Regional wealth tax allowances and what locks in your region

Terms used

• Mínimo exento — The mínimo exento is the amount of wealth your region does not tax.
• Bonificación — The bonificación is a rebate that reduces your wealth tax bill, in some regions down to zero.
• Agencia Tributaria — The Agencia Tributaria is Spain's national tax agency.
• Patrimonio — Patrimonio is the Spanish wealth tax, charged on what you own above an allowance.

Key rules

• Your region: Your region is the one where you were resident for more than 183 days of the year.
• Non-residents: If you are not resident in Spain, the region where your assets have the largest value applies.
• Basque Country and Navarra: These two have their own foral rules, separate from the other regions.
• Regional choices: Regions set allowances, rate scales and rebates, so the same assets can mean no tax in one region and a large bill in another.

Which region applies to you

Your region is the one where you were resident for more than 183 days of the year. Count your days in each region, and count temporary absences, such as a short trip abroad, as days spent in your region. A short trip does not change your region.

If you are not a resident of Spain, use the region where your assets have the largest value.

If you live in the Basque Country or Navarra, you follow a separate regime run by your foral treasury. The regional comparison below does not cover you. Read your foral treasury's rules instead.

What regions can change

Regions set three things, so the same assets can give very different bills:

• The minimum exempt allowance (mínimo exento). This is the amount of wealth that is not taxed. Many regions use the national default. Some set higher or lower values. Regional laws can change it every year.
• The rate scale. Some regions use their own scale. Many keep the state structure but with higher top rates than the state's 3.5%. Examples include Asturias and Extremadura at around 3.5–3.75%, and Catalonia up to about 3.48%.
• The rebate (bonificación). This is a reduction of the final bill.

Where regions stand on rebates

Madrid applies a 100% rebate, so you pay no wealth tax there. Andalucía, Galicia, Cantabria, Extremadura, Murcia, La Rioja and some other regions have introduced rebates or reductions, often 100% or close to it. In several of them the rebate depends on regional law that is renewed yearly. Catalonia, Asturias, Aragón and Valencia do not offer a full rebate.

Regions with their own rate scale include Catalonia, Aragón, Asturias, Valencia, Baleares, Cantabria, Extremadura, Castilla-La Mancha, Castilla y León, Galicia and Murcia.

Where to check your region's current rules

Check the current figures before you rely on any of the above. Each region's tax agency publishes its own allowances, scales and rebates, for example the Comunidad de Madrid, the Agència Tributària de Catalunya or the Junta de Andalucía tax pages. The Agencia Tributaria publishes the Patrimonio information and annual forms. Basque and Navarra foral treasuries publish their own rules.

Use the checklist below to work through your region step by step. The calculator gives an estimate by region.

Checklist

• Count your days of residence in each region during the year and find where you were resident for more than 183 days.

• Look up your region's minimum exempt allowance (mínimo exento) on its tax agency website or on the Agencia Tributaria, Spain's tax agency, site.

• Check whether your region gives a rebate (bonificación) on the wealth tax bill, and how large it is.

• Check whether your region uses its own rate scale and compare its top rate with the state's 3.5%.

Estimate your wealth tax by region

Work it out

What you enter

• Total value of all your assets on 31 December (EUR): Bank and investment statements, property valuations and other asset records at 31 December.
• Debts you can deduct (EUR): Mortgage and loan statements showing the balance on 31 December.
• Value of your main home (EUR): Your property valuation, tax value or purchase deed.
• Your region's minimum exempt allowance (EUR): Your region's tax authority. Enter 700,000 if your region has not set its own.
• Your region's rebate on the wealth tax bill (%): Your region's tax authority. Enter 100 for Madrid; enter 0 if your region gives no rebate.
• Your income tax base for the year (EUR): Your income tax return for the same year.

Figures used

• Main home exemption limit: 300,000 EUR (as of 2011)
• Combined tax cap as share of income tax base: 0.6 ratio
• Minimum share of wealth tax always payable: 0.2 ratio
• Scale bracket 2 starts at: 167,129.45 EUR
• Scale bracket 3 starts at: 334,252.88 EUR
• Scale bracket 4 starts at: 668,499.75 EUR
• Scale bracket 5 starts at: 1,336,999.51 EUR
• Scale bracket 6 starts at: 2,673,999.01 EUR
• Scale bracket 7 starts at: 5,347,998.03 EUR
• Scale bracket 8 starts at: 10,695,996.06 EUR

Worked example (with Total value of all your assets on 31 December 1,500,000 EUR, Debts you can deduct 100,000 EUR, Value of your main home 400,000 EUR, Your region's minimum exempt allowance 700,000 EUR, Your region's rebate on the wealth tax bill 0 %, Your income tax base for the year 100,000 EUR, Income tax you pay for the year 25,000 EUR)

When the sum misleads

• Foreign tax paid on the same assets can be credited against the bill. This estimate leaves it out, so your real bill may be lower.
• If your region sets its own rate scale, this estimate uses the state scale and will be off. Ask your region's tax authority for its scale.
• A result of zero does not mean you can skip the return if your gross assets exceed 2,000,000 EUR.

Frequently asked questions

Does Madrid really charge no wealth tax?

Yes, Madrid applies a 100% rebate (bonificación) on the wealth tax bill, but only if Madrid is your region.

Which regions do not give a full wealth tax rebate?

Catalonia, Asturias, Aragón and Valencia do not offer a full rebate. In these regions you can still owe tax once your wealth passes the allowance.

Do regions charge higher wealth tax rates than the state?

Yes, several regions use their own rate scale, and most keep the structure but with higher top rates than the state's 3.5%. Asturias and Extremadura go to around 3.5–3.75%, and Catalonia up to about 3.48%.

Are the Basque Country and Navarra covered by the same rules?

No, the Basque Country and Navarra have their own foral regimes with separate rules. Check the rules on their own foral treasury websites.

Does a short trip abroad change my region?

No, temporary absences count as time spent in your region, so a short trip does not move you.