth tax in Valencia if I am a tax resident?

If you are a Spanish tax resident in the Comunitat Valenciana, you are taxed on your worldwide net assets above the regional personal exemption of 500,000 EUR (verified June 2026), plus a main-home allowance of up to 300,000 EUR. Valencia uses its own scale topping out at 3.5%. Net worth below the exemption means no wealth tax, but you may still need to file Modelo 714 if your gross assets exceed 2,000,000 EUR. Confirm current thresholds with a qualified adviser.

Why is Valencia more expensive for wealth tax than Madrid?

Wealth tax is a regionally-ceded tax, so each autonomous community sets its own exemption and rates. Madrid applies an effective rebate of around 100%, so residents there usually pay nothing. The Comunitat Valenciana instead applies its own scale with a lower personal exemption of 500,000 EUR (versus the 700,000 EUR state default) and a top rate of 3.5%. With the same balance sheet, a Valencia resident can owe real wealth tax while a Madrid resident owes nothing. This is a key factor for high-net-worth movers choosing a region.

What is the Solidarity Tax and will I pay it in Valencia?

The Impuesto Temporal de Solidaridad de las Grandes Fortunas (ITSGF), or Solidarity Tax, is a state tax on net wealth above 3,000,000 EUR, with the exemption lifting the practical threshold to around 3.7M EUR including a main home. Rates run 1.7%, 2.1% and 3.5% by band. Crucially, it credits any regional wealth tax you have already paid, so it mainly affects residents of zero-wealth-tax regions like Madrid. In Valencia, where regional wealth tax is already levied, the Solidarity Tax usually adds little or nothing on top.

Does the Beckham Law reduce my wealth tax?

Yes. Taxpayers under the Beckham regime are treated as non-residents for wealth tax, which means you are taxed only on Spanish-situated assets, not on your worldwide net worth. Your foreign brokerage, overseas property and offshore holdings stay out of scope while you are under Beckham. For an asset-heavy expat, especially from the US, this can be the difference between a meaningful annual wealth-tax bill and almost none. The Beckham election is filed separately on Modelo 149.

When and how do I file wealth tax in Spain?

Wealth tax is self-assessed on Modelo 714, filed alongside your income tax return (Modelo 100) with a deadline of around 30 June for the prior calendar year. You value your assets as at 31 December: real estate at the highest of cadastral, purchase or tax-checked value; listed securities at year-end market value; and bank balances at the higher of the year-end or average fourth-quarter balance. Even below the taxable threshold you may need to file if gross assets exceed 2,000,000 EUR. When in doubt, file.