Closest thing to foreclosure fortune in Spain involves a wealth tax that applies to net wealth, with debts deducted. Long ago this was common globally, but today it is rare. It began in Spain in 1977 as an “extraordinary” levy. It was slated for abolition in 2008, yet a downturn in revenue during the crisis led to a rebound in 2011, and it has since been extended to cover 2020 accounts in the State Budget, now established on a permanent basis.
Juan Manuel Moreno Bonilla, president of the Junta de Andalucía, has revived the discussion, announcing a 100% bonus similar to Madrid. Other PP-led regions have joined, with Galicia signaling that the 25% reduction previously in place will rise to 50%.
In some advanced economies, where wealth taxes are integrated, the tax is payable only on top of Spain, with examples like Switzerland and Norway. An EY comparison shows that some taxes target specific assets rather than wealth as a whole, as seen in France, Belgium, Italy, and even the United Kingdom.
Spain
Taxpayers with assets above €700,000 face rates from 0.2% to 3.75%, reflecting a progressive structure where higher net worth pays more. Administration falls to autonomous communities, which can grant deductions, bonuses, and modify rates from the exempt minimum. For instance, Aragon lowered the exempt threshold to €400,000, while Catalonia, Extremadura, and Valencia set higher minimums at €500,000. Lowering the threshold expands the pool of filers. In Andalusia, Extremadura, and Valencia, minimum limits have been increased for taxpayers with disabilities.
Switzerland
Tax collection varies by canton and targets certain assets owned globally, rather than wealth in a single sense.
Norway
A 0.95% rate applies to net assets exceeding roughly €195,000, and the rate rises to 1.1% if assets top about €2.4 million.
France
The solidarity tax on wealth, introduced in 1989, was replaced in 2018 by the real estate wealth tax (IFI). The IFI applies when the net worth of real estate exceeds €1.3 million, with rates climbing to 1.5% for higher values.
Italy
The large-estate tax in Italy stands at 0.76% on property held abroad and 0.2% on financial investments.
Belgium
A 0.15% tax was introduced in 2021 on securities accounts meeting or exceeding one million euros, applicable to holdings both domestically and abroad.
United Kingdom
While there is no formal wealth tax in the UK, an equivalent instrument appears as a property tax regime. Residential property faces a tax spectrum from a £125,000 exemption up to 12% on properties valued above £1.5 million. For non-residential property, the exemption starts at £150,000 with a maximum rate of 5%.