Wealth Tax

For UK and US expatriates living across Europe, understanding how your wealth is taxed is a vital part of protecting your assets and planning your financial future.

While income tax and inheritance tax are familiar to most, wealth tax — a levy on the total value of your assets — is less understood. Yet for expatriates living in certain European countries, wealth tax can have a significant impact on investment growth, property ownership, and long-term financial planning.

At Blacktower Financial Management, we’ve been advising expatriates since 1986, helping clients navigate the complex web of cross-border taxation, wealth structuring, and estate planning. Here, we break down how wealth tax works across Europe in 2025, which countries apply it, and how to plan strategically to reduce your exposure.

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1️⃣ What Is Wealth Tax?

Wealth tax is an annual tax levied on an individual’s net worth — the total value of their assets minus any debts or liabilities.

Taxable assets typically include:

• Real estate (property and land)
• Bank savings and investment portfolios
• Shares, bonds, and funds
• Jewellery, vehicles, and luxury assets (in some countries)
• Certain business interests

The thresholds, rates, and exemptions vary widely between countries. Some nations, like Spain and Norway, have a broad-based wealth tax, while others — such as Portugal and France — apply wealth taxes specifically to property or high-value real estate.

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2️⃣ Countries in Europe That Apply a Wealth Tax (2025)

As of 2025, the following European countries currently apply some form of wealth tax:

Country	Type of Wealth Tax	Who It Applies To	Typical Rates	Notes
Spain	General Wealth Tax (Impuesto sobre el Patrimonio)	Residents and non-residents with Spanish assets	0.2% – 3.5%	Exemption thresholds vary by region (€700,000–€1 million).
France	Real Estate Wealth Tax (Impôt sur la Fortune Immobilière – IFI)	Residents and non-residents with French property	0.5% – 1.5%	Applies only to real estate assets over €1.3 million.
Norway	General Wealth Tax	Residents and some non-residents	0.85% (combined state and municipal)	Includes most assets; debts deductible.
Switzerland	Cantonal Wealth Tax	Residents only	0.1% – 1%	Rates and thresholds vary by canton.
Belgium	Securities Account Tax	Residents and some non-residents	0.15%	Applies to securities accounts exceeding €1 million.
Netherlands	“Box 3” Investment Tax	Residents and non-residents with Dutch assets	Approx. 1–2% (based on assumed returns)	Effectively functions as a wealth tax on investments.

Although other European countries — such as Portugal, Italy, and Germany — do not currently have a formal wealth tax, they often apply property, solidarity, or high-income surtaxes that serve a similar purpose.

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3️⃣ Country-by-Country Overview

🇪🇸 Spain: The Most Comprehensive Wealth Tax in Europe

Spain applies a progressive national wealth tax on worldwide assets for residents and Spanish assets for non-residents.

• Exemption: €700,000 (per person) plus €300,000 for your main residence.
• Rates: Between 0.2% and 3.5%, depending on the region.
• Regional Variation: Regions such as Madrid currently offer a 100% exemption, while Catalonia and Andalusia levy the tax in full.

Spain also introduced a Solidarity Tax in 2023 on wealth over €3 million. Originally temporary, it continues into 2025 while the government considers making it permanent.

For expatriates with property, pensions, or investments in Spain, structured wealth management and residency planning are essential to minimise exposure.

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🇫🇷 France: From General Wealth Tax to Property-Based IFI

France abolished its general wealth tax in 2018, replacing it with the Impôt sur la Fortune Immobilière (IFI) — a tax limited to real estate holdings.

• Threshold: Net property value exceeding €1.3 million.
• Rates: Progressive from 0.5% to 1.5%.
• Scope: Applies to French residents’ worldwide property and non-residents’ French property only.

Financial assets such as shares, bonds, or pensions are exempt, making IFI less burdensome for expatriates with diversified investments.

Nevertheless, for expats with French property — especially second homes — it’s important to evaluate your exposure and explore ownership structures that align with your estate plan.

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🇳🇴 Norway: A Broad and Transparent Wealth Tax

Norway maintains one of the most comprehensive wealth tax systems in Europe, levied at both state and municipal levels.

• Threshold: NOK 1.7 million (around €145,000).
• Rate: Combined effective rate of 0.85%.
• Scope: Includes property, shares, and investments globally for residents.

While Norway’s overall tax burden is high, its wealth tax supports a robust welfare system — and remains a political talking point heading into the 2025 elections.

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🇨🇭 Switzerland: Wealth Tax by Canton

Each Swiss canton applies its own annual wealth tax.

• Thresholds: Vary by canton (e.g., CHF 100,000–CHF 500,000).
• Rates: Typically between 0.1% and 1% of net assets.
• Scope: Based on worldwide assets for residents; Swiss assets only for non-residents.

However, Switzerland’s low income tax rates and high exemption thresholds often offset the impact, making it an attractive destination for high-net-worth expatriates.

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🇧🇪 Belgium: A Narrow “Securities Tax”

Belgium’s wealth tax, reintroduced in 2021, is limited in scope.

• Applies to: Securities accounts with an average value over €1 million.
• Rate: Flat 0.15%.
• Scope: Includes Belgian and foreign securities accounts held by Belgian residents.

It’s relatively mild, but expatriates with substantial investment portfolios should still review their holdings for compliance.

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🇳🇱 Netherlands: “Box 3” Wealth-Based Income Tax

Rather than a traditional wealth tax, the Netherlands uses a “Box 3” tax system, where investment and savings income are taxed based on deemed returns.

• Threshold: €57,000 (per person).
• Effective Rate: Around 1%–2%, depending on the value of assets.
• Scope: Applies to residents’ worldwide assets and non-residents’ Dutch assets.

While controversial — and under reform — the Box 3 system effectively operates as an annual tax on wealth, regardless of actual returns.

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4️⃣ Countries Without a Wealth Tax

Some of Europe’s most popular expat destinations — including Portugal, Germany, Italy, and the UK — do not currently levy a formal wealth tax.

However:

• Portugal applies property transfer and municipal taxes (IMT and IMI), and recent policy debates suggest a targeted tax on non-resident property buyers could emerge.
• Germany applies income and inheritance tax but no wealth tax since 1997.
• The UK’s Inheritance Tax (IHT) still functions as a form of wealth tax on estates.

For expatriates living in these countries, wealth preservation remains just as important — focusing instead on tax-efficient investment vehicles and estate planning.

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5️⃣ How to Minimise Wealth Tax Exposure

While wealth tax cannot be fully avoided if you reside in a country that levies it, careful structuring can significantly reduce its impact.

✅ Strategic Planning Options

• Diversify investments into non-property assets where possible.
• Use Assurance Vie policies (France, Portugal, Spain) to defer or reduce taxation.
• Distribute wealth between spouses or family members to make use of individual exemptions.
• Review residency status to ensure you’re taxed where most favourable.
• Consider lifetime gifting or trust structures for long-term estate efficiency.

Blacktower advisers coordinate with local tax and legal professionals to help expatriates balance compliance, growth, and protection — ensuring your wealth is preserved for the next generation.

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6️⃣ How Blacktower Can Help

At Blacktower Financial Management, we provide:

• Expert advice on cross-border tax planning and wealth structuring.
• Strategic guidance on international investments, pensions, and life assurance.
• Partnerships with local specialists to ensure compliance in your country of residence.

Whether you’re living in Spain, France, Portugal, Germany, or beyond, we’ll help you understand how wealth tax fits into your broader financial picture — and create a plan to minimise liabilities while maximising opportunity.

📞 Book your complimentary consultation today
Speak to a Blacktower adviser to explore how we can help you manage your wealth effectively across borders.