🌍 Temporary Solidarity Tax (ITSGF) for Non-Residents: DTA Scenarios
For individuals who are not tax residents in Spain, the application of the Temporary Solidarity Tax on Large Fortunes (ITSGF) is primarily determined by two factors: the location of the assets and the specifics of the Double Taxation Agreement (DTA) between Spain and the taxpayer’s country of residence.
If you’re unsure where to begin, check out our comprehensive tax obligation strategy. Taxes in Spain Guide 2026.
Non-residents are only taxed on assets situated in Spain (the Real Obligation rule), but international treaties often dictate which assets Spain has the right to tax.
⚖️ Non-Resident Case Scenarios: The DTA’s Role
The most complicated aspect is determining whether Spain can tax the value of shares in a foreign company whose main asset is Spanish real estate. The answer depends entirely on the DTA category:
Scenario A: No DTA or DTA Lacks a Wealth Tax Clause (e.g., USA)
In the absence of a specific treaty or wealth tax clause, the general principle of Spanish law applies, often leading to a conservative approach to avoid international conflict.
- Rule Applied: The taxpayer is taxed directly on the value of the Spanish real estate.
- Result: Spain DOES NOT tax the entire value of the foreign company holding the property; it only taxes the portion of the company’s capital that corresponds to the value of the asset located in Spain.
- ITSGF: The non-resident’s Spanish-located asset value is subject to the ITSGF, with the regional Wealth Tax (WT) amount paid being deducted from the final ITSGF due.
Scenario B: DTA Includes a Specific Wealth Tax Clause (e.g., Germany, France)
Some DTAs explicitly grant Spain the right to tax shares or rights that derive their value predominantly from Spanish property.
- Rule Applied: The non-resident IS affected by the Spanish regulatory modification.
- Result: The taxpayer MUST pay tax on:
- The value of real estate directly owned in Spain.
- The proportional value of Spanish or foreign companies whose main asset is Spanish real estate.
- ITSGF: The determined taxable base is subject to the ITSGF, less the amount paid for the regional WT.
Scenario C: DTA Includes a WT Clause but Lacks a Specific Clause on Property-Rich Companies (e.g., Switzerland)
In this scenario, where the DTA grants tax rights but lacks a specific clause regarding the taxing of company shares tied to Spanish real estate, the DTA typically prevails.
- Rule Applied: The non-resident is generally NOT affected by the Spanish regulatory modification.
- Result: Spain often CANNOT tax the value of shares/holdings (Spanish or foreign) whose main asset is real estate in Spain, as the DTA does not grant Spain the explicit right to tax those shareholdings.
- ITSGF: Taxed only for properties directly located in Spain of which the individual is the direct owner.
🧮 Calculation and Filing (Modelo 718)
ITSGF Calculation for Non-Residents
The calculation follows the same progressive rate scale as residents (1.7% to 3.5%) but requires the taxpayer to apply a reduction, as an exempt minimum, of €700,000 to the Spanish taxable base.
- Deduction: The amount paid for the regional Wealth Tax (WT) is deducted from the ITSGF amount. The Solidarity Tax only applies if the calculated tax is greater than the WT paid.
🔗 Filing and Assistance
The filing of the ITSGF is done using Form 718. In cases where the tax is payable in certain Autonomous Communities (like Andalusia, Madrid, Galicia, and Cantabria) that offer a 100% WT bonus, the calculation must be accurately completed to determine the final ITSGF amount due.
🔗 AEAT Simulator: To assist with this calculation, the Tax Agency (AEAT) typically enables an assistance program or “Open Simulator” for Form 718 for the relevant fiscal year. You must check the AEAT portal for the direct link to the Modelo 718 Simulator.
