Minimum twelve European countries are already applying some form of special banking tax. It’s collected in various ways. The European Banking Authority, often called the EBA, was included in a risk assessment of the continent’s financial system last Tuesday. The document shows a broad sample of states where banks face specific taxation. In addition to Spain, the list includes Sweden, Denmark, the Netherlands, Belgium, Italy, Hungary, Austria, Romania, the Czech Republic, Poland, and Lithuania. It notes that other countries such as Ireland are not on the list. The speaker announced that next year taxes on organizations that benefited from public aid during the last financial crisis would rise.
Spain’s chaired community organizer José Manuel Campa emphasized that tax collection on banks in Europe rose by 30% between June 2022 and 2023. On one hand, this increase reflects stronger corporate tax receipts driven by higher profits in the sector, aided by rising interest rates, which explains about 91% of the jump. On the other hand, it responds to the presence of other taxes and duties, including taxes on extraordinary profits tied to the sector’s substantial gains.
Echoing the stance of the European Central Bank, the EBA warned that higher tax levels for banks can affect profitability. All these measures must be evaluated from a cost‑benefit perspective. In particular, when new taxes are introduced, it is important to determine whether some features amount to a tax with greater uncertainty for the banking sector, as the bank’s revenue base faces volatility.
Spain’s tax policy appears as a public‑property benefit of a non‑tax nature, attempting to overcome legal hurdles. The 4.8% levy on interest and commission income in Spain drew from banks with income from these two items of 800 million euros or more in 2019. The plan was intended to be temporary based on 2022 and 2023 results, with payments scheduled for February and September 2023 and 2024. However, the PSOE and allied groups included in government agreements to readapt and sustain the banking sector, along with energy companies, to continue contributing to tax justice and the upkeep of the welfare state.
Calviño–Díaz tensions
In a recent interview on Antena 3, the economics vice president Nadia Calviño reviewed timelines and parameters for the evolving scenario. She suggested that there may not be a rapid rise in interest rates, with Euribor—the benchmark rate affecting bank earnings—lagging downward as markets anticipate shifts in the European Central Bank’s policy rate.
Calviño noted that it remains to be seen whether the two taxes are necessary and whether adjustments are warranted. She stated that the two taxes would be analyzed and, if kept, would be evaluated against future conditions to preserve their positive impact on revenues and the broader economy.
Second vice president Yolanda Díaz responded in Bilbao. While Calviño did not directly call for eliminating the measures, Díaz—leader of Sumar—rejected the idea. She asserted that existing agreements should be honored and that the most prosperous sectors, including energy companies and financial institutions, must contribute more. She emphasized that pre‑tax profits offer a clear signal of where contributions should come from, highlighting that a pact between PSOE and Sumar must be fulfilled in moments of unprecedented inflation. The stance was clear: those with the greatest capacity to contribute should do so, in line with the country’s agreed approach.
What are the special taxes imposed on banks in 12 European countries?
Sweden: For banks with assets over 15 billion euros, a special tax ranging from 5 to 6 basis points on liabilities.
Denmark: Corporate tax rate for banks increased up to 26%.
Netherlands: A 30% rise in a special bank tax and a new levy on share buybacks for all publicly traded firms.
Belgium: Higher contributions to the Deposit Guarantee Fund and removal of the tax deduction.
Spain: A 4.8% tax on the interest margin and on commissions.
Italy: A 40% tax on the interest margin difference between 2021 and 2023; it may be replaced by a capital increase of two and a half times the amount payable to the State, provided it is not used to pay dividends.
Hungary: Tax at 0.21% of total assets, excluding interbank loans and the new turnover tax (10% in 2022 and 8% in 2023).
Austria: 0.029% tax on net worth and guaranteed deposits.
Romania: An additional 1% tax on turnover.
Czech Republic: A 60% surcharge on excess profits.
Poland: 0.44% of assets, including non-performing loans, equities, and Treasury bonds.
Lithuania: 60% tax on interest margins, 50% higher than the four‑year average.