Wealth Tax & Large Fortunes Calculator

The Impuesto sobre el Patrimonio (IP) is a state tax delegated to the autonomous communities that levies the net worth of individuals tax-resident in Spain as of 31 December. The general exemption threshold is €700,000 (plus €300,000 for the primary residence). The state scale ranges from 0.2% to 2.5% for wealth exceeding €10.7 million.

The Impuesto de Solidaridad de las Grandes Fortunas (ISGF), in force since 2023, is a complementary state tax on net wealth exceeding €3 million. Its purpose is to correct the tax disparities between regions with and without a Wealth Tax bonus. The rates are: 1.7% from €3m to €3.47m, 2.1% from €3.47m to €5.35m, and 3.5% above €5.35m.

Interaction between IP and ISGF

The key is the double-taxation credit: the Wealth Tax (IP) paid is fully deducted from the ISGF liability. In practice, taxpayers who already pay IP (regions without a bonus) only pay ISGF to the extent it exceeds their IP. In Madrid, Andalusia, Galicia or Murcia — where IP is 100% bonused — the ISGF operates as the effective tax with no available deduction.

Regions with 100% Wealth Tax bonus

Madrid, Andalusia, Galicia, Murcia, the Canary Islands, La Rioja, the Balearic Islands and Extremadura have approved 100% bonuses on the IP, effectively eliminating Wealth Tax at the regional level. However, since there is no IP to deduct against the ISGF, wealth exceeding €3 million is taxed in full by the ISGF. The Constitutional Court upheld the ISGF in 2024.

Wealth planning for large fortunes requires a comprehensive analysis: choice of tax residence, structuring through holding companies, planned donations and life insurance can significantly reduce exposure to these taxes. At BMC we specialise in high-net-worth taxation.