Spain's government to impose temporary wealth tax on assets over €3m

Spain's government said on 29 September in a ministerial statement that residents whose wealth exceeds €3m will be subject to a new asset tax in 2023 and 2024.

This follows the regional Andalusian Government's scrapping of wealth tax for its local residents and second homeowners in the region, which took effect from 21 September.

Regional governments in Spain do have federal style discretion over aspects of such areas as taxation which is why Andalucia's ruling party adopted to abolish its wealth tax locally.  

Finance minister María Jesús Montero said the temporary wealth tax would affect 23,000 people, or 0.1 % of taxpayers, calling it a "solidarity tax" which was forecast to raise €1.5bn as part of a tax raising package in a forthcoming Budget to ease hardship caused by high inflation. 

Residents with €3-5m will be taxed 1.7% on a sliding scale, with €5-10m of wealth paying 2.1% rate and those over €10m, the sum of 3.5%.