Spain advances entry into force of the tax on large fortunes

The Government of Spain has decided to bring forward for this year the entry into force of the tax on large fortunes that it planned to apply from next year and until 2024

The Ministry of Finance has advanced to 2022 the entry into force of the ‘solidarity’ tax for large fortunes, with which the Government hopes to raise 3,000 million in two years, sources from the Department led by María Jesús Montero have confirmed to Europa Press. Until now, the Government had ensured that the tax would come into force in 2023 and would extend until 2024.

With this change, the new tax will be in force during the years 2022 and 2023 so that the collection takes effect in 2023 and 2024, coinciding with the liquidation of said tax. After these two years, the Government will evaluate whether to maintain it or not.

The Independent Authority for Fiscal Responsibility (AIReF) warned yesterday that the tax would have to come into force this year, given that the budget plan sent by the Government to Brussels a few weeks ago states that the collection of this new tax will already have in 2023. Specifically, AIReF forecasts a collection for next year of 1,270 million euros and 1,370 million for 2024.

 

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The intention of the Treasury is to approve, therefore, the new tax on large fortunes before December 31 of this year so that it can come into force in 2022, and one of the options that it is considering is to introduce it as an amendment to the bill that Congress is currently processing to tax extraordinary income to energy companies and financial entities.

The new tax on large fortunes will tax net wealth over three million euros, with three brackets: 1.7 % on assets between 3 and 5 million; 2.1 % to assets of between 5 and 10 million, and 3.5 % from 10 million.

With this new tax, which will allow deducting 100 % of what is paid for the Wealth Tax managed by the Autonomous Communities, the Government expects to collect 3,000 million euros in 2023 and 2024. However, AIReF estimates that the collection will be somewhat lower, about 1.27 billion in 2023 and 1.37 billion in 2024.

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Source: dpa

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