Wealth Tax Across Europe: A Country-By-Country Breakdown
If you're living in Europe, or planning to relocate, understanding each country’s wealth tax rules is key to safeguarding assets and planning effectively.
From France’s property-focused Impôt sur la Fortune Immobilière (IFI) to Spain’s regional wealth tax rules and Switzerland’s canton-based rates, each country takes a different approach to taxing assets, so in this article we break down the current wealth tax landscape in Europe.
Wealth Taxes in Europe
Wealth tax is charged annually on the total value of your net assets, distinguishing it from income or capital gains tax, which are event-driven. It can encompass everything from real estate, business interests and investments to savings, fine art, and other valuable personal possessions. For high-net-worth individuals, the impact of such a tax can be considerable.
Some countries, including France and Spain, assess wealth tax on residents’ worldwide holdings, whereas others target assets located solely within their borders. While double taxation treaties can alleviate some of this burden, they seldom eliminate it entirely. Countries without a formal wealth tax may use alternative levies such as those on property or high-value securities accounts that function in a similar way. For British expats, appreciating these subtleties is essential for prudent and effective wealth planning.
Spain
Spain imposes wealth tax on residents’ worldwide assets and on non-residents’ Spanish assets. In most regions, the allowance is €700,000 per person, plus a €300,000 primary residence deduction. Since 2024, the Balearic Islands have increased their allowance to €3,000,000 (+€300,000 for the main home). Rates range from 0.2% to 3.5%, set by each autonomous community, with Madrid, Andalucía, Extremadura, and Cantabria offering full relief (100%) from the regional wealth tax.
Additionally, a Solidarity Tax applies to individuals with net wealth above €3 million, regardless of any regional wealth tax relief, at rates between 1.7% and 3.5%. In regions where wealth tax is charged, the amount paid offsets the Solidarity Tax due; in regions with full relief, the Solidarity Tax is payable in full. Wealth is assessed annually as of 31 December each year. Thresholds and rates are subject to annual review at the national level, and reliefs can be amended or withdrawn.
What is the Solidarity Tax?
Spain’s Solidarity Tax is an additional levy on net wealth above specific thresholds, intended to operate alongside the regional wealth tax system. It applies on a progressive scale and is collected at the national level, meaning it is still payable in regions with full wealth tax relief, such as Madrid.
Information correct as of 12 August 2025, based on official Spanish government sources. Thresholds, rates, and rules are subject to change.
France
France’s wealth tax is focused solely on real estate, following the 2018 replacement of the broad-based Impôt de Solidarité sur la Fortune (ISF) with the Impôt sur la Fortune Immobilière (IFI). French tax residents are liable for IFI on their worldwide real estate holdings, while non-residents are taxed only on property located in France. The IFI applies when the net taxable value of real estate exceeds €1.3 million (current as of August 2025). Rates are progressive, starting at 0.5% and increasing through several bands to a maximum of 1.5% on the portion above €10 million (service-public.fr). Eligible debts, such as mortgages or renovation loans, linked to the acquisition, improvement, or maintenance of property can reduce the taxable base, and professional-use properties may be exempt. Valuation is based on the market value of property as at 1 January each year.
Information correct as of 12 August 2025, based on official French government sources. Thresholds, rates, and rules are subject to change.
Switzerland
Wealth tax in Switzerland is levied at the cantonal and communal levels, with no federal wealth tax. Thresholds and rates vary significantly by canton. As of August 2025, exemptions for individuals typically start between CHF 77,000 and CHF 120,000, depending on the canton (e.g., ~CHF 83,000 in Geneva, ~CHF 77,000 in Vaud). Rates are progressive and generally range from 0.1% to around 1% on net assets above the exemption. Residents are taxed on their worldwide assets, excluding foreign real estate and permanent establishments abroad, while non-residents are taxed only on Swiss-situated assets.
What is the forfait system?
The forfait (lump-sum taxation) is a special arrangement available in some cantons to eligible foreign nationals who are not employed or self-employed in Switzerland. Instead of being taxed on total income and wealth, the calculation is based on annual living expenses. Each canton sets its own criteria, minimum taxable base, and approval process. This system is not available to Swiss citizens or to foreign nationals already taxed under the ordinary Swiss income and wealth tax regime. Eligibility and terms must be confirmed with the relevant cantonal tax authority (estv.admin.ch).
Information correct as of 12 August 2025, based on official Swiss government sources (estv.admin.ch). Thresholds, rates, and rules are subject to change.
