Spain's Wealth Tax and Solidarity Tax — Does Your Costa del Sol Property Trigger a Bill?

One of the most common questions we receive from UK buyers considering property on the Costa del Sol is: "Will I have to pay wealth tax?" The answer depends on the value of your Spanish assets, how you structure ownership, and the specific regional rules that apply in Andalusia. For many buyers in the mid-market (EUR 200,000 to EUR 600,000), the answer is no. For those purchasing higher-value properties — a villa in Marbella's Golden Mile, a penthouse in Puerto Banus, or a substantial portfolio of Spanish investments — the answer is yes, and the amounts can be significant.

This guide provides a comprehensive, up-to-date overview of Spain's Wealth Tax (Impuesto sobre el Patrimonio), the Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad de las Grandes Fortunas), and how they apply to non-resident UK property owners in 2026. We cover the exemptions, rates, regional variations, recent court rulings, and practical strategies for minimising your liability. For a broader view of all taxes and costs, see our costs and taxes guide, or for an overview of the recent property tax changes affecting non-EU buyers, read our analysis of the proposed property tax measures for non-EU buyers.

Wealth Tax (Impuesto sobre el Patrimonio): The Basics

Spain's Wealth Tax is an annual tax on the net value of a taxpayer's worldwide assets (for residents) or Spanish-situs assets (for non-residents). It was originally introduced in 1977, abolished in 2008, reintroduced as a "temporary" measure in 2011, and has remained in force ever since. Despite periodic political discussions about abolishing it, wealth tax remains a permanent feature of the Spanish tax landscape.

Who Pays?

Wealth Tax is payable by:

• Spanish tax residents: Taxed on their worldwide net assets exceeding the exemption threshold
• Non-residents (including UK property owners): Taxed only on their Spanish-situs assets — that is, assets located in or connected to Spain. This includes Spanish property, Spanish bank accounts, shares in Spanish companies, and other Spanish assets. It does not include your UK property, UK bank accounts, UK investments, or any other assets outside Spain

This is a critical point for UK buyers: as a non-resident, Spain can only tax you on your Spanish wealth. Your London flat, your ISA portfolio, and your savings account at Barclays are entirely outside the scope of Spanish Wealth Tax.

The EUR 700,000 Per-Person Exemption

Every taxpayer — whether resident or non-resident — is entitled to an exemption of EUR 700,000 on their net taxable wealth. This means that if your total Spanish assets (minus debts secured against those assets) are worth EUR 700,000 or less, you owe no Wealth Tax.

The key word here is "per person." If you and your partner own a Spanish property jointly (50/50), each of you is assessed separately on your own share. A property worth EUR 1,200,000 owned 50/50 means each partner has Spanish assets of EUR 600,000 — below the EUR 700,000 threshold — and neither partner owes any Wealth Tax.

For Spanish tax residents, there is an additional exemption of EUR 300,000 for the primary residence (vivienda habitual). Non-residents do not benefit from this additional exemption because, by definition, their Spanish property is not their primary residence (their primary residence is in the UK). This means non-residents effectively have a lower threshold before Wealth Tax begins to bite.

Net Value: Deducting Your Mortgage

Wealth Tax is assessed on the net value of your assets — meaning the gross value minus any debts directly secured against those assets. For property owners, this means you can deduct the outstanding balance of any Spanish mortgage secured against the property.

For example, if your property is valued at EUR 900,000 and you have an outstanding mortgage of EUR 350,000:

• Gross value: EUR 900,000
• Less mortgage: EUR 350,000
• Net value: EUR 550,000
• Less EUR 700,000 exemption: Result is below zero
• Wealth Tax: EUR 0

This makes Spanish mortgages a legitimate and effective wealth tax planning tool. Even if you can afford to buy outright, taking a mortgage reduces your net Spanish wealth and may bring you below the exemption threshold. Of course, you must weigh the interest cost of the mortgage against the tax saving — but for higher-value properties, the numbers often favour retaining some mortgage debt.

How Is the Property Valued?

For Wealth Tax purposes, Spanish property is valued at the highest of the following three values:

1. Cadastral value (valor catastral): The value assigned by the Catastro (the Spanish property cadastre), which is typically well below market value — often 30% to 60% of the actual market value
2. Acquisition value (valor de adquisicion): The price you paid for the property, plus documented improvements, as stated in the escritura publica
3. Reference value (valor de referencia): A market-comparable value published by the Catastro since January 2022. This is generally closer to — but often still below — the actual market value. The reference value is used primarily for Transfer Tax (ITP) purposes, but the tax authority also considers it for Wealth Tax

In practice, for most Costa del Sol properties purchased in the last few years, the acquisition value is the highest of the three and is therefore the one used for Wealth Tax. For properties purchased many years ago at lower prices, the reference value may now be higher and will be used instead.

