> The 60/20 Rule is a lesser-known provision that can help limit your total Wealth and Solidarity Tax liability. Under this rule, your combined tax on income (I

> The 60/20 Rule is a lesser-known provision that can help limit your total Wealth and Solidarity Tax liability. Under this rule, your combined tax on income (IRPF) and Wealth/Solidarity Tax cannot exceed 60% of your taxable income. However, the tax cannot be reduced below 20% of the original amount. Seems the effective wealth tax rate for single-digit millionaires is closer to 0.34% than 1.7% in practice. ref: https://www.skyboundwealth.com/news-and-insights/spanish-wealth-tax-solidarity-tax-what-hnw-residents-and-expats-need-to-know-in-2025 https://www.skyboundwealth.com/news-and-insights/spanish-wea... (Also worth mentioning since some commenters seem to have missed it: Spain has two wealth taxes, the older "wealth tax" and the recent "solidarity tax". The older wealth tax had been functionally abolished in several regions, and the new solidarity tax effectively replaced it, with higher asset thresholds.)