Italy
Italy does not impose a general wealth tax, but it applies two specific annual charges on assets held abroad by residents:
- IVIE (Imposta sul Valore degli Immobili situati all’Estero): charged at 1.06% of the value of foreign real estate, with a reduced 0.4% rate for qualifying main residences (current as of August 2025).
- IVAFE (Imposta sul Valore delle Attività Finanziarie detenute all’Estero): applied at 0.2% on foreign financial assets, rising to 0.4% if the assets are held in jurisdictions with preferential tax regimes. “Preferential tax regimes” are defined by Italian law and may be updated; the official list is maintained by the Italian Ministry of Economy and Finance.
- For foreign bank or savings accounts, a flat annual fee of €34.20 per account applies when the average balance exceeds €5,000.
These charges are assessed annually on the value of assets held outside Italy. Certain exemptions are available, and individuals temporarily returning to Italy may qualify for reduced liability under specific regulations.
Information correct as of August 2025, based on official Italian government sources (Ministry of Economy and Finance). Thresholds, rates, and rules are subject to change.
Belgium
Belgium does not levy a general wealth tax, but it does apply an annual tax on securities accounts:
- The tax rate is 0.15%, applied to securities account holdings that exceed €1,000,000 per account-holder. The tax amount is capped at 10% of the difference between the total value and the €1,000,000 threshold, except when the account value exceeds ~€1,015,228 - after which the cap no longer applies.
This levy can be significant for high-value portfolios and applies to both resident and certain non-resident account holders with Belgian securities accounts.
Information correct as of August 2025, based on official Belgian government sources. Thresholds, rates, and rules are subject to change.
Norway
Norway imposes wealth tax on residents’ global net assets and on Norway-situated assets for non-residents. As of August 2025, the individual threshold is NOK 1.76 million, with a combined rate of 1.0% on wealth up to NOK 20.7 million (split between 0.525% municipal and 0.475% state), rising to 1.1% for amounts above that threshold, as set by the Norwegian Tax Administration. Valuation discounts are applied automatically to certain assets, including primary residences and business holdings. Residency status at the end of the tax year is critical in determining liability, and the timing of relocation can affect exposure.
Information correct as of August 2025, based on official Norwegian government sources. Thresholds, rates, and rules are subject to change.
Netherlands
The Netherlands taxes savings and investments in 'Box 3', which is the part of the Dutch tax system for income from assets such as bank savings, shares, investment funds and certain property that is not your main home. Under the Bridging Act rules that apply through 2025, tax is charged on an assumed (notional) return rather than the actual income or gains you receive. These rules remain subject to ongoing legal challenges, and further changes to Box 3 taxation may be implemented before 2026.
For the 2025 provisional assessment, the Tax Administration calculates Box 3 income by category, such as savings, investments and debts, then applies the Box 3 rate to the calculated return.
Taxpayers who receive a letter about reporting actual return (werkelijk rendement) can submit it during the 2025 window set by the Tax Administration. This process reflects ongoing Box 3 legal updates.
Information correct as of August 2025, based on official Dutch government sources (Belastingdienst). Thresholds, rates, and rules are subject to change.
Other European Countries Without Formal Wealth Tax
Several European countries, including Germany, Austria, Portugal, Malta, the United Kingdom, Ireland, Denmark and others, do not impose a dedicated wealth tax.
It is important to note that “no wealth tax” does not mean “no taxation on assets.” These countries still levy taxes that can affect long-term wealth, such as capital gains and dividend taxes, inheritance and gift taxes, and property-related levies. For example, Denmark abandoned its broad wealth tax in 1997 but continues to tax the imputed rental value for owner-occupied homes, which is a form of asset-based taxation, and also imposes taxes on pension assets.
Ireland and Germany repealed their wealth taxes (Ireland in 1978, Germany in 1997) but still impose capital gains and inheritance taxes. Across EU countries, only Norway, Spain and Switzerland currently levy a net wealth tax, while other asset-based taxes, such as France’s real estate wealth tax, may still apply in some jurisdictions.
The political environment can also shift. While wealth taxes are absent in these countries at present, proposals occasionally resurface, so expats and investors need to remain informed about evolving tax developments. To receive our regular bulletin providing the latest news and insights, complete the short form at the foot of this page.
Strategic Considerations for British Expats
Minimising wealth tax exposure often involves a multi-faceted approach that takes into account residency status, the location and legal structure of assets, and the interaction of multiple tax regimes. Moving to a jurisdiction without a wealth tax before the end of the relevant tax year may alter liability, while restructuring ownership through trusts or corporate entities can, in some cases, lead to greater efficiency. The most suitable approach will vary according to individual circumstances and should be informed by qualified, cross-border advice.