Wealth Tax Rates: Progressive Scale

Wealth Tax is levied on a progressive scale. The state-level rates (which apply to non-residents, who cannot benefit from regional variations) are:

Taxable base (after EUR 700,000 exemption)	Tax rate
First EUR 167,129	0.2%
Next EUR 167,123	0.3%
Next EUR 334,252	0.5%
Next EUR 668,500	0.9%
Next EUR 668,500	1.3%
Next EUR 1,337,000	1.7%
Next EUR 1,337,000	2.1%
Above EUR 4,679,504	3.5% (since 2021)

For most non-resident UK property owners, only the first few bands are relevant. A net taxable wealth of EUR 300,000 above the exemption (i.e., total Spanish assets of EUR 1,000,000 with no mortgage) would be taxed as follows:

• First EUR 167,129 at 0.2% = EUR 334
• Remaining EUR 132,871 at 0.3% = EUR 399
• Total Wealth Tax: EUR 733 per year

Regional Variations: The Andalusia Position

Wealth Tax in Spain is partly devolved to the autonomous communities (regions), which have the power to modify rates, exemptions, and bonifications. This creates a patchwork of different rules across Spain. However, non-residents are generally taxed under the state-level rules, not the regional rules — because non-residents are not "resident" in any region.

That said, the regional rules matter for context and for anyone considering becoming Spanish tax resident:

Andalusia

Andalusia has had a turbulent relationship with Wealth Tax. Between 2011 and 2021, the Andalusian government (then led by the PP) applied a 100% bonification — effectively eliminating Wealth Tax for Andalusian residents. This made Andalusia (and therefore the Costa del Sol) an attractive location for wealthy residents compared to regions like Catalonia or Valencia that applied the full tax.

In 2022, the central government introduced the Solidarity Tax specifically to counteract regional bonifications like Andalusia's. Andalusia subsequently removed its 100% bonification and reintroduced Wealth Tax for residents from the 2023 tax year onwards. Andalusian residents now pay Wealth Tax at rates that broadly mirror the state-level scale, though with some regional adjustments.

For non-resident UK buyers, this regional history is relevant primarily as context. Your Wealth Tax is calculated under the state-level rules regardless of where in Spain your property is located. Whether you own in Marbella (Andalusia), Barcelona (Catalonia), or Ibiza (Balearic Islands), the same state-level rates and EUR 700,000 exemption apply.

Madrid

Madrid continues to apply a 100% bonification on Wealth Tax for its residents. This means Madrid residents pay zero Wealth Tax. However, the Solidarity Tax was specifically designed to ensure that even Madrid residents with assets above EUR 3 million pay something — the Solidarity Tax cannot be bonified at the regional level.

Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad de las Grandes Fortunas)

The Solidarity Tax was introduced by Spain's central government in December 2022 and first applied to the 2022 tax year. It was originally described as "temporary" (temporal), but has been extended and, as of 2026, remains in force with no confirmed end date. It was designed to ensure that individuals with very large asset holdings pay a minimum amount of wealth-based tax, regardless of any regional bonifications on the standard Wealth Tax.

Who Is Affected?

The Solidarity Tax applies to:

• Spanish tax residents: Taxed on worldwide net assets exceeding EUR 3,000,000
• Non-residents: Taxed on Spanish-situs assets exceeding EUR 3,000,000

For non-resident UK property owners, this means the Solidarity Tax only applies if your net Spanish assets exceed EUR 3 million. Given that the average property price on the Costa del Sol is well below this threshold, the Solidarity Tax affects only a small number of very high-net-worth UK buyers — typically those with multiple Spanish properties, substantial Spanish investment portfolios, or individual properties in the ultra-luxury segment.

