In short
Spain's wealth tax (Impuesto sobre el Patrimonio) is an annual tax on the net value of your Spanish assets if they exceed €700,000. For non-residents, only Spanish assets count — not your worldwide wealth. Rates range from 0.2% to 3.5% depending on the value. The Balearic Islands apply their own graduated scale. You file Modelo 714 by 30 June each year for the previous year's wealth.
Who pays Spanish wealth tax?
Non-residents pay wealth tax only on assets located in Spain. If your only Spanish asset is your Mallorca property, only that property's value counts toward the threshold.
The general exemption threshold for non-residents is €700,000 of net Spanish assets.
Note: This is not the market value of your property — it is the higher of:
- The cadastral value
- The value declared for ITP purposes (purchase price)
- The value checked by Hacienda
For most non-residents with one Mallorca property, the relevant value will be close to the purchase price.
Balearic Islands wealth tax rates (2026)
Example: Property valued at €900,000, no mortgage, €700,000 exemption.
- Taxable base: €200,000
- Tax: approximately €828 per year
What reduces your taxable wealth?
You can deduct from your Spanish asset value:
- Outstanding mortgage balance on the property
- Other Spanish debts directly linked to Spanish assets
You cannot deduct personal loans from your home country, credit cards, or any liabilities not linked to Spanish assets.
The Solidarity Levy (Impuesto de Solidaridad)
In 2023, Spain introduced a temporary Solidarity Levy that runs alongside wealth tax for very high-value portfolios. It applies to taxpayers with net Spanish assets over €3,000,000 at a rate of 1.7–3.5%. For most non-residents with a single Mallorca holiday home, this does not apply.
When and how to file
Wealth tax (Modelo 714) must be filed by 30 June of the following year. For the 2025 tax year, file by 30 June 2026.
Filing is online through the Agencia Tributaria portal if you have an FNMT digital certificate, or via a gestoría.
Combine your Modelo 210 and Patrimonio filing
If you use a gestoría, ask them to handle both Modelo 210 and Patrimonio in the same engagement — they share the same underlying figures and the combined cost is usually lower than two separate filings.
Professional help
Need help with this?
Spanish tax filings and bureaucracy can be complex. A local gestoría can handle Modelo 210, NIE applications, and other filings on your behalf.
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