Wealth Tax in Spain for Non-Residents

15.06.2025

Thinking about buying a house on the Costa Blanca but not a resident of Spain? Then you might need to deal with Spain’s Wealth Tax (Impuesto sobre el Patrimonio). Don’t worry: in this blog, we’ll clearly explain what it is, when it applies, and what you need to know as a non-resident before buying your dream home.

What is the Spanish Wealth Tax?

Wealth tax is an annual tax on your net assets in Spain. For non-residents, this means: the total value of your assets in Spain, such as:

Your (second) home on the Costa Blanca or Costa Cálida
A garage or parking space
Savings in a Spanish bank account
Shares or investments in Spanish companies

Note: You only pay wealth tax on your Spanish assets—not on what you own in your home country.

When do non-residents have to pay Wealth Tax?

You are liable for wealth tax if:

The value of your Spanish assets exceeds €700,000
This is the general exemption granted by the Spanish government
Some regions (like Valencia or Murcia) may have slightly different rules

Good to know: Most foreign property buyers stay under the threshold, so you may not owe any tax—but you might still be required to file a tax return.

How does it work on the Costa Blanca?

The Costa Blanca lies in the Valencia region. Here, for non-residents:

Exemption: €700,000 per person
Tax rate: Between 0.2% and 3.5%, depending on total wealth
Tax is calculated based on the value of your assets on December 31 each year

Example: If you buy a home for €850,000 as a non-resident and own no other assets in Spain, you will pay wealth tax on €150,000 (€850,000 minus the €700,000 exemption).

How is the value of your property determined?

The tax authorities will use the highest of the following three values:

The cadastral value (valor catastral)
The official government valuation
The purchase price

This prevents people from declaring artificially low values to reduce tax liability.

How and when do you file?

As a non-resident, you file a tax return using Form Modelo 714, every year between April and June, based on your assets on December 31 of the previous year.

You can file it yourself online via the Spanish Tax Agency, or get help from a gestor or tax advisor.

Should you worry about the Wealth Tax?

In most cases:

Many buyers of homes or apartments on the Costa Blanca fall below the exemption threshold
If you buy with a partner, you both receive the €700,000 exemption (total €1.4 million)
Most non-residents pay little or no wealth tax

But: if you exceed the exemption, you must file. Failing to do so may result in fines or interest later on.

MedVilla Tip: Get proper advice

At MedVilla Spain, we don’t just help you find and buy your home—we also help with:

Contacting a trusted tax advisor or gestor
Clear explanation of your fiscal situation as a non-resident
Smart advice on how to structure your purchase (e.g. under two names)
Updates on legal and tax changes in Spain

Enjoy your home, worry-free

Buying property on the Costa Blanca or Costa Cálida is a wonderful step. Yes, the Spanish paperwork can be complex—but with the right guidance, it's totally manageable.

Wealth tax doesn’t have to be a problem, as long as you're informed. Let us help you navigate it—and enjoy your Spanish dream home stress-free!