Concerned about Wealth Tax?
Let us help you protect your assets
Europe’s wealth tax rules are complex, particularly for high-net-worth British expats with cross-border holdings. As Forth Capital’s in-house European tax specialist, I can provide you with tailored, compliant strategies to help you manage your position effectively. This includes assessing residency status, reviewing asset structures, and identifying options within the relevant tax frameworks.
To schedule an initial consultation,
contact me today.
Mark Routen
Chartered Tax Advisor
As Forth Capital's Head of Tax, I offer tailored tax planning advice to high net worth international private clients. I help them understand their options, optimise their cross-border arrangements, and create a robust plan for their future. To schedule an initial consultation, contact me today.
FAQs
Yes, this can happen when two countries both claim the right to tax the same assets. For instance, you might be considered tax resident in one country while also owning property in another, with each jurisdiction applying its own wealth tax. Fortunately, many European countries have double taxation treaties designed to reduce or eliminate this problem. These treaties may grant a tax credit in one country for tax paid in the other, or they may assign taxing rights exclusively to one jurisdiction. Understanding how these treaties apply to your specific portfolio is essential, and in some cases proactive restructuring of asset ownership can prevent double charges entirely.
In many countries, yes. Even if you are not a resident, non-resident wealth tax can apply to assets located within the jurisdiction - and real estate is one of the most common triggers. For example, a British expat living in Portugal but owning a holiday property in France could be liable for France’s Impôt sur la Fortune Immobilière (IFI) solely on that property. This applies whether the property is rented or used exclusively for personal holidays, and in most cases there is no small-use exemption.
Valuation rules vary between countries, but most wealth taxes are based on the market value of assets as at a fixed date each year - often 31 December. The timing of valuations can therefore have a significant impact on liability. Some jurisdictions, such as Spain, may use cadastral values for real estate (which can be lower than market value), while others apply discounts for certain asset classes such as business ownership or agricultural land. Accurate and compliant valuation is one of the most effective tools for reducing exposure.
This depends entirely on the jurisdiction and the pension structure. Some countries include pensions in the wealth tax base if they are investment-based and accessible, while others exclude them entirely, recognising them as retirement income rather than taxable wealth. British expats with SIPPs or QROPS should pay particular attention to local rules, as these may be treated differently from native pension schemes. In some cases, careful structuring or timing of transfers can help protect pension assets from wealth tax.
A change of residence can indeed reduce or eliminate wealth tax, but the timing is critical. Most countries determine tax residency based on the number of days spent there or the location of your primary home, so leaving after the tax year closes may still leave you liable for that year’s charge. Similarly, establishing residency in a new jurisdiction partway through the year can create a situation where you are taxed in both countries. A carefully planned and documented relocation strategy is essential for high-net-worth individuals to avoid costly overlaps.
Currently, the United Kingdom does not impose a formal wealth tax. However, this does not mean that wealthy individuals are free from asset-related taxation. The UK applies inheritance tax, capital gains tax, and various property-related taxes which can have a similar effect on long-term wealth. In recent years, there has been political debate about introducing a wealth tax, so British expats should monitor developments, particularly if they are considering a return to the UK in future.
Several European nations, including Germany, Austria, Portugal, Malta, and the UK, currently do not impose a wealth tax. These countries can be attractive destinations for high-net-worth individuals seeking to minimise recurring taxation on assets. However, the absence of a wealth tax does not necessarily mean a low overall tax burden — other taxes, such as high property taxes or capital gains tax, may still apply. Moreover, political sentiment can change, and what is true today may not be the case in five or ten years. Strategic planning should therefore consider both current laws and potential future reforms.
- This communication is for information purposes only and does not constitute financial, legal, or tax advice.
- All content is based on current UK legislation and is subject to change. All planning arrangements should be regularly reviewed in consideration of legislative updates.
- Pension regulation and tax treatment vary between jurisdictions. Any reference to UK or international pension rules is portrayed in general terms and is not intended to reflect individual circumstances. Any examples provided are hypothetical and for illustrative purpose only. Outcomes will differ based on individual circumstances and local law and regulation.
- Pension transfers carry specific risks and may not be appropriate for everyone. The suitability of any transfers or investments should be assessed on an individual basis.
- Past performance is not a reliable indicator of future results. The value of investments can fall and rise, and you may not get back the amount originally invested.
Last updated 20 August 2025
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