Solidarity Tax Rates

The Solidarity Tax is levied on net assets exceeding EUR 3,000,000 at the following rates:

Taxable base (above EUR 3,000,000)	Tax rate
First EUR 1,696,000	1.7%
Next EUR 1,696,000	2.1%
Above EUR 6,392,000	3.5%

Interaction with Wealth Tax

The Solidarity Tax is designed as a "complementary" tax. Any Wealth Tax already paid is deducted from the Solidarity Tax liability. In other words, if you owe EUR 20,000 in Wealth Tax and EUR 25,000 in Solidarity Tax (before deduction), you pay EUR 20,000 in Wealth Tax and EUR 5,000 in Solidarity Tax — a total of EUR 25,000, not EUR 45,000. The Solidarity Tax is essentially a top-up that ensures you pay at least the Solidarity Tax rates on assets above EUR 3 million.

The October 2025 Supreme Court Ruling: The 60% Combined Tax Cap

In October 2025, Spain's Supreme Court (Tribunal Supremo) issued a landmark ruling that significantly affects non-resident property owners. The ruling extended the application of the combined tax cap — which limits the sum of income tax (IRPF) and Wealth Tax to 60% of the taxpayer's taxable income — to non-residents.

Background: The 60% Cap

Article 31 of the Wealth Tax Law (Ley 19/1991) establishes that the combined amount of income tax and Wealth Tax cannot exceed 60% of the taxpayer's taxable income (base imponible del IRPF). If the combined amount exceeds 60%, the Wealth Tax is reduced accordingly (though the reduction cannot exceed 80% of the Wealth Tax liability — meaning you always pay at least 20% of the calculated Wealth Tax).

This cap was originally designed for Spanish residents and applied through the income tax return (Modelo 100). Non-residents, who file under Modelo 210 (non-resident income tax), were historically excluded from this cap by the tax authority's interpretation.

The Supreme Court's Decision

The Supreme Court ruled that excluding non-residents from the 60% combined tax cap constituted discrimination and was inconsistent with the principle of equal treatment. The ruling means that non-residents are now entitled to apply the same cap: their combined non-resident income tax (the annual Modelo 210 for deemed rental income, rental income tax, or other Spanish income) and Wealth Tax cannot exceed 60% of their Spanish taxable income.

What This Means in Practice

For non-residents with high-value Spanish property but relatively low Spanish income (which describes most UK holiday home owners), this ruling can significantly reduce the Wealth Tax bill. Consider a UK owner with:

• A property worth EUR 1,500,000 (net of mortgage)
• Annual non-resident income tax (deemed rental income): approximately EUR 3,000
• Wealth Tax liability (before cap): approximately EUR 3,200
• Combined tax: EUR 6,200
• 60% of taxable income (deemed rental income of approximately EUR 12,500): EUR 7,500

In this case, the combined tax (EUR 6,200) does not exceed 60% of the taxable income (EUR 7,500), so the cap does not apply and the full Wealth Tax is payable. However, for owners with lower income relative to their wealth (which is common for non-residents who only have deemed rental income), the cap can provide meaningful relief.

Refund Claim Opportunities

The Supreme Court ruling has retrospective implications. Non-residents who paid Wealth Tax in previous years without the benefit of the 60% cap may be entitled to file claims for refund (rectificacion de autoliquidacion) for tax years that are not yet time-barred (generally the last four years). If you have been paying Wealth Tax as a non-resident since 2022 or earlier, consult your Spanish tax adviser about whether a refund claim is worthwhile in your specific circumstances.

Constitutional Court Challenge to the Solidarity Tax

The Solidarity Tax faces an ongoing constitutional challenge. Several autonomous communities (including Madrid and Andalusia) and various taxpayer groups have challenged the tax before the Tribunal Constitucional (Constitutional Court), arguing that it violates the constitutional principles of regional fiscal autonomy, legal certainty, and non-confiscatory taxation.

Key Arguments

• Regional fiscal autonomy: The Spanish Constitution grants autonomous communities the power to regulate certain taxes, including Wealth Tax. The Solidarity Tax was designed specifically to override regional bonifications (particularly Madrid's 100% bonification), which the challengers argue is an unconstitutional invasion of regional competences
• Legal certainty: The tax was introduced retroactively (announced in September 2022, applying from 1 January 2022), which the challengers argue violates the principle of legal certainty
• Non-confiscatory principle: The Spanish Constitution (Article 31.1) prohibits taxes that are "confiscatory" in nature. The challengers argue that combined wealth taxes at rates up to 3.5% (on top of income tax and other taxes) can effectively confiscate wealth over time

Expected Timeline and Impact

The Constitutional Court accepted the challenge for review and has been deliberating for some time. A decision is widely expected in 2026, though the exact timing is uncertain. The potential outcomes are:

