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Spain’s wealth tax brings first results

Spain’s wealth tax brings first results

Spain’s new wealth tax, introduced to reduce the cost of living for ordinary Spaniards amid high inflation, has already raised €632 million this year.

Source:https://www.zawya.com/en/world/uk-and-europe/spains-new-wealth-tax-raises-676mln-euros-exccm3ee

At the end of 2022, the left-wing government introduced a temporary solidarity tax for high net worth owners for 2023 and 2024, effectively ending regional exemptions from the existing wealth tax like those in Madrid, which rivals Miami in attracting wealthy Latin American taxpayers.

The tax applies to wealth exceeding €3 million and can be as high as 3.5% depending on the size of the individual’s wealth.

In total, 12,010 wealthy people paid the new tax, representing 0.1% of all taxpayers in Spain, mainly in Madrid, Andalusia and Galicia.

According to government forecasts, there is a potential opportunity to collect 1.5 billion euros in tax on large fortunes if extended to all regions.

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