RealtorList
Contact Add my profile
Imagen editorial sobre Impuesto de Solidaridad y propiedades inmobiliarias en España

Solidarity Tax and real estate properties in España

ITSGF · Real estate assets

A high-value property does not by itself trigger the Solidarity Tax: total net wealth and tax residence are what matter.

The Temporary Solidarity Tax on Large Fortunes (ITSGF) is a state tax that supplements Wealth Tax. It applies to individuals with net wealth exceeding 3.000.000 € and largely uses the same exemption, valuation and wealth determination rules.

Last reviewed: 8 August 2026 Jurisdiction: España Taxpayers: individuals Form: 718
See the short answer View tax bands and calculation

Short answer

The property is one component of wealth; the tax is calculated on the taxpayer’s net wealth position.

Law 38/2022 establishes the ITSGF as a state, direct, personal tax that supplements Wealth Tax. The taxable event arises when an individual holds, as of 31 December, net wealth exceeding 3.000.000 €. Exceeding this threshold does not automatically mean that a final amount is payable.

3 M€

Taxable event threshold

The law taxes net wealth exceeding 3.000.000 €.

It is not a value threshold for a single property.
700k

State tax-free allowance

The taxable base is reduced by 700.000 € before applying the ITSGF's own tax scale.

The calculation must follow the statutory order.
0%

First bracket of the taxable base

The first 3.000.000 € of the taxable base is taxed at 0%.

Positive marginal rates then apply.
An essential distinction

“Net wealth exceeding 3.000.000 €” defines the taxable event. The tax due is calculated after applying exemptions, valuation rules, deductible debts, the exempt allowance, the tax scale, applicable limits and deductions.

Personal scope

The first step is to determine whether there is unlimited or limited tax liability.

The ITSGF refers to taxpayers subject to Wealth Tax. Therefore, tax residence decisively changes which assets and rights are included in the calculation.

R

Tax resident in España

As a general rule, they are subject to unlimited tax liability: their entire net wealth is taken into account, regardless of where the assets are located or the rights may be exercised, without prejudice to treaties and specific rules.

NR

Non-tax resident

As a general rule, they are subject to limited tax liability: the tax is levied on assets and rights located, exercisable or enforceable in España, subject to the rules and limits applicable to that liability.

País Vasco and Navarre require separate verification

Law 38/2022 provides for the application of the tax throughout Spain, without prejudice to the regional tax regimes of País Vasco and Navarre. The general regime should not be automatically applied to a specific regional tax situation.

Real estate assets

A home, several properties or company shareholdings may form part of the calculation.

The tax is not limited to real estate, but real estate assets may represent a significant part of the tax base. To understand the tax exposure, ownership, tax value, debts, exemptions and residence must be reviewed.

01

Main residence

Wealth Tax exemptions also apply to the ITSGF. The main residence may be exempt up to 300.000 € when the legal requirements are met.

02

Second residence

A second home or holiday property does not automatically become a main residence merely because it is used by the owner.

03

Let properties

The existence of a rental does not in itself remove the property from the estate. Estate tax rules and, separately, income tax treatment must be reviewed.

04

Companies holding property

For non-residents, certain unlisted shareholdings may be considered located in España when at least 50% of the assets consist, directly or indirectly, of Spanish real estate.

Tax value of the property

The ITSGF uses the valuation rules of Wealth Tax.

For urban or rural properties, the general rule under Article 10 of the Wealth Tax Act takes the highest of three values. This may mean that the relevant value differs from the price the owner considers to be “market value”.

A

Cadastral value

It is compared with the other values provided for by law.

B

Value determined or verified

The value determined or verified by the tax authorities for the purposes of other taxes is taken into account. The AEAT explains that the reference value may fall under this rule for certain properties acquired from 2022.

C

Purchase price or acquisition value

The purchase price, consideration or acquisition value is also compared.

Property value for Wealth Tax purposes = highest of cadastral value / value determined or verified by the tax authorities / purchase price or acquisition value General rule for urban and rural properties. There are specific rules for construction, timeshare ownership and other circumstances.
Catastro reference value

The AEAT states that the reference value may be included in the Wealth Tax valuation where it has served as the taxable base in the tax charged on an acquisition made from 1 January 2022. For this reason, “cadastral value” should not be confused with “reference value”.

Debts and net wealth

A mortgage may be relevant, but it is not deducted automatically without reviewing the actual debt and its connection to the asset.

Net wealth is calculated by deducting legally deductible and substantiated charges, encumbrances and debts. For taxpayers subject to tax on a real obligation basis, the deduction is limited to charges and debts related to assets and rights located in España.

1

Outstanding debt

The debt is valued at its nominal amount on the tax accrual date and must be properly substantiated.

2

Mortgage ≠ automatic debt deduction

The mortgage security and the debt are distinct concepts. What matters is the deductible financial liability under the law.

3

Non-resident

For real obligations, debts arising from capital invested in the assets subject to tax in España must be reviewed carefully.

