Banks have long faced a push to reform how taxes are viewed in the industry, with the government aiming to steer the sector toward a structure that is as tax-efficient as possible while still maintaining fair competition. In practice, this has translated into behind‑the‑scenes efforts to influence parliamentary groups so that any approved tax measures end up being as least burdensome as possible. The result is a sector-wide effort to ensure that the largest set of assets remains taxed in a way that minimizes disruption to competition, a story reported by EL PERIÓDICO, part of the Prensa Ibérica group which has tracked these developments closely.
Through industry proposals, organizations have shaping the conversation. The AEB and CECA employers groups have presented changes to a bill aimed at creating a non‑tax public patrimonial benefit designed to avoid official taxation while closing loopholes. The proposed reforms were moving through Congress with the industry’s preferred outcomes in mind, including foreign banks operating from Spain via branches such as ING and BNP Paribas potentially paying fees only if they could be exempted due to their direct competition with domestic lenders.
Uncertainty remains about how the bill will be interpreted, yet observers estimate that it would affect the budget only to the extent the government has planned. The discussion centers on roughly the 10 to 11 largest assets and whether a lower income threshold would apply, possibly starting around 2019 figures, to secure the anticipated revenue of about 3,000 million euros across 2023 and 2024. The aim would be to keep the tax type under 4.8 percent while allowing room for collaboration among stakeholders. The sector continues to press for broader adoption, while offering targeted concessions on specific elements.
Downloadable and paid
The industry also argued that several line items in the assessment had been overlooked and that the proposed “tax” should be deductible for tax purposes and ultimately passed on to customers. This position was presented as consistent with existing regulations and framed by the European Banking Authority (EBA). It was also asserted that applying the measure more broadly would be discriminatory against banks in comparison with other sectors that can transfer some cost increases to their customers. Large banks with international activity and operations in Spain would, according to these arguments, be exempt from certain aspects of the proposal due to their broader footprint.
From a policy perspective, there is a belief that the tax should target profit rather than basic income because the formula does not fully account for costs and other income streams, such as insurance or investment portfolios. Both employer associations outlined a preferred approach, including removing incentives that would shift the burden away from profit and onto other revenue streams. They acknowledged that the issue is more nuanced and that the bill itself may still undergo changes. It is viewed as unlikely that the measure will be finalized before the end of the year.
years of litigation
The bill originates from a coalition, and there is a realistic chance that it could be challenged once approved. Parliamentary groups or a coalition of at least 50 deputies or 50 senators could refer the measure to the Constitutional Court. Banks have held onto modest hopes, but the current political climate and inflation pressures have dampened expectations for quick action. Despite some signals from the opposition, the political cost of pursuing an unpopular initiative in a year marked by elections makes a swift move unlikely.
What seems more probable is that banks will wait for the treasury to introduce an earlier settlement regarding the tax. If a court challenge is pursued, the parties could contest the measure as unconstitutional and request a referral to the Constitutional Court. Should the court accept, the process would typically extend for several years before a ruling is issued, potentially tying up resources and delaying final resolution as budgets and policy alignments unfold.