The Spanish General State Budget: new Solidarity Tax on Large Fortunes

This tax will enter into force at the end of this year, with the aim that the first payment will be made in June 2023 on the assets declared in 2022. It has collection effects for the years 2023 and 2024.

This tax will be levied on taxpayers with a net worth of more than 3 million euros. It includes real estate, shares or business shares, life insurance, assets and rights of economic activities, permanent or temporary incomes, luxury goods, cars, boats, aircraft, antiques and works of art, among other items.

The regulation will apply a progressive tax rate according to the following brackets:

• A first rate of 1.7% for net assets above EUR 3 million and up to EUR 5 million;
• 2.1% for net assets above EUR 5 million up to EUR 10 million; and
• A marginal rate of 3.5% for net assets above EUR 10 million.

In order to avoid double taxation, the amount payable as a result of the Wealth Tax applicable in each Regional Community may be deducted from the mentioned tax.

This means that in those Regional Communities where there are full Wealth Tax bonifications, as is the case in Madrid and Andalusia with a 100% bonus for their residents, the latter will not pay Wealth Tax, but those who have a net wealth of more than 3 million euros will have to pay this new Solidarity Tax on Large Fortunes.