Threshold, allowance and rates

The scale is progressive and applies to the taxable base, not directly to the value of the property.

After determining the tax base and applying the state tax-free allowance of 700.000 €, the taxable base is taxed according to the ITSGF scale. The first band up to 3.000.000 € is taxed at 0%.

Taxable base from Remainder of the band Marginal rate Practical interpretation
0 € Up to 3.000.000 € 0% First band of the taxable base.
3.000.000 € Up to an additional 2.347.998,03 € 1,7% Up to a cumulative taxable base of 5.347.998,03 €.
5.347.998,03 € Up to an additional 5.347.998,03 € 2,1% Up to a cumulative taxable base of 10.695.996,06 €.
10.695.996,06 € Thereafter 3,5% Highest marginal rate under the current state scale.
Do not treat 3.000.000 € as a “property allowance”

The 3.000.000 € threshold refers to the net wealth that gives rise to the taxable event. There is then a tax-free allowance of 700.000 € and a scale whose first taxable-base band, up to 3.000.000 €, is taxed at 0%. In addition, deductions and limits may still apply.

Simplified example

A property worth 4,5 M€ does not necessarily mean that tax is calculated on 4,5 M€.

Illustrative example

  • Assets subject to tax after applying the valuation rules: 4.500.000 €.
  • Properly substantiated deductible debts: 400.000 €.
  • Simplified tax base: 4.100.000 €.
  • ITSGF tax-free allowance: 700.000 €.
  • Simplified taxable base: 3.400.000 €.

Simplified gross tax liability

The first 3.000.000 € of the taxable base are taxed at 0%. In this simple example, the next 400.000 € would fall within the 1,7% band.

400.000 € × 1,7% = 6.800 € Illustrative gross tax liability before applying the Wealth Tax deduction, other deductions and, where applicable, tax liability limits.
This example is not a tax assessment

An actual tax return may include other assets, exemptions, shared ownership, business assets, debts subject to specific rules, international treaties, Wealth Tax paid and tax liability limits.

Relationship with Wealth Tax

They are separate taxes, but ITSGF is designed to operate in a complementary manner.

Law 38/2022 itself allows the Wealth Tax liability for the same tax year that has actually been paid to be deducted from the ITSGF liability. Therefore, the regional Wealth Tax position may affect the overall financial outcome, even though ITSGF is a state tax and is not devolved to Spain's autonomous communities.

IP

Wealth

It may incorporate regional regulations for certain taxpayers and has its own tax return and rules.

+

ITSGF

It is a state-level, complementary tax that cannot be devolved to Spain's autonomous communities under the common regime.

−

Deduction

The Wealth Tax liability actually paid may be deducted from the ITSGF liability.

See Wealth Tax and property

Non-resident property owners

For a non-resident, the key question is which assets are deemed to be located in España.

Limited tax liability focuses on assets and rights located, exercisable or enforceable in España. A Spanish home clearly falls within this analysis, but corporate structures may also require review.

ES

Direct property

A home, villa, plot or property located in España may form part of the assets subject to limited tax liability.

50%

Indirect real-estate holding

The Wealth Tax Law considers certain unlisted shareholdings to be located in España where at least 50% of the entity's assets consist, directly or indirectly, of Spanish real estate.

REP

Tax representative

ITSGF includes a specific obligation to appoint a representative in España for certain non-resident taxpayers outside the EU, subject to the exception provided for EEA states where the mutual assistance required by the law exists.

International treaties

The law itself preserves the application of international treaties and conventions incorporated into Spanish law. For cross-border assets, the final tax treatment should not be assumed solely on the basis of the property's physical location.

Form 718 · Current procedure

The return is filed electronically, and the obligation to file depends on whether there is tax payable.

The AEAT states that taxpayers subject to the ITSGF must file Form 718 when, after applying the relevant deductions or reliefs, there is tax payable.

31/12

Tax due date

The tax accrues on 31 December and is based on the net wealth owned by the individual on that date.

718

Official form

The self-assessment is completed using Form 718, and filing is mandatory electronically.

JUL

General deadline

The statutory deadline falls between 1 and 31 July of the year following the accrual date.

Procedural update 2026

Order HAC/652/2026 amended Form 718 and applies for the first time to the return for tax year 2025, whose filing period began on 1 July 2026. For that filing campaign, the AEAT set the deadline for filing as 31 July and, in the case of direct debit payment, as 28 July. Deadlines must be checked for each annual filing campaign.

The name “Temporary” can be misleading

Although it was initially introduced for a limited period, its application was extended by Royal Decree-Law 8/2023 until wealth taxation is reviewed as part of the reform of the regional financing system. As of the date of this review, the tax remains in force.

Common mistakes

The most common mistakes arise from confusing wealth, ownership and the obligation to file.

!

Looking only at the purchase price

The property's tax value may not match either the price paid or a current market valuation.

!

Ignoring other assets

For residents subject to personal tax liability, the calculation is not limited to Spanish properties.

!

