Property tax in Spain for property owners
In 30 seconds
For almost every buyer, Spanish wealth tax costs nothing. Andalusia gives a 100 % bonification on it, and the national solidarity tax that can take its place only starts above 3.000.000 € of net wealth.
Why does a 100 % regional discount not simply mean zero tax?
Spain runs two separate wealth taxes at the same time. The Impuesto sobre el Patrimonio (IP) is the ordinary wealth tax. Each autonomous community can grant its own bonification against it: Andalusia’s is 100 %, the same figure our homepage already states. On top of this sits the Impuesto Temporal de Solidaridad de las Grandes Fortunas (ITSGF), a national solidarity tax. It was created specifically to stop a regional bonification like Andalusia’s from removing tax completely for the wealthiest owners.The way the two taxes interact is automatic, not a matter of choice: a taxpayer gets credit, against the ITSGF, for whatever regional wealth tax they really PAID. Where Andalusia’s bonification means nothing was paid, there is nothing to credit, and the ITSGF is owed in full on the part of net wealth it reaches. Below the ITSGF’s own threshold, this makes no difference in practice: nothing is owed under either tax.
| Impuesto sobre el PatrimonioIP, the regional wealth tax | ITSGFThe national solidarity tax | |
|---|---|---|
| Who levies it | The autonomous community. | The Spanish state. |
| What the relief is | Andalusia: 100 % bonification. | None, by design. |
| What is left after it | Nothing, once the bonification applies. | The tax above 3.000.000 € of net wealth. |
What the 100 % bonification suggestsWhat really happens
- Andalusia abolished wealth tax for its residents
- Andalusia abolished the REGIONAL wealth tax bill. The separate national solidarity tax was designed on purpose so that this removal does not apply to it too, above the solidarity tax’s own threshold.
- A wealthy owner in Andalusia pays less wealth tax than in a region with no bonification
- Above the solidarity tax threshold, they usually pay roughly the same total, just to the state instead of the region. The mechanism changes where the money goes, not whether it is owed at all.
Does an ordinary apartment owner need to plan around this?
Almost never. It is worth being specific about why, instead of giving vague reassurance. A non-resident is taxed only on assets located in Spain. For most buyers on this coast, this means the property itself, valued at whichever is higher: purchase price, cadastral value, or the valor de referencia, plus any other Spanish assets you hold. Below the 700.000 € general exempt minimum, nothing is owed, whatever your residency or region.A resident gets a second exemption as well: up to 300.000 € of the value of their own main home is excluded before the 700.000 € general minimum is even applied. A non-resident buying a second home does not get this exemption. In practice, this means a resident’s own home is protected twice, while a non-resident’s holiday apartment only gets the general minimum.
0 €3.500.000 €
- General exempt minimum700.000 €
- An ordinary apartment usually sits here
- Solidarity-tax threshold (ITSGF)
- 3.000.000 € of net wealth.
| Your situation | Threshold | What applies |
|---|---|---|
| A single apartment worth under 700.000 € | 700.000 € general exempt minimum | This is below the minimum on its own. There is no wealth tax exposure from the property, resident or not, even before Andalusia’s bonification is considered. |
| A single apartment above 700.000 €, or several Spanish properties combined | 100 % Andalusian bonification | In principle, this brings you into IP territory. This is exactly where the bonification works: the regional bill comes to zero, for both residents and non-residents who choose the Andalusian regime. |
| Net wealth, in Spain and worldwide for a resident, above 3.000.000 € | 3.000.000 € solidarity-tax threshold (ITSGF) | This is the one real threshold to plan around. Here the ITSGF can apply no matter what the regional bonification says. This is the situation our homepage flags for individual review. |
A non-resident buyer whose wealth is nowhere near this threshold, and who is buying a single holiday property, is the ordinary case. The ordinary case owes nothing under either tax. Confirming which case applies to you specifically, especially at a higher price, is exactly the kind of question Arevont hands to an independent tax adviser rather than answering itself.
Can a non-resident even claim an Andalusian benefit at all?
Yes, and this is a real, recent change, not just an obvious fact. Since 2021, after an EU-driven reform, a non-resident (from the EU/EEA, and more widely since then) who is taxed on Spanish assets can choose to apply the rules of the autonomous community where those assets are located. This means they are not stuck with only the national default rules. For a foreign buyer with a property in Andalusia, this is what makes the 100 % regional bonification something you can really claim, not just something residents get.