1. The tax is declared unconstitutional and struck down: This would eliminate the Solidarity Tax entirely. Taxpayers who have paid it would likely be entitled to refunds. However, the central government could potentially introduce a replacement tax with a different legal basis
2. The tax is declared constitutional: The Solidarity Tax would continue in its current form. This would establish a precedent that the central government can override regional fiscal bonifications for wealth-based taxes
3. Partial ruling: The court could find the retroactive application unconstitutional (allowing refunds for 2022) while upholding the tax prospectively. Or it could modify specific elements of the tax without striking it down entirely

For UK property owners, the practical implication is that if you currently pay the Solidarity Tax (i.e., your net Spanish assets exceed EUR 3 million), you should ensure you preserve your right to claim a refund in case the tax is struck down. Your tax adviser can file the annual Solidarity Tax return while simultaneously filing a protective claim (recurso) against it.

Worked Examples at Three Price Points

Let us work through the Wealth Tax and Solidarity Tax implications at three common price points for Costa del Sol properties.

Example 1: EUR 500,000 Property (Single Owner, No Mortgage)

• Net Spanish assets: EUR 500,000
• EUR 700,000 exemption: Fully covers the asset value
• Wealth Tax: EUR 0
• Solidarity Tax: EUR 0 (well below EUR 3,000,000 threshold)
• Total annual wealth-based tax: EUR 0

At this price point, there is no wealth tax to worry about. The vast majority of UK buyers on the Costa del Sol fall into this category. Properties up to EUR 700,000 (for a single owner) or EUR 1,400,000 (for a couple owning 50/50) attract zero Wealth Tax.

Example 2: EUR 1,000,000 Property (Single Owner, No Mortgage)

• Net Spanish assets: EUR 1,000,000
• Less EUR 700,000 exemption: EUR 300,000 taxable
• Wealth Tax calculation:
  • First EUR 167,129 at 0.2% = EUR 334
  • Remaining EUR 132,871 at 0.3% = EUR 399
• Wealth Tax: EUR 733 per year
• Solidarity Tax: EUR 0 (below EUR 3,000,000 threshold)
• Total annual wealth-based tax: EUR 733

Now consider the same property owned 50/50 with a partner:

• Each partner's net Spanish assets: EUR 500,000
• Each partner's EUR 700,000 exemption: Fully covers the asset value
• Wealth Tax per partner: EUR 0
• Total annual wealth-based tax: EUR 0

By owning 50/50 with a partner, the couple saves EUR 733 per year. Over ten years, that is EUR 7,330 saved through a simple ownership structure decision.

Now consider the single owner with a EUR 400,000 mortgage:

• Net Spanish assets: EUR 1,000,000 - EUR 400,000 = EUR 600,000
• Less EUR 700,000 exemption: Result is below zero
• Wealth Tax: EUR 0

The mortgage eliminates the Wealth Tax entirely. If the mortgage interest rate is, say, 3.5% on EUR 400,000 (EUR 14,000 per year in interest), and the Wealth Tax saved is only EUR 733, the mortgage is not justified purely for tax purposes. But if the mortgage is already in place for other reasons (cash flow management, leveraging a higher return on invested capital elsewhere), the Wealth Tax elimination is an additional benefit.

Example 3: EUR 3,500,000 Property (Single Owner, EUR 500,000 Mortgage)

• Net Spanish assets: EUR 3,500,000 - EUR 500,000 = EUR 3,000,000
• Less EUR 700,000 exemption: EUR 2,300,000 taxable for Wealth Tax
• Wealth Tax calculation:
  • First EUR 167,129 at 0.2% = EUR 334
  • Next EUR 167,123 at 0.3% = EUR 501
  • Next EUR 334,252 at 0.5% = EUR 1,671
  • Next EUR 668,500 at 0.9% = EUR 6,017
  • Next EUR 668,500 at 1.3% = EUR 8,691
  • Remaining EUR 294,496 at 1.7% = EUR 5,006
• Wealth Tax: EUR 22,220 per year

Solidarity Tax calculation (net assets EUR 3,000,000 — right at the threshold):

• The Solidarity Tax exemption is EUR 3,000,000. With net assets of exactly EUR 3,000,000, the taxable base for Solidarity Tax is EUR 0
• Solidarity Tax: EUR 0

If the mortgage were only EUR 200,000 (net assets EUR 3,300,000):

• Solidarity Tax base: EUR 3,300,000 - EUR 3,000,000 = EUR 300,000
• EUR 300,000 at 1.7% = EUR 5,100
• Less Wealth Tax already paid on the same base: the deduction calculation is complex, but the net effect is an additional Solidarity Tax charge of approximately EUR 0 to EUR 2,000 depending on the overlap

At this level, proper tax planning with a qualified Spanish tax adviser (asesor fiscal) is essential. The interaction between Wealth Tax, Solidarity Tax, the 60% combined cap, and the mortgage deduction creates a complex optimisation problem that requires professional modelling.

