The Wealth Tax was established by Law 19/1991, of June 6, aimed at contributing only taxpayers with a special economic capacity, for which the limit of the exemption of the habitual residence has been raised to a maximum amount of 300,000 euros and the exempt minimum has been set at 700,000 euros, although it should be remembered that the Autonomous Communities have broad regulatory powers over the latter for their residents and some have modified the amount of the exempt minimum.

The Wealth Tax is a tax of a direct nature and personal nature that taxes the net worth of individuals.

The net worth of the natural person constitutes the set of assets and rights of economic content of which the same is the owner,with deduction of the charges and encumbrances that diminish their value, as well as of the debts and personal obligations of which its holder must respond.

The Wealth Tax is applied throughoutthe national territory, without prejudice to the foral tax regimes of Agreement and Economic Agreement in force in the Historical Territories of the Basque Country and the Autonomous Community of Navarre, respectively.

Transfer of Wealth Tax to the Autonomous Communities

The Wealth Tax is a tax whose income is transferred in its entirety to the Autonomous Communities.

As a result of the assignment, the Autonomous Communities may assume regulatory powers over the exempt minimum,tax rate and deductions and bonuses of the quota.

Accrual of Wealth Tax

The Wealth Tax is due on December 31 of each year and affects the assets held by the taxpayer on that date.

Within this Tax it is possible to distinguish two types of subjects that must comply with the taxation of said tax:


  1. Natural persons who have their habitual residence in Spanish territory.
  2. Individuals of Spanish nationality with habitual residence abroad who are taxpayers of the IRPF.


  1. Individuals who do not have their habitual residence in Spain
  2. Natural persons who do not have their habitual residence in Spain and are holders of assets or rights that are located, can be executed or have to be fulfilled in Spanish territory.

Exemptions from Wealth Tax

The following assets and rights are exempt from Wealth Tax:

  1. The assets that make up the Spanish Historical Heritage
  2. The assets forming part of the Historical Heritage of the Autonomous Communities
  3. Certain objects of art and antiques
  4. Household trousseau
  5. Rights of economic content in the following instruments
  6. Rights derived from intellectual or industrial property
  7. Securities belonging to non-residents whose income is exempt
  8. Business and professional heritage. This exemption includes the assets and rights of natural persons necessary for the development of their economic, business or professional activity provided that it is exercised in a habitual, personal and direct way by the taxpayer and constitutes their main source of income.

The application of the exemption is conditional on the fact that on the date of accrual of the tax (December 31) the following requirements are met:

  1. That the assets and rights are affected by the development of an economic, business or professional activity, in the terms of article 29 of the Personal Income Tax Law.
  2. That the economic, business or professional activity to which said goods and rights are affected is exercised in a habitual, personal and direct way by the taxpayer who owns them.
  3. That the economic, business or professional activity constitutes the main source of income of the taxpayer.
  4. Participations in certain entities,with or without quotation in organized markets, excluding participations in Collective Investment Institutions.

In order for the exemption to apply, the following requirements and conditions must be met by the date of the accrual of tax (31 December):

  1. That the entity, whether or not it is corporate, carries out an economic activity and does not have as its main activity the management of movable or immovable assets.
  2. That the taxpayer’s participation in the capital of the entity is at least 5 per 100, computed individually, or 20 per 100 jointly with his spouse.
  3. That the taxpayer effectively exercises management functions in the entity.
  4. That the taxpayer receives a remuneration that represents more than 50 per 100 of all his net income
  5. Amount of the exemption. The exemption covers the entire value of the shares, provided that the entire net worth of the entity is affected by the economic activity carried out.