Enter your assets and net wealth
📊 Tax Calculation Breakdown
The Solidarity Tax on Large Fortunes (known in Spanish as Impuesto Temporal de Solidaridad de las Grandes Fortunas - ITSGF) was introduced by Law 38/2022 of December 27. It operates as a direct, personal state tax that complements the regional Wealth Tax (Impuesto sobre el Patrimonio). The tax primarily targets high-net-worth individuals whose net wealth exceeds €3,000,000. Its key purpose is to establish a minimum tax contribution on wealth across all Spanish regions, particularly neutralizing regional 100% tax credits offered in regions like Madrid, Andalusia, Balearic Islands, Cantabria, and Murcia.
🔍 Taxable Event and Tax-free Minimums
The tax triggers when a resident or non-resident individual’s net assets (minus liabilities) exceed €3,000,000 on December 31st. It inherits the core exemptions of the Wealth Tax Act:
- Primary Residence Deduction: Up to €300,000 of the value of the taxpayer’s primary residence is exempt from taxation.
- General Allowance: Residents receive a state tax-free minimum of €700,000 on their taxable base.
- Double Taxation Avoidance: The amount paid for regional Wealth Tax (if any) is 100% deductible from the final Solidarity Tax liability.
📊 Progressive State Tax Scale
The tax rate is applied to the net taxable base (after deducting the primary residence and the €700,000 allowance) using the following progressive brackets:
| Taxable Base (Bracket) | Tax Rate |
|---|---|
| Up to €3,000,000 | 0.00% (Exempt in this bracket) |
| Between €3,000,000 and €5,347,998.03 | 1.70% |
| Between €5,347,998.03 and €10,695,996.06 | 2.10% |
| Over €10,695,996.06 | 3.50% |
📝 Worked examples
Example 1: Net wealth of €5,000,000 in Madrid (100% regional Wealth Tax credit)
Profile: Antonio resides in Madrid and owns assets worth €5,000,000 (including a primary residence valued at €400,000). Due to Madrid’s 100% regional Wealth Tax credit, he pays €0 in regional wealth tax.
- Primary residence deduction: –€300,000
- Net taxable wealth: €4,700,000
- General state allowance: –€700,000
- Taxable base: €4,000,000
- Solidarity Tax quota (first 3M at 0%, remaining 1M at 1.7%): €17,000.00
- Regional Wealth Tax deduction: –€0.00
Example 2: Same assets in Catalonia (General Wealth Tax applies)
Profile: Carmen has the same assets worth €5,000,000 in Barcelona and has paid the regional Catalan Wealth Tax.
- Primary residence deduction: –€300,000
- Net taxable wealth: €4,700,000
- Catalan regional allowance (€500k): Taxable base €4,200,000
- Catalan Wealth Tax paid: €41,800.00 (approx)
- Solidarity Tax state quota: €17,000.00
- Deduction for Wealth Tax paid: –€41,800.00
Carmen does not pay anything for the Solidarity Tax because the Wealth Tax she already paid to Catalonia is fully deducted and cancels the state quota.
Example 3: Large wealth in Andalusia of €12,000,000 (100% regional credit)
Profile: Manuel owns net assets of €12,000,000 (after primary residence deduction) in Malaga.
- General state allowance: –€700,000
- Taxable base: €11,300,000
- ITSGF up to €3,000,000: €0
- ITSGF bracket €3M to €5.34M (at 1.7%): €39,915.97
- ITSGF bracket €5.34M to €10.69M (at 2.1%): €112,307.96
- ITSGF excess above €10.69M (at 3.5%): €21,140.14
- State quota: €173,364.07
- Regional Wealth Tax deduction: –€0.00
⚠️ Common mistakes
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Assuming the Solidarity Tax is separate from Wealth Tax: The Solidarity Tax acts as a safety-net state tax. Any amount paid for regional Wealth Tax is deducted euro-for-euro from the Solidarity Tax. You only pay the state if your regional tax is lower than the state quota.
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Failing to file when the tax payable is zero: If your net assets exceed €3,000,000, you are legally obliged to file Form 718 even if the final tax payable is €0 due to regional wealth tax deductions.
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Ignoring the joint tax limit (Escudo Fiscal): The Solidarity Tax incorporates the same “escudo fiscal” rules. The sum of your IRPF, Wealth Tax, and Solidarity Tax quotas cannot exceed 60% of your total IRPF taxable base. If it does, the Solidarity Tax can be reduced by up to 80%.
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Using arbitrary asset valuations: You must value all real estate, bank balances, shares, and other assets strictly in accordance with Spain’s Wealth Tax Act rules (e.g., using the highest value among cadastral value, acquisition cost, or municipal value), rather than arbitrary market estimates.
💼 Special Cases
Exempt Family Business Assets
Shares in family-owned companies can be exempt from both the Wealth Tax and the Solidarity Tax, provided that you hold at least a 5% individual stake (or 20% family stake), perform active managerial roles, and earn your main source of income from these duties.
Filing Deadlines and Form 718
Filing is conducted online via AEAT Form 718. The submission period generally runs between July 1st and July 31st of the year following the tax year (e.g., in July 2026, you declare and pay the tax corresponding to assets held on December 31, 2025).
❓ Frequently Asked Questions (FAQ)
Filing is compulsory for individuals whose net taxable assets (excluding the primary residence up to €300,000) are **above €3,000,000** as of December 31st.
The total tax paid for IRPF (income tax), Wealth Tax, and Solidarity Tax cannot exceed **60%** of the taxpayer's IRPF taxable income. If this threshold is breached, the Solidarity Tax quota is reduced, up to a maximum reduction of **80%**.
In most cases, no. Since the Wealth Tax rates in Catalonia are higher than the state Solidarity Tax rates, your regional payment will fully offset the state tax, resulting in €0 to pay on Form 718.
Your primary residence is exempt up to **€300,000** of its official value per owner. If a property is valued at €800,000 and co-owned by a married couple, each cónyuge gets a €300,000 exemption, meaning only €200,000 of the total value is taxable.
Although initially introduced as a temporary measure for two fiscal years, the state government extended the tax indefinitely as long as regional wealth tax credits remain in place, making it fully active for the **2026** tax year.
Yes. Non-residents are taxed under "obligación real" on assets situated or rights exercisable in Spain (such as Spanish properties or bank accounts) when the net value exceeds **€3,000,000**. Note that non-residents do not qualify for the €700,000 general allowance.
You can deduct personal mortgages, loans, and other financial liabilities that reduce your net worth, provided they were not used to acquire exempt assets (like family business shares).
Voluntary late filing (without prior notice) incurs automatic surcharges of **5%, 10%, or 15%** depending on the delay. If the tax agency initiates a formal audit, penalties range from **50% to 150%** of the unpaid tax.