Wealth and Solidarity Tax for Valencia residents and non-residents

Start with tax residence and the assets within scope

Your nationality or having a Spanish NIE does not, by itself, determine which assets are taxed. Under the general rules, Spanish tax residents are subject to Wealth Tax on their worldwide wealth, known as obligación personal. Non-residents are taxed on assets and rights located, exercisable or enforceable in Spain, known as obligación real, subject to any restrictions in the applicable tax treaty.

We check your tax residence for the year, the relevant autonomous community, ownership of each asset and any special tax regime that could change the assessment. If you use the impatriate tax regime, a separate review is needed; conclusions under the general residence rules cannot simply be carried across.

The Valencian Wealth Tax allowance for 2026

For taxpayers habitually resident in the Comunitat Valenciana and taxed on their worldwide wealth, the tax-free allowance is €2,000,000. This wording of Article 8 of Valencian Law 13/1997 has applied since 11 August 2026, following Law 5/2026.

For a non-resident, the state allowance is €700,000. Non-residents have the right to apply the rules of the autonomous community containing the greatest value of their Spanish assets and rights subject to Wealth Tax. If that community is Valencia and its rules are applied, its €2,000,000 allowance comes into play. We must check all relevant Spanish assets and apply the regional rules consistently, including the tax scale and any applicable reliefs; owning one property in Valencia is not enough to settle the question.

You may need to file Form 714 even when no Wealth Tax is payable

A Wealth Tax return is required if tax remains payable after the applicable deductions and reliefs. It is also required when the tax value of your assets and rights is more than €2,000,000, even if no tax is payable.

For this second test, exempt assets are included and debts, charges and encumbrances are not deducted. The assets considered are those within your worldwide or Spanish-only tax liability, as applicable. This filing threshold and the Valencian allowance currently use the same number, but they are calculated differently and serve different purposes.

Solidarity Tax is a separate calculation: Form 718

Spain’s Temporary Solidarity Tax on Large Fortunes remains in force following its statutory extension. Its taxable event concerns net wealth exceeding €3,000,000, but passing that amount does not automatically mean tax is payable.

It has a €700,000 tax-free allowance, including for non-residents, and the first €3,000,000 of the taxable amount after that allowance is charged at 0%. Wealth Tax actually paid for the year is then deductible, and any applicable tax liability limits and other deductions must be checked. The Valencian Wealth Tax allowance does not replace the state allowance for Solidarity Tax.

Within the scope of this guide, Form 718 is required when the final tax liability is positive. It does not use Form 714’s separate gross-asset filing test. We coordinate both calculations before concluding what is payable and which returns are required.

Homes, investments and debts: evidence matters

The Wealth Tax exemption for a qualifying main home is capped at €300,000 per taxpayer. A second home or holiday property in Spain is not exempt simply because it is your only Spanish property. The Wealth Tax exemptions also apply to Solidarity Tax under the terms of its legislation.

We review the tax values of property, accounts, investments and shareholdings, your ownership share and any exemptions that can be supported. Debts need evidence: for non-residents, deduction is restricted to debts connected with the taxable Spanish assets on the terms set by law. A mortgage secured on a property does not, by itself, establish that the entire debt is deductible.

Do you need a tax representative in Spain?

The representation rules differ between the two taxes. For Wealth Tax, a non-resident must appoint a representative resident in Spain when operating through a permanent establishment or when the tax authority requires it because of the amount and characteristics of the Spanish wealth. Being a non-resident alone does not trigger this requirement.

For Solidarity Tax, non-residents outside the European Union must appoint a representative resident in Spain before the filing deadline. There is an exception for non-EU European Economic Area states covered by rules on mutual assistance in both exchange of information and collection. We also check whether a move before filing creates an additional representation obligation. A legally required tax representative and the authority for our firm to file a return are separate matters.

The 2026 tax point and our work

Both taxes are assessed on 31 December 2026. This guide reflects legislation checked on 4 November 2026; changes adopted before year-end and the filing calendar for each form in 2027, including payment by direct debit, must be checked before filing. The tax assessment date is different from the filing deadline.

For an initial enquiry, tell us the tax year, your country of tax residence, where your assets are located and whether you have filed Wealth Tax or Solidarity Tax before. We then agree the scope, quote and documents needed to review values, debts, exemptions and previous returns. Preparation and filing take place with the appropriate authorisation.

Sources and date checked

Legislation checked on 4 November 2026 for the 2026 assessment date:

• Law 19/1991: Articles 2, 4–6, 9, 28–29, 37 and Additional Provision 4
• Valencian Law 13/1997: Article 8
• Law 5/2026: Article 19 and Final Provision 5
• Law 38/2022: Article 3
• Royal Decree-Law 8/2023: Additional Provision 5.2, extension
• Spanish Tax Agency: Wealth Tax filing obligation
• Spanish Tax Agency: Form 718 and current legislation