The Supreme Court extends the right to apply the joint limit on Wealth Tax and Personal Income Tax to non-residents

In its judgments of 29 October and 3 November 2025, the Supreme Court established doctrine eliminating the historical discrimination that existed between residents and non-residents with regard to the application of the joint limit with personal income tax existing in wealth tax.

his limit acts as a kind of tax shield, preventing the sum of the total income tax and wealth tax liability from exceeding 60% of the income tax base. If it exceeds this limit, the wealth tax liability is reduced to comply with the cap, with a maximum reduction of 80%.

Until now, this rule only applied to tax residents in Spain. However, the Supreme Court considers that this disparity in treatment based solely on the taxpayer’s residence infringes one of the fundamental pillars of European Union law, namely the free movement of capital.

Consequently, as from now, non-residents will also be able to apply the combined 60% limit in their Wealth Tax returns.

This same approach should also be extended to the limit established in the Temporary Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad de las Grandes Fortunas) , given that its regulation is identical to that of Wealth Tax and is complementary to it.

Furthermore, these judgments may open the door for non-resident taxpayers who have filed wealth tax returns in the last four years to request the rectification of their self-assessments.