Spain will apply a new tax on large fortunes
It is complementary to the Wealth Tax, so the amount paid in Wealth is deducted from the quota to be paid
The temporary Solidarity Tax of Great Fortunes will be paid between July 1 and 31, as provided in the Order published this Monday in the Official State Gazette approving the 718 declaration model for this new tax.
In this way, the last regulatory process is completed to implement a tax whose objective is to tax with an additional fee the assets of individuals of an amount greater than three million euros.
The Order contemplates that the tax accrued as of December 31, 2022 will be paid between July 1 and 31 of this same year. This tax is complementary to the Wealth Tax, which is paid in its entirety by the autonomous communities. In this way, the amount paid for the Wealth Tax is deducted from the quota to be paid for the Solidarity Tax of Great Fortunes. In this way, paying taxes twice for the same patrimony and concept is avoided and, at the same time, the new tax guarantees that all the great wealth contributes to the maintenance of the welfare state, according to the Ministry of Finance.
With this tax, which will temporarily tax the years 2022 and 2023 to collect in 2023 and 2024, the focus is placed on those assets greater than three million euros so that they cannot be exempted by the bonuses of the regional governments in the Wealth Tax, as happens, for example, in the Community of Madrid.
The Order, which includes the recommendations and observations made by the Council of State, also determines the place and manner of filing the tax, which will be electronically, as well as the conditions and procedure for filing. The tax rate will be 1.7 % for assets between 3 and 5 million euros; 2.1 % for assets between 5 million and 10 million; and 3.5 % for assets of more than 10 million euros.
The Order published this Monday in the BOE allows the implementation of a tax figure included in a package of fiscal measures approved by the Government last year to allow a “fairer” distribution of the economic effects derived from the war in Ukraine. Thus, this tax measure for high net worth is complemented by a reduction in personal income tax for income of up to 21,000 euros, an amount equivalent to the median salary in Spain, which means that this reduction in personal income tax is already benefiting half of the country workers.
“In this way, the coherence of the Government’s fiscal policy is maintained, based on a fairer and more progressive tax system in which those who have more contribute more and the middle and working classes are protected with a strengthening of the welfare state,” defends in a statement the Ministry of Finance.
Source: dpa
(Reference image source: Eduardo Parra, Europa Press / dpa)
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