Deducting the entire mortgage without checking

Deductible debt must comply with legal rules, be substantiated and, under real tax liability, have the required connection to Spanish assets.

!

Confusing Wealth Tax with the Solidarity Tax

They are different taxes. The specific Wealth Tax article should address tax reliefs, the regional tax scale and other particular features of that tax.

!

Believing that “Temporary” means repealed

Its application remains extended, and the AEAT keeps Form 718 active for the 2025 filing campaign, submitted in 2026.

!

Applying the general regime to regional charter territories

País Vasco and Navarre require checking their regional charter framework before applying a practical conclusion.

Official sources

Legal and procedural basis used for this guide

The figures, valuation rules and obligations described are based on consolidated national legislation and the current procedural information from the Tax Agency.

BOE · Primary source Law 38/2022 — Article 3, ITSGF Nature, taxable event, tax-free allowance, scale, taxpayers, exemptions, deductions, tax accrual and relationship with Wealth Tax. BOE · Wealth Tax Law Law 19/1991 on Wealth Tax Rules for valuing real estate, personal/real liability, exemptions, debts and net wealth. BOE · Extension Royal Decree-Law 8/2023 Extension of the ITSGF until the review of wealth taxation linked to the regional financing reform. AEAT · Procedure Form 718 — Temporary Solidarity Tax on Large Fortunes Access to filing, enquiries, simulator, documentation and instructions for the current tax campaign. AEAT · Filing obligation Who must file the ITSGF The AEAT links the filing requirement to a tax liability payable after deductions or tax credits. AEAT · Deadline ITSGF filing deadline General filing window between 1 and 31 July of the year following tax accrual, and direct-debit payment rules. AEAT · Real-estate valuation Real estate — Wealth Tax 2025 Official explanation of the higher value under the legal criteria and the role of the reference value from 2022. AEAT · Update 2026 Amendment of Form 718 by Order HAC/652/2026 New version of the form applicable for the first time to the tax return for the 2025 tax year, filed in 2026.

Related guides

Continue with the relevant tax or situation, without mixing tax purposes.

Wealth Tax and properties in España Scope, residence, regional regulations and relationship with real estate. Annual taxes and costs of owning a home in España Overview of IBI, community fees, insurance and recurring tax obligations. IRNR for property owned by non-residents Imputed income and rental income for non-resident individuals who own Spanish properties. Taxes when buying a home in España ITP, IVA, AJD and guidance by property type and autonomous community. Buying a property in España as a foreign buyer or non-resident Documentation, taxation, financing and practical considerations for international buyers. Real estate guide to España A general guide to buying, selling, financing, owning and investing in property.

Frequently asked questions

Solidarity Tax and real estate properties in España

Not necessarily. The legal threshold refers to an individual's net wealth, not the standalone price of a property. The valuation rules, exemptions, deductible debts, tax-free allowance, tax scale, deductions and limits must then be applied.

Law 38/2022 establishes a reduction of 700.000 € from the taxable base as a tax-free allowance. The resulting taxable base is then subject to the tax scale, with the first band up to 3.000.000 € taxed at 0%.

As a general rule, urban and rural properties follow the Wealth Tax rules and are valued at the higher of the cadastral value, the value determined or assessed by the Administration for other tax purposes, and the purchase price, consideration or acquisition value.

A debt may be deductible where it meets the legal requirements and is properly substantiated. The original amount of a mortgage should not be deducted automatically. For non-residents with real tax liability, deductible debts must also be linked to the assets and rights subject to tax in España.

Yes. Taxpayers subject to Wealth Tax through real tax liability may also be subject to ITSGF. For a non-resident, the analysis generally covers assets located, exercisable or enforceable in España, as well as applicable international treaties.

ITSGF is designed to complement the Wealth Tax. The law allows the Wealth Tax liability for the same tax year that has actually been paid to be deducted from the ITSGF liability, along with other applicable deductions and limits.

Yes. Although introduced as a temporary tax, Royal Decree-Law 8/2023 extended its application until wealth taxation is reviewed in the context of reforming the autonomous community financing system. The AEAT keeps Form 718 active in 2026.

Under the current general rule, filing takes place between 1 and 31 July of the year following the tax accrual date of 31 December. Direct debit payment may have an earlier deadline, so the relevant filing campaign should be checked.

No. The AEAT states that taxpayers must file a return when the ITSGF tax liability, after applying the relevant deductions or allowances, is payable. A distinction must be made between being subject to the tax and having an actual obligation to file Form 718.

Important notice This guide provides general information on the national framework of the Temporary Solidarity Tax on Large Fortunes and its relationship with real estate properties. It does not replace personalised tax advice. Taxation may depend on tax residence, international treaties, regional tax regimes, asset composition, ownership, debts, exemptions, regional Wealth Tax regulations and subsequent legislative changes. Before filing a return or structuring an asset transaction, it is advisable to obtain professional tax advice tailored to the specific case.

Actualidad inmobiliaria

Últimas publicaciones

Información práctica para agentes, agencias, compradores, vendedores e inversores del mercado inmobiliario español.