For years, the advice was simple: “If you have money, move to Madrid.”
While regions like Catalonia and Valencia were taxing global assets aggressively, Madrid offered a 100% bonification (discount) on the Impuesto sobre el Patrimonio. You could have €10M in the bank and pay €0.
In 2026, that party is over.
The introduction of the “Solidarity Tax on Large Fortunes” (Impuesto de Solidaridad) has harmonized the playing field for the ultra-wealthy.
However, there is still a “Middle Zone” where geography matters. And there is still one “Nuclear Shield” that protects everyone.
The Three Tiers of Wealth in 2026
To understand your risk, you must know which tier you fall into.
Tier 1: The “Comfortable” (€700k - €3M Net Worth)
Winner: Madrid & Andalusia.
- The Law: The National Solidarity Tax only kicks in at €3,000,000.
- The Reality: If you have €2M in global assets:
- In Barcelona, you pay regional Wealth Tax (~€15,000+).
- In Madrid, you pay €0.
- Verdict: If you are in this tier, Madrid is still a tax haven. Stay away from high-tax regions.
Tier 2: The “High Net Worth” (>€3M Net Worth)
Winner: None (Unless you have the Beckham Law).
- The Law: Once you cross €3M, the National Solidarity Tax hits you.
- The Trap: The Solidarity Tax allows you to deduct what you paid in Regional Wealth Tax.
- In Barcelona, you pay the Regional Tax. You deduct it from the National Tax. Result: You pay.
- In Madrid, you pay €0 Regional Tax. So you pay the full National Tax. Result: You pay.
- Verdict: Geography no longer saves you. Whether you live in Serrano or Sitges, the tax man is coming for roughly 1.7% - 3.5% of your assets above €3M.
Tier 3: The “Beckham Law” Elite
Winner: Anywhere in Spain.
This is the only true escape route left.
If you apply for the Special Expats Regime (Beckham Law), the rules of the game change completely.
Under the standard tax regime, you are taxed on Global Assets (World-wide). Under the Beckham Law, you are taxed ONLY on Spanish Assets.
- Scenario: You have €10M in US Stocks and a €500k house in Madrid.
- Without Beckham Law: You pay Wealth/Solidarity tax on €10.5M. (Painful).
- With Beckham Law: You pay Wealth Tax on €500k. Since this is below the €700k exempt threshold, you pay €0.
The JuroSpain Strategy
Don’t choose your city based on old advice.
- If you are worth <€3M: Move to Madrid or Andalusia to avoid regional taxes.
- If you are worth >€3M: Your location doesn’t matter. Your Visa Strategy matters. You must secure the Digital Nomad Visa or HQP Visa to unlock the Beckham Law.
The Beckham Law is not just about income tax anymore. In 2026, it is primarily a Wealth Tax Shield.
Frequently Asked Questions
Does Madrid still have a 100% bonification on Wealth Tax in 2026?
Technically, yes. Madrid does not charge the regional 'Impuesto sobre el Patrimonio'. However, the National 'Solidarity Tax' applies to net assets over €3M, effectively canceling out this benefit for the ultra-wealthy.
Does the Beckham Law protect me from Wealth Tax?
YES. This is the most important loop. Under the Beckham Law, you are only liable for Wealth Tax on assets LOCATED IN SPAIN. Your crypto, foreign stocks, and US real estate are 100% exempt, regardless of their value.
What is the threshold for Wealth Tax in other regions (Valencia, Catalonia)?
In most regions, the tax kicks in at roughly €700,000 of global assets (plus €300,000 for your main home). If you have €1.5M in assets, Madrid is a tax haven (you pay €0). If you have €5M, Madrid is no better than anywhere else due to the Solidarity Tax.
Does a mortgage reduce my Wealth Tax?
Yes. Wealth Tax is calculated on NET assets. A mortgage on your Spanish home reduces your taxable base.
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