Although originally declared temporary, the tax remains fully in force and is no longer “temporary.” While the Solidarity and Large Fortunes Wealth Tax (ITSGF) was initially created for the 2022 and 2023 tax years by Law 38/2022 of December 27, its validity was extended indefinitely by Royal Decree-Law 8/2023 of December 27.

The law stipulates that the tax will remain in place “until wealth taxation is reviewed within the context of the reform of the regional financing system.” In practice, this means that it no longer has a specific end date and has become a structural tax within the Spanish tax system.

Who is required to file a Wealth Tax return?

The ITSGF (Tax on Transfers of Assets) is levied on individuals whose net worth exceeds €3,000,000, after applying the general exemption threshold of €700,000 and the exemptions specific to the Wealth Tax (for example, family businesses or primary residences, within their limits).

Since 2024, the €700,000 exemption threshold also applies to non-residents, eliminating previous discrimination.

What is the tax rate?

The state scale of the Wealth Tax (ITSGF) is 1.7% for amounts between €3,000,000 and €5,347,998, 2.1% for amounts between €5,347,998 and €10,695,996, and 3.5% for amounts over €10,695,996.

This tax is complementary to the Wealth Tax, so the amount actually paid for Wealth Tax is deducted from the ITSGF liability; in other words, only the difference, if any, is paid.

What are the differences between Solidarity and Large Fortunes Wealth Tax and the regional Wealth Taxes?

The Wealth Tax is a state tax, not ceded to the Autonomous Communities. Therefore, the Autonomous Communities cannot offer reductions or modifications, and it is designed, in practice, to neutralize the regional reductions in the Wealth Tax (Madrid, Andalusia, Galicia, etc.). We have more detailed information published on our blog.

For this reason, it particularly affects high-net-worth individuals residing in regions with tax breaks or low maximum tax rates.

When is the Solidarity and Large Fortunes Wealth Tax due?

It is due between July 1st and 31st of the following year, using form 718, which must be filed electronically, based on the net worth as of December 31st of the previous year.

It is advisable to analyze each specific case in advance and seek specialized advice from US Tax Consultants. Do not hesitate to contact us by phone at +34 915 194 392, by email at info@ustaxconsultans.es , or through a free consultation, which can be booked via the “Book a free appointment” link on our website.