Spain: Temporary solidarity tax on large fortunes

Key aspects of Draft Order on tax Form 718 for temporary solidarity tax on large fortunes

Key aspects of Draft Order on tax Form 718 for temporary solidarity tax on large fortunes

The Draft Order on tax Form 718 for the temporary solidarity tax on large fortunes (ITSGF) is now subject to the period for comments and public consultation until 15 March 2023 and any contributions may be sent by email to:

This tax, which is payable by individuals with net wealth exceeding €3 million, became chargeable for the first time on 31 December 2022, hence the need to approve the relevant self-assessment form. The ITSGF will be payable by Spanish residents in respect of their worldwide wealth, and by non-residents in respect of any wealth located, or related rights that may be exercised or fulfilled, in Spain. Law 38/2022 of 27 December 2022 introduced the temporary solidarity tax on large fortunes. Read TaxNewsFlash

Key aspects of the Draft Order include the following:

  • The filing period for the tax that became chargeable on 31 December 2022 runs from 1 to 31 July 2023. Taxpayers will thus be able to deduct any amounts paid in respect of wealth tax.
  • Taxpayers wishing to pay the amount due by direct debit must file their returns by 26 July 2023.
  • The return will be available in electronic format only and must be filed and paid online.
  • As stated in Form 718, the wealth tax payable to be taken into account for the purposes of calculating the combined limit for personal income tax, wealth tax and the tax on large fortunes is that stated in box [040] of the wealth tax return, i.e., the wealth tax payable before deducting any applicable relief (the gross tax payable).

KPMG observation

Taxpayers resident in Madrid or Andalusia, whose effective wealth tax charge amounts to zero, can perform the relevant calculation using the amount of the gross wealth tax charge that they would have had to pay in the absence of the 100% regional relief.

If Form 718 is ultimately approved, it may affect the calculation of this new tax for residents in Madrid and Andalusia, when wealth tax enjoys 100% relief and, albeit to a lesser extent, in Galicia, when wealth tax is subject to partial relief.

The Order is set to enter into force on the day after the date of its publication and will be applicable for the first time to the tax return Form 718 for 2022.

Read a March 2023 report [PDF 177 KB] prepared by the KPMG member firm in Spain

For further information, contact a KPMG professional in Spain:

Jose Luis Lopez Hermida |

Xavier Aixela |


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