🌍 Spanish Wealth Tax for Non-Residents: The Real Obligation

The Spanish Wealth Tax (Impuesto sobre el Patrimonio) operates differently for non-residents than for tax residents. Non-residents are taxed under the “Real Obligation” rule, meaning they are only assessed on assets situated in Spanish territory.

🏛️ Tax Jurisdiction: State vs. Region

• Tax Residents (Personal Obligation): Taxed on worldwide assets, with the tax revenue and rules largely managed by the Autonomous Community where they reside.
• Non-Residents (Real Obligation): Taxed only on Spanish assets, with the tax liability, management, and collection falling under the State Tax Agency (AEAT).

💡 Non-Resident Choice for Regional Rules

Non-residents from the EU/EEA (and now all non-residents due to legal changes) may opt to apply the Wealth Tax rules (including exemptions and tax rates) of the Autonomous Community where the highest value of their Spanish assets is located. This can be highly beneficial in regions that offer significant tax relief or high minimum exemptions.

📝 Who Must File (Form 714)

Non-residents are obligated to file a Wealth Tax return (using Form 714) if either of these conditions is met:

1. The Taxable Base (Net Assets after deducting debts and the general exemption) results in a positive tax amount due.
2. The value of their Gross Assets (total Spanish assets before deductions or exemptions) exceeds €2,000,000.

Exemption Thresholds

The following allowances are applied to the net value of Spanish assets:

• General Exemption (Mínimo Exento): Non-residents benefit from the €700,000 general minimum exemption.
• Primary Residence Exemption: Non-residents generally cannot apply the $€300,000$ exemption for a primary residence, as Spain is not their habitual residence for tax purposes.

⚖️ Taxable Assets under Real Obligation

Only assets considered “located, exercisable, or required to be fulfilled” in Spain are subject to this tax.

The Role of Double Taxation Agreements (DTAs)

DTAs signed between Spain and your country of residence (often following the OECD Model) dictate the taxing rights over different types of assets.

• Real Estate: Generally, the DTA grants Spain the right to tax real estate situated in its territory.
• Other Assets: For most other assets (bank deposits, non-real estate-backed shares), the DTA often grants the exclusive right to tax to the country of residence. It is essential to check the specific DTA to confirm.

📉 Deductions and Liabilities

For the non-resident calculation, only debts that are directly linked to the Spanish-located assets can be deducted.

• Deductible Debts: This typically includes mortgages or loans used specifically for the acquisition or improvement of Spanish property or other taxable assets.
• Proof: The debt must be documented and demonstrably tied to the Spanish asset.

📊 State Wealth Tax Rates (Default Scale)

If the non-resident does not opt to apply the tax rules of a specific Autonomous Community, the following State Tax Scale applies to the Base Liquidable (Taxable Base: Spanish Net Assets minus the €700,000 minimum exemption).

💼 Special Regimes

Beckham Law Taxpayers (Special Inbound Worker Regime)

Individuals who elect to be taxed under the Special Tax Regime for Displaced Workers (Ley Beckham) are considered tax residents for income tax purposes but are subject to Wealth Tax under the Real Obligation rule (taxed only on Spanish assets). They also have the benefit of choosing a specific regional regulation.