María Jesús Montero, the minister of finance and public function, announced that the government has approved a package of fiscal measures alongside a new solidarity tax. The package aims to raise revenue by targeting higher wealth, with a focus on individuals whose assets exceed certain thresholds. Government estimates indicate that more than 23,000 people with assets above three million euros will contribute to the plan, helping to secure more than 1.5 billion euros for public finances.
During a government briefing designed to outline the fiscal measure package, Montero clarified that the new tax will apply in the 2023 and 2024 fiscal years and is projected to yield about 1.5 billion euros. The tax operates in three tiers based on asset values: 1.7% for assets between 3 and 5 million euros, 2.1% for assets between 5 and 10 million euros, and 3.5% for assets exceeding 10 million euros. This structure is intended to ensure the tax burden scales with asset size while maintaining consistency with fiscal goals.
In addition to these measures, the government intends to raise capital income taxation by up to 27% for personal income tax on incomes surpassing 200,000 euros. For capital gains above 300,000 euros, the rate will rise to 28%, effectively increasing the tax take by two percentage points in these high-earning brackets. The reform seeks to align capital taxation more closely with overall income and wealth levels while safeguarding broader revenue targets.
Complementing the higher-rate components, the government also announced changes designed to bolster middle and lower incomes. The personal income tax relief currently available for earnings up to 18,000 euros will be increased to 20,000 euros, providing meaningful savings for many households. Officials estimate that this adjustment will translate into total savings of around 1.881 billion euros for eligible taxpayers, reinforcing the regime’s progressivity.
Furthermore, earnings from work exceeding 15,000 euros annually, equivalent to more than 1,000 euros per month, will become exempt from personal income tax, reflecting a targeted approach to support earners at the middle of the income spectrum. The policy aims to preserve incentives to work while reducing the tax burden on main sources of middle-class income.
Treasury cuts corporate tax for SMEs to 23%
In another move, Montero reiterated that corporate taxation will be reduced to 23% for small and medium-sized enterprises that report annual invoicing below one million euros. The reform also temporarily restricts the ability of large corporate groups to offset losses from prior years, a measure designed to balance incentives for smaller firms with overall fiscal discipline. This two-point cut is expected to ease tax compliance for smaller businesses and enhance their cash flow as they invest and grow.
At the briefing, Montero explained that the 23% rate for micro and small entities would benefit roughly 407,000 companies, producing considerable annual savings estimated at 292 million euros. The policy’s scale demonstrates a practical commitment to supporting entrepreneurship and local economic activity by reducing the tax burden on the firms that form the backbone of regional economies.
On the other side of the spectrum, large consolidated groups will face stricter rules regarding loss deductions. They will be allowed to deduct only 50% of losses in 2023, with the remaining portion carried forward to 2024. Officials indicated that this adjustment will increase anticipated revenue collections by about 2,439 euros in 2023 and 2024, affecting a relatively small share of the corporate landscape, approximately 0.2% of companies. The policy strives to maintain budgetary integrity while ensuring a fair playing field across business sizes.