Valencian Community Act number 5/2025, of May 30, 2025, establishes that, as of December 31, 2025 (inclusive), all residents in the Valencian Community who are subject to the Wealth Tax under personal liability will have an exempt minimum of €1,000,000. This means they will not be taxed on the first €1,000,000 of their wealth.
This new threshold will already apply to the wealth tax corresponding to the 2025 fiscal year and subsequent years.
Until that date, the exempt minimum in Valencia was €500,000, although it was raised to €1,000,000 for persons with disabilities.
With this change, the treatment is standardized, and the difference that previously existed between taxpayers with and without disabilities disappears.
We would like to remind that the wealth tax is an individual tax, and therefore, in the case of a married couple, the €1,000,000 limit applies to each spouse. Likewise, we emphasize that it is important to know whether the couple is married under a community property or equitable distribution regime in order to determine to whom the value of the assets forming part of the family estate should be attributed.
With this increase in the exempt threshold, the Valencian Community improves upon the general threshold still in place in some autonomous communities (€700,000), although it remains well below that of other regions such as Madrid, Andalusia, Murcia, or Cantabria, which have raised the exemption limit up to the amount at which the Solidarity Tax on Large Fortunes becomes payable (€3.7 million).
It was surprising that the Valencian Community maintained such a low threshold for the wealth tax, especially considering that it is governed by the Partido Popular, which supports the elimination of this tax. We understand that the decision not to raise the threshold in the same way as other autonomous communities governed by the same political party is due to the delicate political situation currently being experienced in Valencia, with a minority government and considerable credibility and budgetary issues following the disastrous floods caused by the DANA in 2024.
