Investing in Spain can be highly attractive, especially in Málaga and the Costa del Sol, but understanding the Solidarity Tax on Large Fortunes is essential to avoid unexpected costs.
Although Wealth Tax has been abolished in Andalusia, the national Solidarity Tax still applies to individuals with net assets exceeding €3.7 million per person.
Residents are taxed on their worldwide assets.
Non-residents are taxed on assets located in Spain, including real estate, bank accounts, and investment portfolios.
Without proper planning, some investors have faced annual tax bills of up to €500,000. Structuring investments correctly — for example, purchasing jointly with a spouse or partner — can significantly reduce or even eliminate this tax.
Early professional tax and legal advice is key to investing in Spain with confidence and peace of mind.