Balearic wealth tax — Impuesto sobre el Patrimonio
Spain's wealth tax is devolved — the Balearic Islands raised their threshold to €700,000 in 2024 (up from €400K) plus a €300,000 primary-residence exemption for residents. Above that, progressive rates climb from 0.28% to 3.45%. Non-residents are taxed only on Spanish-located assets; residents on worldwide net wealth.
| Net wealth | €1,500,000 |
| Balearic threshold | −€700,000 |
| Taxable base | €800,000 |
| Bracket | Rate | Tax |
|---|---|---|
| €0 – €170,472 | 0.28% | €477 |
| €170,472 – €340,937 | 0.41% | €699 |
| €340,937 – €681,851 | 0.69% | €2,352 |
| €681,851 – €1,363,673 | 1.13% | €1,335 |
Resident vs non-resident — the big distinction
Non-residents only declare Spanish-located wealth — typically your Balearic property + any Spanish bank accounts. A €1.5M villa with no other Spanish assets puts you above the threshold; tax kicks in on the €800K above €700K.
Residents declare worldwide net wealth — Spanish property + foreign property + investment portfolios + business interests + cars + art above €100K + collectibles. Easy to hit €700K once you add it all up. The €300K primary-residence exemption helps.
Why the threshold change matters
Pre-2024, the Balearic threshold was €400K — same as Madrid's now-bonificado regime. The 2024 increase to €700K meant tens of thousands of foreign owners (Mallorca villa, no other major Spanish assets) suddenly fell back below the threshold and stopped owing wealth tax entirely. This is politically volatile — a regional government change could reverse it.
The state-level 'solidarity tax' gotcha
Spain's central government added an Impuesto de Solidaridad (Solidarity Tax) on net wealth >€3M to claw back what regional bonifications gave away. The Balearic regional rate already runs near or above the solidarity rate — most filers see no extra liability. But if you're at €5M+ and have a primary residence in a region with full bonification (Madrid, Andalucía), the solidarity tax bites. Worth modelling with a tax advisor.
What's not in this calculator
- Asset valuation methodology — property uses the highest of cadastral value, purchase price, or market value verified by the tax authority. Subtle.
- Debt deduction — mortgages, loans, and other obligations against Spanish property reduce the net wealth figure. Foreign debt against foreign property is similarly deductible for residents.
- Historical art / heritage exemptions — registered cultural heritage items are exempt above certain thresholds.
- Quota limit — total IRPF + wealth tax capped at 60% of taxable income (joint cap, residents only). Can reduce wealth tax in low-income / high-wealth years.
Spanish wealth tax is one of the most-changed parts of the tax code — thresholds, exemptions, and rates have shifted meaningfully every 2-3 years. Confirm with a Balearic tax advisor before filing.
Annual wealth tax declarations (Modelo 714) are bundled into our concierge tax-representation service for €350-500 per filer per year.
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