Healthcare

What Is Solidarity Tax in Spain and Does It Affect NLV Holders?

Complete guide to Solidarity tax spain nlv — Spain Non-Lucrative Visa information and advice from My Spanish NLV.

Spain introduced the Impuesto Temporal de Solidaridad de las Grandes Fortunas (Temporary Solidarity Tax on Great Fortunes) in 2023. Despite being called "temporary," it has been extended and remains relevant for NLV holders with substantial assets. Here is how it works and who it affects.

What Is the Solidarity Tax?

The Solidarity Tax is a national-level wealth tax designed to ensure that high-net-worth individuals pay a minimum level of wealth tax, regardless of their region of residence. It was introduced partly to prevent high-wealth residents from benefiting from the full wealth tax exemptions offered by regions like Madrid and Andalusia.

The tax applies to individuals with net assets above €3 million who are Spanish tax residents — which includes NLV holders living in Spain full-time. For a complete overview, see our our tax guide for NLV holders. For a complete overview, see our NLV renewal guide.

Who Pays the Solidarity Tax

The Solidarity Tax applies to you if:

You are a Spanish tax resident (183+ days per year in Spain), and
Your net worldwide assets exceed €3 million

If your assets are below €3 million, the Solidarity Tax does not apply to you. For most NLV holders — retirees and those with moderate investment portfolios — the threshold means this tax is not relevant. It primarily affects high-net-worth individuals with property portfolios, large investment accounts, or business assets.

Solidarity Tax Rates

The tax applies to the portion of net assets above €3 million:

€3 million to €5 million — 1.7%
€5 million to €10 million — 2.1%
Above €10 million — 3.5%

Interaction with the Regional Wealth Tax (Impuesto sobre el Patrimonio)

Spain also has a regional wealth tax (Patrimonio), which has been in place for many years. The Solidarity Tax is designed to be a top-up, not an additional layer:

Any wealth tax actually paid at the regional level is fully credited against your Solidarity Tax liability
If your regional wealth tax is greater than your Solidarity Tax liability, you pay nothing extra
If your regional wealth tax is lower (for example, because your region applies a generous exemption), you pay the difference as Solidarity Tax

This means the Solidarity Tax is effectively relevant only for residents of regions that significantly reduce or eliminate wealth tax — particularly Madrid, which offered a 100% wealth tax rebate.

What Assets Are Counted

The asset base for the Solidarity Tax is essentially the same as for the Patrimonio: worldwide net assets including property, investment accounts, bank deposits, vehicles, jewellery, and other items of value, minus mortgages and other debts.

The main residence is excluded from the calculation up to €300,000.

Filing Deadline

The Solidarity Tax is declared alongside the Patrimonio in the annual tax campaign (typically June). Your Spanish gestor will handle this alongside your IRPF filing if your assets exceed the threshold.

Is the Solidarity Tax Permanent?

Despite the "temporary" in its name, the tax has been extended multiple times. Assume it will continue to apply for the foreseeable future if your assets are above €3 million. Planning around this tax is relevant if you are considering relocating large asset bases to Spain.

Questions about wealth tax or the solidarity tax as an NLV holder? My Spanish NLV can connect you with specialist tax advisers experienced in high-net-worth Spanish residency planning.

Frequently Asked Questions

How much does insurance typically cost for NLV applicants?

Costs vary widely depending on age, coverage level, and provider. Expect €600–€2,500 annually. Younger applicants and those choosing basic plans pay less; older applicants and comprehensive plans cost more. Many insurers offer discounts for annual payment or online enrollment.

Can I use travel insurance instead of health insurance for my NLV visa?

No. Travel insurance and health insurance are distinct. Consulates require a health insurance policy (seguro de salud) that covers your entire stay in Spain. Travel insurance does not meet NLV requirements and will not be accepted.

What if I have a pre-existing condition?

Many Spanish insurers do not exclude pre-existing conditions, or cover them after a waiting period (typically 12 months). An insurance broker can identify plans that suit your medical history and ensure your condition is covered from day one if possible.

Do I need a broker, or can I arrange insurance myself?

You can arrange insurance independently, but brokers add significant value. They navigate the complexity, compare multiple providers, ensure compliance with consulate requirements, and often negotiate better rates. For complex health situations, broker assistance is worth the investment.

What happens to my insurance when I renew my NLV?

You must renew your insurance policy when you renew your NLV. Plan ahead so there are no gaps in coverage. Most insurers offer easy annual renewal, often with loyalty discounts. Build renewal into your visa renewal timeline at least 2-3 months in advance.

Can I switch insurance providers if I'm unhappy?

Yes, you can switch providers, but timing matters. Confirm that any new policy meets consulate requirements and arrange overlap coverage so there are no gaps. Your broker can handle the transition smoothly and ensure continuous compliance.

Do I pay Spanish tax on my foreign income as an NLV holder?

Yes—once you become a Spanish resident (which NLV grants), you're subject to Spanish income tax on worldwide income. This includes foreign pensions, investments, rental income, and business income. You must file a Spanish tax return (declaración de la renta) annually. Double-tax treaties between Spain and your home country typically prevent paying tax twice.

How does Spanish tax work for UK pensions?

UK pensions are taxed in Spain as ordinary income at progressive rates (19–45% depending on amount). Spain and the UK have a tax treaty that typically allows you to claim foreign tax credits if you've paid UK tax on the same income. Report your UK pension on your Spanish tax return (línea 100 in the self-assessment form).

What's the difference between Spanish tax residency and NLV residency?

NLV grants legal residency. Tax residency is triggered when you spend more than 183 days in Spain in a calendar year or have your primary residence there. Most NLV holders become tax residents, but not automatically—they become tax residents when they meet the 183-day threshold or establish primary residence. Clarify this with a Spanish accountant.

Do I need to file Spanish taxes even if I have no Spanish income?

If you're a Spanish tax resident with worldwide income, you must file a Spanish tax return even if all income is foreign. Failure to file can result in penalties. Work with a Spanish accountant or gestoría (tax administration firm) to ensure compliance—they typically charge €600–€1,500 annually for NLV holder returns.

Can I claim tax deductions on Spanish taxes?

Yes—certain deductions are available: work expenses (if self-employed), pension contributions, charitable donations, mortgage interest, and some professional expenses. The amount varies, and documentation is required. A gestoría can optimize deductions for your situation legally.

What happens if I don't file taxes on time?

Late filing results in penalties starting at 5% of taxes owed, escalating to 15% if you're late by over 3 months. Interest accrues daily. If the tax authorities suspect fraud rather than oversight, penalties and criminal charges are more severe. File on time or request an extension early—extensions are typically granted if requested.