Solidarity tax on wealth: what is this new tax that has appeared in Spain?

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“A dose of social justice”. This is the will of the government across the Pyrenees according to Budget Minister Maria Jesus Montero, after Spain announced a tax reform including, among other things, a new solidarity tax. According to information from Les Échos, this is an exceptional contribution of solidarity by the greatest heritages. And this, for two years, in 2023 and 2024.

This new wealth tax concerns approximately 23,000 people representing net assets of more than 3 million euros. This tax is therefore imposed on 0.1% of taxpayers. “This should bring in 3.144 billion over two years, with the objective of helping to finance the shock absorber mechanisms deployed to mitigate the effects of the energy crisis and inflation which should reach around 9% for the whole of the world. ‘year 2022’, estimates the daily economic and financial news.

The tax reform does not only involve a tax on the country’s wealthiest people, but also a reduction in income tax for people who earn less than 21,000 euros per year. A gesture that should allow them to save nearly two billion euros in two years.

Exceptional and solidarity measures which are also accompanied by tax assistance for the self-employed, small businesses, and the elimination of tax loopholes which have hitherto favored large companies.

“Fiscal policy should not respond to whims but rather adapt to reality for a fairer distribution of burdens”, declared the Spanish Budget Minister.