Wealth Tax and the Solidarity Tax in Spain: Who Actually Pays
By David Los · October 2026 · Costs & Taxes
Spanish wealth tax (Impuesto sobre el Patrimonio) is an annual tax on net assets, but most Costa del Sol owners in Andalucía pay nothing at all because the region rebates the regional charge 100%. Since 2023 the national temporary solidarity tax on large fortunes (ITSGF) still applies when your net wealth exceeds 3 million euros on 31 December, with a 700,000 euro allowance and progressive rates of 1.7%, 2.1% and 3.5% on the slice above 3 million euros of taxable base. In practice the tax matters for villa portfolios and very high net worth buyers, not for a single mid-market apartment. This guide explains both taxes, how Andalucía differs from Valencia or Catalonia, what non-residents count, and how our live inventory medians sit against the thresholds.
Do most Costa del Sol buyers pay wealth tax?
No. A single resale home around the coast median does not, by itself, put a typical international buyer anywhere near Spain's wealth tax thresholds. Andalucía, which covers Marbella, Estepona, Málaga and the rest of the Costa del Sol, applies a 100% rebate on the regional Impuesto sobre el Patrimonio, so the autonomous charge is zero for almost everyone who would otherwise owe it. What remains is the national solidarity tax on large fortunes (ITSGF), which only bites when net wealth on 31 December exceeds 3 million euros. The annual holding costs that actually move budgets for normal owners are IBI, community fees and Modelo 210, not wealth tax. The full ledger is in our guide to the costs of owning property in Spain.
Active Costa del Sol resale inventory: 7,775 listings, median asking price €650,000 and median €4,732 per m² in October 2026Source: Hometailor market data · October 2026 · View market data →
What is Spanish wealth tax?
Impuesto sobre el Patrimonio is an annual tax on the net value of your assets minus allowable debts, declared on form Modelo 714. Tax residents are taxed on worldwide net wealth; non-residents are taxed only on assets and rights located in Spain, which for most buyers means the property, bank accounts tied to the purchase, and any other Spanish situs assets. Each autonomous community sets its own scale and rebates on top of a state minimum, which is why the same net worth can produce a large bill in Catalonia and no regional bill at all in Andalucía. Valuation follows wealth tax rules: in general, urban property is taken at the higher of cadastral value, purchase price or the tax office reference value, not the price on a portal listing.
Why Andalucía is different from Valencia or Catalonia
Andalucía rebates 100% of the regional wealth tax quota for taxpayers who meet the conditions in the regional regulations, which is why the coast markets itself honestly as light on wealth tax compared with the Valencian Community or Catalonia, where progressive regional rates still apply on larger balances. That rebate does not delete the underlying obligation to file if you are otherwise in scope, and it does not turn off the national ITSGF layer described below. Buyers comparing Costa Blanca and Costa del Sol should treat regional wealth tax as one line in the tax comparison, not the whole story.
Andalucía applies a 100% rebate on the regional wealth tax quota under its autonomous wealth tax rulesSource: Agencia Tributaria, wealth tax manual (Andalucía) · October 2026 · View market data →
What is the solidarity tax (ITSGF)?
The Impuesto Temporal de Solidaridad de las Grandes Fortunas (ITSGF) was created by Ley 38/2022 and extended beyond its original two-year life. It applies to individuals whose net wealth on 31 December exceeds 3 million euros. The rules reuse wealth tax valuations and most exemptions, including the main home exemption up to 300,000 euros when the property qualifies as your habitual residence. Everyone gets a 700,000 euro reduction on the tax base, including non-residents. Wealth tax actually paid for the same year is credited against the ITSGF bill, so in Andalucía the regional rebate often means the solidarity tax is the only charge that remains for very large portfolios. Declarations use form Modelo 718, filed between 1 and 31 July of the following year.
