Valencia has doubled its Wealth Tax exemption threshold from €1 to €2 million, effective 2026. Here’s what it means for foreign residents and property investors.
Individuals who are non-residents in Spain and own property in Spain are required to pay certain taxes to the Spanish Tax Authorities.
The Spanish Supreme Court has issued two rulings confirming that taxpayers who are non-residents in Spain may also reduce their Wealth Tax liability according to their income, as applies to taxpayers resident in Spain.
In a groundbreaking decision issued on 28 July 2025, Spain’s National Court (Audiencia Nacional) has recognized, for the first time, the right of non-EU and non-EEA taxpayers to deduct expenses directly related to their Spanish-sourced income under the Non-Resident Income Tax (IRNR) regime.
Valencian Community Act number 5/2025, of May 30, 2025, establishes that, as of December 31, 2025 (inclusive), all residents in the Valencian Community who are subject to the Wealth Tax under personal liability will have an exempt minimum of €1,000,000
PSOE, which is the party currently governing Spain, has recently submitted a draft bill to the Spanish Congress containing a series of measures that, according to that party, aim to improve access to housing.
The Madrid Regional Assembly has approved a new personal income tax (IRPF) deduction, aimed at foreign investors who relocate to the Madrid region.
The Constitutional Court (TC) is pending to resolve an appeal of unconstitutionality against the regulatory changes introduced in the Wealth Tax by the Law 11/2020 of the General State Budget for the year 2021 (LPGE 2021).
On 31 January 2024, Order HAC/56/2024 was published introducing amendments in relation to the filing of Form 210. This Form is used to declare real estate income obtained by Non-Residents with real estate located in Spain.
Since January 1st is open the term to file Spanish Tax Form 720 related to the obligation of Spanish tax residents to file an informative declaration of the assets and rights hold abroad.
