Spain will introduce a new property tax for wealthy citizens. It will affect 23 thousand people, or 0.1% of taxpayers.

What’s the deal? Spain’s coalition government has decided to levy a temporary wealth tax in 2023 and 2024. This law will affect those whose assets exceed €3 million.

How much would one have to pay? If the fortune is €3-5 million, a tax of 1.7% will have to be paid; if the fortune is €5-10 million — 2.1%; if the assets exceed €10 million, then the tax will be 3.5%. Such measures should bring the state €3.1 billion over the next two years.

Why is this necessary? To support the country’s budget because of rising inflation (last month the annual rate rose to 10.5%) and rising energy prices. And also as solidarity with people with lower incomes — the government promises that they will be helped with the money received from this tax. Note that the average annual salary in Spain is €21,000.

What else? The Spanish government also plans to increase the rate of income tax. For those who earn over €200 thousand, it will rise from 26 to 27 percent, for income over €300 thousand — the rate will be 28%. For those whose annual salary is less than € 21,000, the income tax will be reduced.

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