Tax
Many British, German, French and American residents choose the Costa del Sol partly for its wealth taxation. And with good reason: Andalusia applies a 100% relief on Wealth Tax, so the regional liability is effectively zero. That said, "there's no Wealth Tax in Andalusia" is a simplification worth qualifying.
The regional relief. Andalusia relieves 100% of the Wealth Tax liability. In practice, the regional component comes to zero, and that is one of the reasons large estates choose Marbella over other locations.
The state tax that is not relieved. There is a Solidarity Tax on Large Fortunes, at state level, which taxes net wealth above €3 million. The Andalusian relief does not reach it. For sizeable estates this is the key piece: the regional reduction may be, in part, offset by the state tax.
Non-residents can benefit too. Since 2021, a non-resident may opt to apply the rules of the autonomous community where the greatest value of their Spanish assets lies. If that greatest value is in Andalusia, they can take its 100% relief.
Legal analysis. Three rules intersect. The Andalusian relief comes from Decree-Law 7/2022 of the Andalusian Government. The Solidarity Tax on Large Fortunes was created by Law 38/2022 and has been kept with a view to permanence. And the non-resident's option to apply the regional rules comes from Law 11/2021, which extended that possibility beyond the EU/EEA. Planning an international estate, spread across several countries and with a state threshold at €3 million, is not something to improvise: you must look at the valuation of the assets, the thresholds and the double-taxation treaties. We study it case by case so you pay what is fair, no more and no less.
Is your estate above €3 million or spread across several countries? Let's talk early, and with numbers.
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