How Joint Ownership Keeps You Below the Threshold

The EUR 700,000 per-person exemption is the single most powerful planning tool for most UK buyers. The mathematics are straightforward:

Property value	Single owner — Wealth Tax	50/50 couple — Wealth Tax (each)
EUR 500,000	EUR 0	EUR 0
EUR 700,000	EUR 0	EUR 0
EUR 900,000	EUR 400	EUR 0
EUR 1,000,000	EUR 733	EUR 0
EUR 1,200,000	EUR 1,333	EUR 0
EUR 1,400,000	EUR 2,133	EUR 0
EUR 1,600,000	EUR 3,133	EUR 200
EUR 2,000,000	EUR 5,733	EUR 733

For a couple buying a EUR 1,400,000 property, joint 50/50 ownership eliminates over EUR 2,000 per year in Wealth Tax compared to single ownership. Over a 15-year holding period, that is more than EUR 30,000 saved.

This principle applies to both married and unmarried couples. If you are buying with a partner, friend, or family member, the joint ownership structure should be discussed with your lawyer and tax adviser before the purchase. Keep in mind that the ownership split should reflect genuine economic reality — the Spanish tax authority can challenge artificial structures that exist solely for tax avoidance purposes.

Filing Requirements and Deadlines

Non-resident UK property owners who are liable for Wealth Tax must file Modelo 714 (Declaracion del Impuesto sobre el Patrimonio) annually. The filing deadline is the same as for income tax: generally 30 June of the year following the tax year (so the 2025 Wealth Tax return is due by 30 June 2026).

If you are also liable for the Solidarity Tax, you must file Modelo 718. The deadline is the same.

Important: there is no obligation to file if your net Spanish assets are below EUR 700,000 and you therefore owe no Wealth Tax. You only need to file if you have a liability to pay. However, some advisers recommend filing a "zero return" in certain circumstances to start the limitation clock (prescripcion) running — consult your asesor fiscal.

For UK property owners who are not Spanish tax resident, Wealth Tax and Solidarity Tax returns are typically handled by the same gestor or asesor fiscal who handles your annual non-resident income tax return (Modelo 210 for deemed rental income). The additional cost for the Wealth Tax filing is usually EUR 100 to EUR 300 per year.

Wealth Tax and Company Ownership Structures

Some property advisers suggest buying Spanish property through a company (typically a Spanish SL — Sociedad Limitada, or a UK limited company) to reduce or eliminate Wealth Tax. The theory is that you own shares in a company rather than owning the property directly, and the shares may be valued differently for Wealth Tax purposes.

We strongly advise caution with this approach. The Spanish tax authority (Agencia Tributaria) is well aware of these structures and has specific anti-avoidance rules:

• Look-through provisions: For companies whose primary asset is Spanish real estate, the tax authority can "look through" the corporate structure and assess Wealth Tax on the underlying property value
• Annual corporate tax obligations: A Spanish SL must file annual accounts, corporate tax returns (Impuesto sobre Sociedades), and comply with anti-money-laundering requirements. The administrative costs often exceed any Wealth Tax saving
• Non-resident company surcharge: Properties owned by companies resident in tax havens or non-cooperative jurisdictions are subject to an annual 3% tax on the cadastral value
• Exit tax complications: Disposing of a company-owned property can trigger capital gains at both the corporate and shareholder levels, creating a double tax charge

For the vast majority of UK buyers on the Costa del Sol, direct personal ownership is simpler, cheaper, and more tax-efficient than any corporate structure. Company ownership may have benefits in very specific circumstances (particularly for commercial property, large portfolios, or family estate planning), but these should be evaluated by a qualified tax professional on a case-by-case basis.

