The Temporary Solidarity Tax on Large Fortunes is one of the most recent tax innovations. It has been approved for 2022 and will, in principle, also be in force in 2024.

The Temporary Solidarity Tax on Large Fortunes (ITSGF) is a temporary tax levied on
net wealth exceeding 3,700,000 euros..

It shares many characteristics with the wealth tax and its purpose is to tax large estates.

In this article, we will explain how this tax is structured and what its requirements are.


1.-Characteristics of the temporary solidarity tax on large estates


A.- Progressive rate

It has a progressive rate, i.e.

  • 1.7 per cent. Between 3 and 5.3 million euros.
  • 2.1 per cent. Between 5.3 and 10.6 million euros.
  • 3.5 per cent. More than 10.6 million euros.

B.- Reference value

The reference value is the net worth on 31 December of the years in which the tax is in force, and is accrued annually.


2.- How is the temporary solidarity tax on high net worths calculated?


It takes into account the net worth, i.e. the difference between assets and liabilities, the difference between assets and rights on the one hand and the taxpayer’s debts and obligations on the other.

a- Which assets are taxed

The Temporary Solidarity Tax on Large Wealth is levied on net assets exceeding 3,700,000 euros, with a minimum exemption of 700,000 euros.

b.- Tax base and valuation rules of the Temporary Solidarity Tax on Great Fortunes

The valuation rules and the determination of the taxable base are the same as for the Wealth Tax:

Article 9 of Law 19/91 on Wealth: The taxable base of the tax is the value of the net wealth of the taxpayer, calculated by the difference between:

  • a. The value of the assets and rights owned by the taxpayer, and
  • b. The real costs and charges, if they reduce the value of the assets or rights concerned, and the debts or personal obligations for which the taxpayer is liable.


3.- Who are the taxpayers of the net worth tax?


1.- Taxpayers of the Temporary Solidarity Tax on Net Worth, as provided for in article 3, paragraph 5, of Law 38/2022, are the following

The taxpayers of this tax are, in the same terms, those who are taxpayers of the Wealth Tax, in accordance with the provisions of Law 19/1991, of 6 June, on the Wealth Tax.

Article 5 of the Wealth Tax regulates who are the taxpayers of this tax:

  • a) By personal obligation, individuals who have their habitual residence in Spanish territory, the tax being levied on the totality of their net wealth, regardless of the place where the assets are located or the rights may be exercised.
    When a resident of Spanish territory moves to another country, he or she may opt to continue to be taxed in Spain on his or her personal liability. This option must be exercised by filing a personal tax return in the first year in which he/she ceases to be resident in Spain.
  • b) By means of a real obligation, any other natural person for the assets and rights of which he is the owner, when they are located in Spanish territory, can or must be exercised.

2.- Taxation of non-residents of the Temporary Solidarity Tax on High Net Worth Individuals

Non-residents in Spain are also subject to the Temporary Solidarity Tax on Net Worth, for assets and rights located in Spain, with the possibility of deducting the taxes and charges that affect these assets and rights.


4.- Double taxation of the temporary solidarity tax on great fortunes with the net worth tax


The Temporary Solidarity Tax on Wealth is a State tax that seeks to avoid the exemptions in the wealth tax of certain Autonomous Communities, such as Madrid and Andalusia.

In order to avoid double taxation, the amount of the wealth tax can be deducted from the amount of the tax on large fortunes.

This means that the capital gains tax will have a particular impact on large estates in the Autonomous Communities of Madrid, Andalusia and Galicia, due to their lower capital gains tax rates.

In Galicia (25%), the Community of Madrid (100%) and Andalusia (100%), there are bonuses on the full amount of the wealth tax.


5.- Presentation of the temporary solidarity tax on large wealths


The period for filing the Tax on Great Fortunes is from 1 July to 31 July, using form 718 of the Tax Agency, electronically.

For any question related to the wealth tax or the temporary solidarity tax on the great fortunes, please contact us.