ITSGF declarations (Form 718) are filed between 1 and 31 July of the year after the accrual date (31 December)Source: Agencia Tributaria, ITSGF filing deadlines · January 2026 · View market data →
ITSGF rates and bands in 2026
After the 700,000 euro allowance and other exemptions, the tax base is split into bands. The first 3 million euros of that base is taxed at 0%. The next slice up to 5,347,998 euros faces 1.7%, then 2.1% up to 10,695,996 euros, and 3.5% above that. Because the first 3 million euros of base sits at 0%, many owners who barely cross the 3 million euro net wealth threshold still owe little or nothing once allowances and the wealth tax credit are applied. The figure buyers remember from our ownership guide, roughly 3.7 million euros of net assets before meaningful ITSGF bites, is a planning shorthand for a simple case, not a statutory cliff.
| Taxable base (after allowances) | Rate on this slice | Cumulative note |
|---|---|---|
| Up to €3,000,000 | 0% | No ITSGF on this slice |
| €3,000,000 to €5,347,998 | 1.7% | First paying band |
| €5,347,998 to €10,695,996 | 2.1% | Middle band |
| Above €10,695,996 | 3.5% | Top band |
Tax residents vs non-residents: what counts
If you are tax resident in Spain, ITSGF looks at your worldwide net wealth on 31 December, the same universe as wealth tax. If you are not tax resident, only Spanish situs assets enter the calculation, typically the Costa del Sol home, Spanish bank balances and any other property or investments located in Spain. That is a crucial distinction for a British owner who keeps most wealth in the UK: a 900,000 euro Marbella villa is one line in the Spanish balance sheet, not the entire estate, for non-resident ITSGF purposes. Becoming tax resident, including through spending more than 183 days in Spain or having your centre of vital interests here, widens the base overnight. That overlap with income tax and Modelo 210 is why wealth tax planning belongs in the same conversation as residency by buying property, not in isolation.
Where Costa del Sol prices sit on the scale
Our October 2026 resale data shows how far typical stock sits from ITSGF territory. The coast-wide median is 650,000 euros across 7,775 listings, with about 30% of homes priced above 1 million euros. Town medians cluster well below the 3 million euro net wealth gate: Estepona at 610,000 euros, Fuengirola at 545,000 euros, Benalmádena at 620,000 euros. Premium pockets rise fast: Marbella at 850,000 euros, Benahavís at 945,000 euros, Puerto Banús at 950,000 euros, and The Golden Mile at 1,822,500 euros with 71% of listings above 1 million euros. Even two luxury properties plus liquid assets rarely reach 3 million euros of net Spanish wealth for a non-resident without other holdings, which is why we treat ITSGF as a portfolio question, not a single-purchase tax.
The Golden Mile median asking price is €1,822,500 across 150 active resale listings, with 71% priced above €1MSource: Hometailor market data · October 2026 · View market data →
Two worked examples: mid-market home vs portfolio
| Scenario | Spanish net assets (simplified) | Likely ITSGF in Andalucía |
|---|---|---|
| Non-resident, one Estepona apartment bought at €610,000 (town median), no other Spanish assets | About €610,000 after debt | None (below €3M threshold) |
| Tax resident, €2.5M worldwide net wealth including €900,000 Costa del Sol home | Full balance sheet counted | None if total net wealth stays under €3M on 31 December |
| Tax resident, €4.2M net wealth worldwide, Andalucía home is main residence | Base reduced by €700,000 allowance and up to €300,000 main home exemption before bands | ITSGF due on slice above zero band; regional wealth tax still rebated 100% |
Which forms and when
Wealth tax uses Modelo 714, with filing windows set each year by the Agencia Tributaria for the 31 December accrual. ITSGF uses Modelo 718 in July of the following year. Many Andalucía owners who are nowhere near 3 million euros in net wealth file neither. Owners who cross the threshold need both calculations coordinated, because ITSGF subtracts wealth tax already paid. Non-residents with only a holiday home usually focus on Modelo 210 imputed income instead; that annual bill is far more common on the coast. The arithmetic and deadlines for Modelo 210 are in our Modelo 210 guide.
How this fits an investment plan
Investors weighing Andalucía against other regions should read wealth tax together with transfer tax and rental rules, not as a standalone scare story. Andalucía's 7% ITP on resales and 100% wealth tax rebate remain genuine advantages over higher-tax regions, while ITSGF sets a national floor for very large estates. Anyone assembling multiple high-value assets in Spain should model ITSGF before the third purchase, not after. Broader yield and tax context is in our property investment guide and Benahavís price page, where much of the ultra-prime stock concentrates.
Written and reviewed by
Founder & Head of Research, Hometailor · Last reviewed: October 2026
Born and raised in Sweden, David has spent over a decade analysing property markets on the Costa del Sol and has guided hundreds of international buyers through Spanish purchases in English, Swedish and Polish. He writes and reviews all research content at Hometailor, and triangulates everything before it publishes: independent lawyers, agents inside and outside Hometailor, and the live market data behind this site.
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