Practical Steps for UK Property Owners

Based on the information in this guide, here are the practical steps for UK buyers:

1. Before purchasing: Calculate your expected net Spanish asset position (property value minus mortgage) and determine whether it will exceed EUR 700,000 per person. If yes, factor the annual Wealth Tax into your total cost of ownership. Use our property cost calculator to estimate all annual costs
2. Structure ownership correctly: If buying with a partner, consider 50/50 ownership to maximise the benefit of two EUR 700,000 exemptions. Discuss this with your lawyer before signing
3. Consider mortgage strategy: If your net Spanish assets are above or near the EUR 700,000 threshold, a Spanish mortgage can reduce your net wealth for tax purposes. This should be weighed against the interest cost and your overall financial position
4. Appoint a Spanish tax adviser: If your property value is above EUR 700,000 (single) or EUR 1,400,000 (couple), engage a qualified asesor fiscal who specialises in non-resident taxation. The cost (EUR 200-500 per year for annual filings) is minimal compared to the potential tax at stake
5. File on time: If you owe Wealth Tax, ensure Modelo 714 is filed by 30 June each year. Late filing attracts surcharges of 1% per month (up to 12 months) plus interest, and potentially penalties of 50% to 150% of the unpaid tax for deliberate non-compliance
6. Monitor the Solidarity Tax constitutional challenge: If you pay or may be liable for Solidarity Tax, keep your adviser informed so they can file protective claims if the tax is struck down
7. Review annually: Property values change, mortgage balances decrease, and tax rules evolve. Review your position each year with your adviser to ensure you are not paying more than necessary

Frequently Asked Questions

I own a EUR 400,000 apartment on the Costa del Sol. Do I need to worry about Wealth Tax?

No. Your net Spanish assets (EUR 400,000, or less if you have a mortgage) are well below the EUR 700,000 exemption. You owe no Wealth Tax and do not need to file Modelo 714. This applies whether you own alone or jointly.

My property has increased in value since I bought it. Is Wealth Tax based on the current market value or the purchase price?

Wealth Tax is based on the highest of the cadastral value, the acquisition value, or the reference value. If none of these has been updated to reflect current market conditions, you may be assessed on a value below the current market value. However, the reference value (valor de referencia) introduced in 2022 is updated periodically and tends to track market movements, so the gap between the assessed value and the actual market value is narrowing over time.

Does the UK have a wealth tax equivalent? Will I be taxed twice on the same assets?

The UK does not have a wealth tax. There is no UK equivalent of Impuesto sobre el Patrimonio. Therefore, there is no risk of double taxation on your Spanish wealth — the Spanish Wealth Tax is the only annual wealth-based tax you will face on your Spanish property. (Note: the UK does have Council Tax and other property-related charges, but these are not "wealth taxes" and do not interact with Spanish Wealth Tax.)

I am considering buying two properties on the Costa del Sol totalling EUR 1,200,000. Does the EUR 700,000 exemption apply separately to each property?

No. The EUR 700,000 exemption applies to your total net Spanish wealth, not per property. If you own two properties worth a combined EUR 1,200,000 with no mortgage, your taxable wealth is EUR 1,200,000 minus EUR 700,000 = EUR 500,000. If you own them 50/50 with a partner, each partner's share is EUR 600,000 — below the EUR 700,000 exemption — and neither pays Wealth Tax.

Summary

Spain's Wealth Tax and Solidarity Tax create annual obligations for property owners whose net Spanish assets exceed certain thresholds. For the majority of UK buyers on the Costa del Sol — those purchasing properties up to EUR 700,000 (single) or EUR 1,400,000 (couple, 50/50) — the Wealth Tax liability is zero. For higher-value purchases, the tax is modest at lower levels (under EUR 1,000 per year on a EUR 1 million property) but increases progressively and can become substantial for properties above EUR 2 million.

The key planning tools are straightforward: joint ownership to maximise per-person exemptions, mortgage financing to reduce net taxable wealth, and professional tax advice to ensure correct filing and to take advantage of the 60% combined tax cap established by the October 2025 Supreme Court ruling.

For most UK buyers, Wealth Tax should be a consideration but not a deterrent. The annual cost is typically a small fraction of the property's value and is more than offset by the lifestyle, rental income potential, and long-term capital appreciation that Costa del Sol property offers.

For more detailed information about all taxes and costs associated with buying and owning property in Spain, visit our costs and taxes guide. For a general overview of the buying process, see our UK buyers' page. And to explore Spanish legal and property terminology, consult our glossary.