The Spanish Fortunes Tax applies to individuals with net assets above €3 million and works alongside regional wealth tax rules. This guide explains how the tax works, who may be liable, how it interacts with Spain’s existing wealth tax and what high-net-worth individuals planning a move to Spain should consider when preparing their finances and reporting obligations.
Spain applies a specific tax on individuals with significant wealth called the Fortunes Tax (Impuesto Temporal de Solidaridad de las Grandes Fortunas). It is sometimes referred to as the Spanish solidarity tax or high-net-worth solidarity tax.
If you hold global assets with a total net value above €3 million, this tax may apply to you once you become Spanish tax resident. It sits alongside Spain’s standard wealth tax and has been confirmed by Spain’s Constitutional Court, meaning it continues to be extended each year.
This guide explains how the Fortunes Tax works, who it affects and what it means if you are planning to relocate to Spain and have net assets worth over €3m.
The information in this article provides general guidance only and is not personalised tax advice. Tax rules can change and may vary depending on individual circumstances. Always seek advice from a qualified Spanish tax adviser before making financial decisions.
The Fortunes Tax is an additional tax that applies to individuals whose net assets exceed €3 million. It was introduced in 2022 as a temporary measure but has since been upheld by the Constitutional Court and is now extended annually by the Spanish Government.
It is designed to ensure that high-net-worth individuals contribute proportionately to Spanish public finances and to balance differences between regional wealth tax rules.
The tax applies at a national level and operates alongside regional wealth taxes, with credits available to avoid double taxation.
You may be subject to the Fortunes Tax if:
Assets considered include worldwide assets, not only those held in Spain, if you are a Spanish resident for tax purposes.
For non-residents, the tax may apply to assets located in Spain, although in practice the primary impact is on residents with global wealth above the threshold.
The main threshold begins at €3 million net assets.
For Spanish tax residents, the first €700,000 of net wealth is generally exempt and the main residence in Spain may qualify for an additional exemption, subject to limits.
After exemptions, the tax applies in progressive bands above €3 million.
Specific rates vary and should be confirmed with a tax specialist, as regional credits and personal circumstances may affect the calculation.
Spain also levies a standard Wealth Tax, which operates regionally.
Some regions offer significant reductions or full relief. However, if regional wealth tax relief means little or no tax is due, the Fortunes Tax can still apply at the national level.
To prevent being taxed twice, any wealth tax paid at a regional level is typically credited against the Fortunes Tax liability.
The Fortunes Tax is reported annually using Form D-718.
Taxpayers must disclose their net global assets and supporting valuations. This may include real estate, bank accounts, investment portfolios, pensions, company shares, life assurance and other assets.
Filing deadlines coincide with annual income tax filing, although precise dates may vary each year. Accurate valuations and documentation are essential.
If you are planning to move to Spain and have significant assets, early planning is crucial.
Key considerations include:
The Spanish tax system for wealth and international assets is complex. Delaying planning until after arrival can reduce flexibility and increase tax exposure.
Consider discussing the following with a specialist:
The Fortunes Tax is a national tax on individuals with net assets above €3 million. It applies to worldwide assets for Spanish residents and is filed using Form D-718.
Although introduced as a temporary measure in 2022, the Constitutional Court confirmed its legality and it is now extended annually by the Spanish Government.
It may apply to assets located in Spain, but the primary impact is on residents with global assets above €3 million.
Yes. Regional wealth tax paid is typically credited against the Fortunes Tax to avoid double taxation.
It is declared through Form D-718 as part of annual tax filing. Accurate valuations and reporting are required and it can be risky to do it without specialist support.
If you are moving to Spain or already living there and may exceed the €3 million threshold, personalised advice is essential.
We can introduce you to a fully-qualified Spanish tax expert who will be able to:
Through Experts for Expats unique introduction service, you can book either a Free Discovery Call or a Formal Tax Consultation lasting either 30, 45 or 60 minutes directly with our partner.
Our introduction services are designed to save time, avoid mistakes and get reassurance that your Spanish tax position is accurate and compliant, ensuring nothing is left to chance.
