Proposed new wealth tax for fortunes over 10 million euros

Automatic summary, not yet reviewed

1. The bill would create a direct, personal state tax on the ownership, possession, availability, enjoyment or use of assets and rights by individuals with large fortunes, defined as net assets minus charges and debts. It would complement the current Wealth Tax and would apply to individual fortunes starting at 10 million euros.
2. It would limit the exemption for shares and holdings to companies with fewer than 250 employees and annual turnover of no more than 50 million euros or annual balance sheet total of no more than 43 million euros. Only holdings in companies considered SMEs would be exempt.
3. It would raise the exempt minimum of the tax base to 1,000,000 euros and set an eight-bracket scale with marginal rates from 3.6% to 5%, applied to total assets, both exempt and non-exempt, after deducting allowable debts and charges.
4. It would set a combined cap on the tax plus income tax, ranging from 60% to 67% of the income tax bases depending on wealth level, with a maximum tax reduction of 70%. The tax would accrue on December 31 each year.
5. Non-residents would have to appoint a representative in Spain before the tax authorities when operating through a permanent establishment or when the authorities require it. Failing to do so would be a serious offense with a fixed fine of 3,000 euros, increased by 100% if repeated.
6. The state would handle the tax's management, assessment, collection, inspection and review. Anyone with tax due, or whose total assets exceed 10,000,000 euros, would have to file. The law would take effect on January 1 of the year after its approval and would replace the temporary solidarity tax on great fortunes.

Who it affects

• Individuals with large fortunes, starting at 10 million euros including exempt and non-exempt assets.: They would pay a new annual tax on their net assets, at rates from 3.6% to 5%.
• Non-residents with assets or rights in Spain.: They would pay only on assets located in Spain and would need to appoint a representative in Spain if the authorities require it.
• Holders of company shares and holdings.: Only holdings in SMEs would be exempt, under the proposed employee and revenue limits.
• Depositories or managers of non-residents' assets.: They would be jointly liable for the tax debt on the assets they manage.

Words worth knowing

Devengo (accrual)

The moment the tax is considered due, here December 31 each year.

Base imponible (tax base)

The amount the tax is calculated on, here the value of net assets.

Cuota íntegra (gross tax liability)

The result of applying the tax rate to the base, before deductions and caps.

Obligación real (real liability)

A mode in which a non-resident pays tax only on assets and rights held in Spain.

Autoliquidación (self-assessment)

A return the taxpayer fills out and files, calculating the amount owed themselves.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries