Wealth and solidarity taxArticle 2 of 5 · 4 min read
The solidarity tax on large fortunes (Impuesto de Solidaridad)
Explains who pays Spain's state tax on very large fortunes, the threshold and rates, whether it is permanent, and how it works alongside regional wealth tax. It is for newcomers with substantial worldwide or Spanish assets.
Terms used
- Patrimonio — Patrimonio is the yearly wealth tax on what you own above an allowance.
- Solidarity tax — The solidarity tax is an extra yearly tax on very large fortunes.
- Impuesto de Solidaridad — The Impuesto de Solidaridad is a state tax on very large net wealth, payable on top of any regional wealth tax, with a credit for the latter.
- Modelo 718 — The Modelo 718 is the tax form used to declare and pay the solidarity tax to the tax agency.
- Impuesto sobre el Patrimonio — The Impuesto sobre el Patrimonio is the wealth tax on your net assets, set and collected by the regions.
- Bonificación — A bonificación is a rebate that cuts a tax bill, here sometimes down to zero.
Key rules
- Threshold: The allowance is 700,000 EUR, but nothing is payable unless taxable wealth exceeds 3 million EUR.
- Status: The tax is permanent and has been upheld as a state tax against regional challenges.
- Credit: Wealth tax you actually paid is deducted from the solidarity tax, and never gives a refund.
- Regional rebates: A regional wealth tax rebate does not lower this tax, so you may pay it in full.
Who pays the solidarity tax
You pay the Impuesto de Solidaridad only if your net wealth is very large. It has a 700,000 EUR allowance, and in practice nothing is payable unless taxable wealth exceeds 3 million EUR. If your net wealth is below that, you can stop reading: this tax does not affect you.
It is a state tax. It applies to individuals whether they are resident or non-resident, and it is filed with the tax agency on Modelo 718.
Is it still in force?
Yes. It started as a temporary tax for 2022 and 2023, but a later law removed the end date, so it now applies indefinitely. Several regions, including Andalucía, Madrid and Galicia, challenged it in the Constitutional Court. The court rejected the main challenges and upheld it as a state tax. Some related court disputes, mainly about the regional wealth tax credit, are still going on.
Rates
The scale applies to your taxable base, which is your net wealth after the allowance and exemptions:
| Taxable base | Rate |
|---|---|
| Up to 3,000,000 EUR | 0% |
| 3,000,000 to 5,347,998.03 EUR | 1.7% |
| 5,347,998.03 to 10,695,996.06 EUR | 2.1% |
| Above 10,695,996.06 EUR | 3.5% |
How your wealth is counted
The tax uses the same rules as the regional wealth tax (Impuesto sobre el Patrimonio) for who is taxable, what is exempt and how assets are valued. Exemptions include your habitual home up to its cap and qualifying family businesses.
The differences are these:
- The scale is set by the state and is the same everywhere.
- There are no regional allowances, bonuses or rebates.
- You get a credit for wealth tax you actually paid.
How it interacts with wealth tax
The wealth tax you actually paid for the same year is deducted from the solidarity tax you owe. Your region's wealth tax rules do not change the solidarity tax itself.
Some regions, such as Madrid and Andalucía, apply a full rebate (bonificación), so you pay no wealth tax there. In that case there is little or no credit to deduct, and you pay the solidarity tax in full above the 3 million EUR threshold.
The credit can only reduce what you owe to zero. It never produces a refund.
Regional wealth tax rules can change from year to year, so check your region's current position before you plan around it. The questions below cover what happens if your region cancels its wealth tax.
Frequently asked questions
Is the solidarity tax still in force or was it temporary?
Yes, the solidarity tax is still in force, because it was first created as temporary for 2022 and 2023 but later made indefinite.
If my region cancels wealth tax, do I still pay the solidarity tax?
Yes, you still pay the solidarity tax if your taxable wealth is above the threshold, even when your region gives a full rebate on wealth tax. Where the rebate makes your wealth tax nil, there is little or no credit to subtract, so the solidarity tax is paid in full.
Can the wealth tax I paid give me a refund of solidarity tax?
No, the credit for wealth tax paid can only reduce the solidarity tax you owe, never produce a refund. It is deducted from the solidarity tax for the same year. If your wealth tax is higher than the solidarity tax, the extra is not returned.
Does my regional wealth tax allowance lower my solidarity tax?
No, regional allowances and rebates do not change the solidarity tax. It uses the state allowance and a state-only scale, with no regional bonuses. Valuation and exemptions, such as for your habitual home and qualifying family businesses, follow the wealth tax rules.
More in Wealth and solidarity tax
Need certainty before you act?
For important relocation decisions, speak with a qualified human specialist.
Always verify important information with the relevant official authority or a qualified adviser before acting. This website uses large language models together with various public data sources, official government documents and other established sources. Due to the amount of data on this website, some information might be wrong. Information may also be incomplete or outdated.