Are you resident in Spain?
- Yes, Spanish tax residentThe Andalusian regional relief applies as part of your ordinary regime, no election needed.
- No, non-resident (EU/EEA and beyond, since 2021)You may ELECT the Andalusian regime instead of the national default, which is what makes the 100 % bonification available to you at all.
This rule is based on cross-checked general knowledge of the 2021 reform, not on a primary legal text read at source. Confirm the exact scope and date with a tax adviser before relying on it.
What to confirm before you assume you are exempt
Three things, checked once, and looked at again only if your situation really changes.| Ask for | What it tells you | What a bad answer looks like |
|---|---|---|
| Your total Spanish-situated net wealth, not just the one property | If you hold more than one Spanish asset, or a Spanish asset in addition to this property, the general exempt minimum applies to the combined total, not to each item on its own. | A check that only looked at the property price and ignored anything else held in Spain. |
| Whether the Andalusian regional election has really been made on your filing | The 100 % bonification is part of Andalusia’s regime. Claiming it as a non-resident needs the correct regional election on the tax return, which does not happen automatically. | An assumption that the bonification applies, without anyone confirming that the filing shows it. |
| Your worldwide net wealth, if you are or are becoming a Spanish tax resident | For a resident, the 3.000.000 € solidarity-tax threshold is measured on worldwide wealth, not on Spanish assets alone. This is often a much bigger number to check than the property’s own value. | A check limited to Spanish assets when the person asking is, or is about to become, a Spanish tax resident. |
Below and above the solidarity threshold
The bonification looks the same either way. What it really delivers does not.| Over 3.000.000 € | Under 3.000.000 € | |
|---|---|---|
| Regional wealth tax (IP) in Andalusia | Also reduced to 0 € by the 100 % bonification. | Reduced to 0 € by the same bonification. |
| National solidarity tax (ITSGF) | Applies to the amount above the threshold. The credit mechanism described above does not reduce it. | Not applicable below the threshold. |
| Practical outcome | Roughly the same total tax as a region with no bonification, just paid to the state instead. | No wealth tax owed at all. |
| Worth individual review | Always: this is precisely the situation the homepage flags for a case-by-case check. | Rarely, for an ordinary single property. |
The mechanism, not your personal threshold
The core mechanism, Andalusia’s 100 % regional bonification alongside a national solidarity tax that it does not reduce, is confirmed by Arevont’s own homepage card. That card was written independently, and cross-checked against Ley 19/1991 and Ley 38/2022. The exact ITSGF band percentages above the 3.700.000 € nil-rate portion are NOT stated with confidence: they have not been read at source, and any figure would be a guess presented as fact, so none is published. Confirm the exact bands with a tax adviser before relying on a specific liability figure.This is general information about how the two taxes fit together, not a calculation of what you personally owe. Whether you hold other Spanish assets, whether a regional election has really been filed correctly, and where your true worldwide net wealth sits, are all questions for an independent tax adviser.We deliberately leave some things to their own guides: the separate question of income tax, whether resident or non-resident; the recurring ownership costs that apply no matter your net wealth; and what happens when you sell, which is a completely different tax event from owning the asset. Each has its own dedicated guide.
Frequently asked questions about property tax
- Does the property’s value alone decide whether I am in scope?
- Only if it is your only Spanish asset, and its value is what puts your total above 700.000 €. If you hold other Spanish assets, they are added together for the general exempt minimum. If the total stays under 700.000 €, none of this applies to you at all, bonification or not.
- What if my net worth crosses 3.000.000 € after I have already bought?
- The solidarity tax is assessed year by year, based on your position at the end of each tax year. So if you cross the threshold in a later year, you come into scope from that year onward, no matter when the property itself was bought. This is exactly the kind of change worth telling a tax adviser about as it happens, instead of finding out at filing time.
- Is this the same tax as the annual property tax, IBI?
- No, and the two are often confused. IBI is a small municipal tax on the property itself, owed by every owner no matter their net worth. It is covered in full on this site’s annual-ownership-costs guide. Wealth tax is a national and regional tax on total net wealth. For the large majority of buyers on this coast, it comes to nothing at all.
