The Solidarity Tax on Large Fortunes is a national tax on individuals whose net wealth exceeds €3 million. It mirrors wealth tax in how it's calculated, but it's set by central government so regions can't rebate it away. Crucially, wealth tax you've already paid is credited against it — so in regions that charge wealth tax in full, there's often little or no extra solidarity tax to pay; it bites mainly on the very wealthy in rebate regions like Madrid, who would otherwise pay nothing. Residents are assessed on worldwide assets, non-residents on Spanish assets, with allowances broadly tracking the wealth-tax rules (including the roughly €700,000 personal allowance). For most expats it's not relevant — but for high-net-worth movers it's an essential part of the picture.
What It Is & Why It Exists
To understand the solidarity tax you have to understand the problem it was created to solve. Spain's traditional wealth tax is devolved to the regions, and over the years several regions — most prominently Madrid — used that power to apply a 100% rebate, effectively abolishing wealth tax locally. That meant a very wealthy person resident in Madrid could legally pay no wealth tax at all, while an equally wealthy person in a region that charged it in full paid a substantial annual sum. Central government regarded that as a gap, and in late 2022 introduced the Impuesto de Solidaridad de las Grandes Fortunas to close it.
Because it's a state tax rather than a regional one, the autonomous communities can't rebate it away. Its design deliberately mirrors wealth tax — similar valuation rules, similar allowances, similar concept of net assets — but it only engages above a high threshold and credits any wealth tax already paid. The practical effect is elegant from the government's point of view: in regions that already charge wealth tax in full, the solidarity tax adds little or nothing (because the credit soaks it up), while in rebate regions it captures the very wealthy who were previously paying zero. It was initially announced as a temporary measure but has been extended, and remains in force.
Who Pays It
The solidarity tax is squarely aimed at high net worth, so the population it affects is small and specific:
- Individuals with net wealth above €3 million. Below that figure (after the personal allowance), the tax simply doesn't engage — so the great majority of expats, including most retirees and property owners, are entirely outside it.
- Residents are assessed on their worldwide net assets; non-residents only on Spanish-situated assets — the same residence-based split as wealth tax.
- In practice, the very wealthy in rebate regions. Someone with several million in assets living in Madrid (or another full-rebate region) is the archetypal payer, because they have no wealth tax credit to offset it.
If you're a high-net-worth individual considering a move to Spain — say, selling a business and relocating with substantial liquid wealth, or a wealthy retiree — this is one of the taxes that should be modelled before you choose where in Spain to live and how to hold your assets. For everyone else, it's reassuring background: a tax that exists but won't touch you.
Most expats are well outside it
The €3 million net-wealth floor means the solidarity tax is irrelevant to the vast majority of expats. It matters specifically for high-net-worth individuals — and especially those resident in regions that rebate ordinary wealth tax, where there's no credit to absorb it.
The €3 Million Threshold
The tax is structured around bands of net wealth that begin once you clear the threshold. The widely understood structure is that net wealth up to €3 million is not taxed, with progressive rates then applying to wealth above that — rising through higher bands for the largest fortunes. Alongside the €3 million floor, the same kind of personal allowance that applies to wealth tax (around €700,000) is generally available, which is why the point at which the tax genuinely starts to bite is effectively net assets comfortably into seven figures.
Two practical points follow. First, "net wealth" means assets minus debts, valued under broadly the same rules as wealth tax — so an outstanding mortgage reduces the figure, and the highest-of-three property valuation applies. Second, because the threshold is per person, ownership structure matters: assets genuinely split between spouses are assessed individually, so a couple's combined wealth can sit below the per-person trigger even when their joint total looks large. The valuation and apportionment detail is where careful work pays off for anyone near the line.
How It Interacts with Wealth Tax
This is the heart of the matter, and the part that generic articles get muddled. The two taxes are coordinated, not cumulative: you don't simply pay both in full on the same assets. Instead, the solidarity tax allows a credit for the wealth tax you've already paid in the same year. The effect depends entirely on your region:
| Your region | Wealth tax | Solidarity tax effect |
|---|---|---|
| Full-rebate region (e.g. Madrid) | Effectively €0 | No credit to offset — solidarity tax applies in full above €3m |
| Region charging wealth tax in full | Substantial | Credited against solidarity tax — often little or no extra to pay |
| Partial-rebate region | Reduced | Partial credit — some top-up solidarity tax may arise |
So the solidarity tax doesn't really increase the burden for a wealthy person in a region that already taxes wealth — it essentially substitutes for it. Its real effect is on the wealthy in rebate regions, who lose the advantage of that rebate at the very top end. This is exactly what central government intended: it neutralises the regional rebate for the largest fortunes while leaving the rebate intact for everyone below the €3 million threshold. Understanding which side of that you're on is the key to knowing what you'll actually pay, which is why we always look at wealth tax and solidarity tax together rather than separately.
Rates & the Combined Cap
The solidarity tax applies progressive rates to net wealth above the €3 million threshold, with the percentage rising through higher bands as fortunes grow into the tens of millions. The exact band boundaries and percentages are set in the national legislation and can be adjusted, so they should be confirmed for the year in question.
