Madrid, Andalusia suspend 100% wealth tax relief during solidarity tax
Edward Nguyen
A non-resident with Spanish assets may apply a region's wealth tax rules, but Madrid and Andalusia have set aside their full relief, and the law leaves open which regional items reach non-residents.
A Vietnamese tax resident who owns a Spanish home is liable to Spain’s wealth tax on assets located there, and may apply the rules of the region where the greatest value of those assets lies. Madrid and Andalusia each have a 100% wealth tax relief, but while Spain’s temporary solidarity tax on large fortunes remains in force, both replace it with a relief that depends on that tax.
The regional option
Under the fourth additional provision of the wealth tax law, non-residents may apply the rules of the autonomous community where the greatest value of their taxable Spanish assets lies. The tax agency’s 2025 manual states that this covers all non-residents, not only those resident in the EU or the European Economic Area.
It is an option, taken by ticking a box on the return, and whoever takes it must apply the region’s rules as a whole. Under the regional financing law, wealth tax revenue is ceded to a region only for taxpayers habitually resident there. This means a non-resident’s wealth tax is collected by the State whichever region’s rules are applied.
The texts read do not settle, item by item, what a non-resident who opts receives. The national law still fixes a EUR 700,000 exempt minimum and the state scale for non-residents, and several regional minimums are written for the region’s own residents.
Of the six regional codes read, only the Balearic one refers to the fourth additional provision of the wealth tax law: it says that its references to personal obligation are without prejudice to that provision.
What six regions provide for 2025
| Region | Exempt minimum | Scale | General relief |
|---|---|---|---|
| Madrid | EUR 700,000 | State scale, 0.2% to 3.5% | 100% relief suspended; differential relief instead |
| Andalusia | EUR 700,000 (state) | Own scale suspended; state scale | 100% relief suspended; differential relief instead |
| Valencia | EUR 1,000,000, worded for residents | 0.25% to 3.5% | None |
| Catalonia | EUR 500,000 | 0.21% to 3.48% while the solidarity tax lasts; 3.48% applies above EUR 20 million | None |
| Balearic Islands | EUR 3,000,000, worded for residents | 0.28% to 3.45% | None |
| Canary Islands | EUR 700,000, worded for residents | State scale | None |
Whether a non-resident who opts obtains a regional minimum, rather than the state EUR 700,000, is one of the points left open. The figures come from the tax codes of Madrid, Andalusia, Valencia, Catalonia, the Balearic Islands and the Canary Islands, and, for Valencia’s 2025 minimum, from Law 5/2025.
A Valencian law in force since 11 August 2026 raises the minimum for habitual residents to EUR 2,000,000. It carries no effects clause of its own, which indicates it reaches the 2026 tax year first.
Why Madrid and Andalusia no longer give 100%
Madrid’s tax code grants a 100% relief on wealth tax. A transitional provision added in December 2023, with effect from 1 January 2023, states that it “no será aplicable” while the solidarity tax is in force. In its place the taxpayer may claim a relief equal to the difference, if any, between the wealth tax due and the solidarity tax that would be due.
Andalusia applies the same mechanism from 2024 and has also set aside its own scale while the solidarity tax lasts. For residents of Andalusia, the tax agency states that no solidarity tax return is due, because no amount results payable under that tax, and that they pay wealth tax alone.
Where no solidarity tax would be due, the difference equals the whole wealth tax, so the relief covers all of it. This means that where solidarity tax would be due, wealth tax of about the same amount remains payable, so the charge moves from one tax to the other. Whether the relief reaches a non-resident who opts for either region is not settled.
The solidarity tax
The solidarity tax applies to the same taxpayers as the wealth tax, non-residents included, and cannot be ceded to the regions. Since a 2023 amendment, its EUR 700,000 minimum applies to non-residents too.
The statute taxes net wealth above EUR 3 million, but its scale charges 0% on the first EUR 3,000,000 of the base left after the EUR 700,000 minimum, then 1.7%, 2.1% and 3.5%. This means the tax is positive only above EUR 3.7 million of net wealth. Wealth tax actually paid is deducted from it.
A decree-law of December 2023 extended the tax until wealth taxation is revised in the reform of regional financing. No official text read ends it for 2026.
The tax agency now applies the 60% cap to non-residents
The wealth tax law caps wealth tax plus Spanish income tax at 60% of the income tax bases, with at least 20% of the wealth tax always payable. The tax agency’s manual reports that in judgments of 29 October and 3 November 2025 the Supreme Court held that denying this cap to non-residents is discriminatory.
The agency applies the cap to non-residents from the 2025 return. According to the preamble of Order HAC/652/2026, the central tax tribunal extended the solidarity tax cap to them as well.
The official texts read apply the cap to non-residents without distinguishing by country of residence, but the judgments themselves were not read. The cap is measured against Spanish personal income tax bases; how it is computed for an owner who files no such return was not established.
Filing, representatives and the mortgage
Wealth tax returns for 2025 were due between 8 April and 30 June 2026 under Order HAC/277/2026, and solidarity tax returns, where tax was payable, between 1 and 31 July 2026 under Order HFP/587/2023; both windows have closed.
A wealth tax return is due where tax is payable or where the value of the assets, before debts, exceeds EUR 2 million; the rule covers non-residents. Property is valued at the highest of the cadastral value, the value set for other taxes and the purchase price.
A Spain-resident representative is mandatory for the wealth tax only with a permanent establishment or when the tax agency requires one. Under the solidarity tax, a taxpayer not resident in another EU member state must appoint one before the end of the filing period; whether the duty applies when no solidarity tax is payable was not established.
From a non-resident’s base, only charges on the Spanish assets and debts for capital invested in them are deductible. A mortgage on the Spanish home that was not used to buy or invest in it does not reduce the base.
What this article has not established
Which regional minimum, scale and relief a non-resident who opts actually obtains was not settled, and no administrative ruling on the point was searched. The cap’s arithmetic for an owner who files no Spanish personal income tax return was not established. Nor was it established whether the judgments limit the doctrine to residents of EU or EEA states.
The other regions were not read; the tax agency’s 2025 manual lists a differential relief of the same kind for Murcia and La Rioja. Regional changes after each consolidation date, and the filing windows for the 2026 tax year, were not read.
How Vietnam taxes the same owner, and whether a tax treaty changes either Spanish tax, is outside this article. The annual taxes on keeping a home in Spain are covered separately.
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