bank tax
The official text released this week outlines a new levy aimed at large lenders and financial institutions. The measure targets banks with substantial commissions and net interest income, setting a 4.8% rate for those whose combined revenue from these sources exceeded a defined threshold in 2019. The tax applies to income earned within Spain and also covers foreign entities operating in the country. It looks back to income earned in the previous year, so in 2024 the 2022 earnings would be taxed, and in 2023 the 2023 earnings would be taxed accordingly.
The law states that the total tax burden should not cause direct or indirect costs to customers, though penalties for non-compliance can be severe, including a potential 150% fine. The government will review whether this tax should be made permanent, with a decision anticipated in the last quarter of 2024. The tax is due within the first 20 days of September, following an initial 50% down payment in February. It is projected to raise about 1,500 million euros in each of the two years it is in effect.
energy tax
A 1.2% levy targets companies with annual turnover above 1,000 million euros in electricity, gas, and oil sectors, particularly those earning a substantial portion of income from mining activities. The tax applies to activities conducted in Spain by foreign companies, while activities of Spanish multinationals overseas are generally excluded. Revenues from regulated electricity and gas tariffs and other regulated activities are not included in the tax base. Initially, the Treasury anticipated around 2 billion euros in two years, but Bank of Spain estimates suggest the capacity could be halved after excluding regulated activities. Like the bank levy, this tax is payable within the first 20 days of September, with a 50% down payment in February.
Similar to the banking levy, the act specifies that the tax will not directly impact consumers, although penalties for non-compliance can reach 150%. The government is also evaluating the possibility of maintaining this tax beyond 2023 and 2024, with a final assessment in late 2024.
wealth tax
The new measure, described as a temporary solidarity tax on large fortunes, targets individuals with net assets starting at three million euros. The standard residence threshold for exemptions sits at 700,000 euros. The tax uses a tiered rate: 1.7% for assets between 3 and 5.34 million, 2.1% up to 10.69 million, and 3.5% for assets above 10.69 million.
Taxpayers can deduct previous wealth tax payments made to their autonomous communities, which means the overall burden will vary by region. This change is likely to influence tax outcomes in Madrid and Andalusia, where regional wealth taxes were partially or fully abolished, and in eight other communities with lower regional rates. Catalonia, for example, raises the rate for assets above 17.5 million. The Treasury estimates there are about 23,000 taxpayers with assets exceeding three million euros, and anticipates the new tax could yield roughly 1,500 million euros to the state each year for the next two years.
As with the other measures, the intended effect is to avoid direct economic disruption for consumers while pursuing greater tax revenue. The policy framework includes a potential permanent evaluation in the last quarter of 2024, ensuring ongoing review and adjustment based on economic conditions.
Overall, the package represents a broad approach to corporate and personal taxation, affecting banks, energy firms, and high-net-worth individuals. For international observers in Canada and the United States, the measures mirror common trends toward higher taxation of large, systemically important entities and mobility from regulated, domestically oriented regimes to broader national frameworks. The timing and enforcement mechanisms provide a clear signal about fiscal strategy, while exemptions and regional nuances illustrate the balance between national goals and local policy autonomy. [Source: Official Government Publications; BOE notifications; AEAT statements]