Importantly, the solidarity tax also respects a combined cap similar to the one in wealth tax — a limit on the total of income tax, wealth tax and solidarity tax as a proportion of income. For individuals who are very asset-rich but have relatively modest taxable income (which can be the case for those living off capital rather than salary), this cap can reduce the solidarity-tax bill. As with wealth tax, the cap only helps if it's properly calculated, and getting it right at this level of wealth genuinely matters, because the sums involved are large.
Residents vs Non-Residents
The residence split mirrors wealth tax. Residents are assessed on their worldwide net assets above the threshold — so the global wealth of a high-net-worth individual who becomes Spanish tax resident is in scope. Non-residents are assessed only on Spanish-situated assets, which in practice means very high-value Spanish real estate or other Spanish holdings exceeding the threshold. A non-resident with a single coastal villa, however nice, is unlikely to be near the €3 million net Spanish-assets trigger, but those with substantial Spanish property portfolios could be.
For high-net-worth individuals contemplating Spanish residency, the worldwide-assets rule is the crucial planning trigger: the move that makes you resident is the move that brings your global fortune within reach of both wealth tax and the solidarity tax. That's precisely why the period before becoming resident — and the choice of region — is where the meaningful planning happens. Our tax residency guide explains how the residence line is drawn, and our Beckham Law comparison is relevant for some inbound workers, though the Beckham regime has its own asset-reporting nuances at this level.
Planning & Common Mistakes
At this level of wealth, the mistakes are expensive, so the value of getting it right is correspondingly high:
- Assuming a Madrid move means no wealth taxes at all. The rebate removes ordinary wealth tax, but the solidarity tax exists precisely to catch the very wealthy there — so the headline "Madrid has no wealth tax" is incomplete above €3 million.
- Double-counting the two taxes. They're coordinated through a credit, not simply stacked — failing to apply the credit overstates the bill in full-charging regions.
- Ignoring the combined cap. Asset-rich, income-light individuals can reduce the bill through the cap, but only with proper calculation.
- Overlooking the worldwide-assets trigger of residency. Becoming resident brings global wealth into scope — the planning window is before the move.
- Treating it as permanent and fixed. It began as a temporary measure, has been extended, and its bands can change — so it needs reviewing each year, not setting and forgetting.
- Going it alone. Valuation, apportionment between spouses, the wealth-tax credit and the cap all interact; at seven- and eight-figure wealth, professional structuring is well worth it.
How We Help
We advise high-net-worth expats on where they stand under both the solidarity tax and wealth tax, and how the two combine in their region. For those considering a move, we model the position before residency is triggered — when planning is still possible — including the choice of region and how assets are held. For those already resident and in scope, we prepare the filings, apply the wealth-tax credit and the combined cap correctly, and coordinate with Modelo 720 reporting and the wider tax picture. It's high-stakes, detailed work, handled in plain English on a clear quote. Book a consultation to review your exposure.
Related Guides
Beckham Law vs Standard Tax
The inbound regime that can change the picture for some movers.
Beckham Law →Frequently Asked Questions
It's a national Spanish tax (Impuesto de Solidaridad de las Grandes Fortunas) on individuals whose net wealth exceeds €3 million. Introduced in late 2022, it mirrors wealth tax in how it's calculated but is set by central government so regions can't rebate it away. It was designed largely to ensure the wealthiest residents of rebate regions like Madrid still pay something on very large fortunes.
It engages on net wealth above €3 million. Alongside that floor, a personal allowance of around €700,000 generally applies, so the point at which it genuinely bites is net assets comfortably into seven figures. Because the threshold is per person, assets genuinely split between spouses are assessed individually. The vast majority of expats are well below the trigger and unaffected.
Not in full on the same assets — they're coordinated through a credit. Wealth tax you've already paid is credited against the solidarity tax. So in regions that charge wealth tax in full there's often little or no extra solidarity tax, while in full-rebate regions like Madrid (where there's no wealth tax to credit) the solidarity tax applies above €3 million. The effect depends on your region.
For wealth below €3 million, Madrid's rebate means effectively no wealth tax. But above €3 million, the solidarity tax exists precisely to catch the very wealthy in rebate regions, since there's no wealth tax credit to offset it. So "Madrid has no wealth tax" is true for most people but incomplete for very high net worth, who can face the solidarity tax there.
Only on Spanish-situated net assets above the threshold. A non-resident with a single high-value property is unlikely to reach the €3 million net Spanish-assets trigger, but those with substantial Spanish property portfolios could be. Residents, by contrast, are assessed on their worldwide net assets, which is why becoming tax resident is the key planning trigger for high-net-worth individuals.
It was introduced as a temporary measure for 2022–2023 but has been extended and remains in force, and its bands and rates can be adjusted by legislation. Because of that, it's not something to assess once and forget — high-net-worth individuals should review their position each year, alongside wealth tax, as the rules and their own circumstances change.
Yes. The solidarity tax respects a combined cap similar to wealth tax's — limiting the total of income tax, wealth tax and solidarity tax to a proportion of income. For individuals who are very asset-rich but income-light, this cap can reduce the solidarity-tax bill. As with wealth tax, it only helps if it's properly calculated, which at this level of wealth is well worth doing.
If your net wealth is into the millions, yes — the move that makes you resident brings your worldwide assets within reach of both wealth tax and the solidarity tax, so the meaningful planning happens before residency is triggered. That includes the choice of region and how assets are structured. We model the position in advance and handle the filings once you're resident.