The agreement between PSOE and Sumar lays out an indefinite extension of extraordinary taxes on banks and energy firms and tightens corporate taxation to a minimum rate of 15%. The text advocates a comprehensive reform of the Spanish tax system aimed at increasing its progressivity and narrowing the GDP income gap relative to the European average (46% of GDP by the end of the period). With Spain’s income level around 42% of GDP, the four-point gap translates into an estimated rise in revenue from taxes and social contributions of roughly 62 billion dollars by the end of the legislative term.”
1. Banking and energy
Yolanda Díaz, Sumar’s second vice president and leader, stated after the public signing that the tax on banks and energy firms will be kept. She emphasized the exceptional circumstances and the need to retain these measures. A member of the deputy head of government and PSOE leadership, Pedro Sánchez, added that the taxes on banks and energy will be reviewed when their current period ends, to readjust and preserve their contribution to tax fairness and the welfare state. The agreement text signed by Sánchez and Díaz confirms this approach.
Both leaders have signaled the extension of these taxes for another four years while awaiting their partners to support a shared approach on living arrangements. The two taxes, introduced temporarily through banks via commissions and through energy companies, were set to end in 2023 and 2024 based on 2022 and 2023 revenues. Critics argue that the taxes are based on income rather than profits.”
2. Minimum 15% tax on companies: 10,000 million
The acting president highlighted a tougher wording for the minimum 15% corporate tax. Large companies would finally pay 15 percent on accounting results, not on a reduced tax base. The new rule targets real profits rather than declared profits, and with full implementation, it could boost the treasury by about 10 billion euros. Spain’s 2022 State Budget already featured a 15% minimum tax on the corporate base, but the first year of operation collected far less than projections, with about 538 million euros deposited from the 2023 declaration. The assessment suggests that the actual collection capacity could be far higher than the early figures indicate.
The 2022 budget had already introduced the minimum tax on the corporate base, and the initial results show a sizable gap between actual receipts and the ambition described by the coalition. The new formulation aims to ensure the minimum tax aligns with accounting profitability, before any deductions or benefits are applied.
Keys to agreement between PSOE and Sumar: from changes in working hours reductions and layoffs to new maternity leaves
The document also outlines reforms across various policy areas, emphasizing workforce adjustments and social protections. The agreement includes provisions on working hours, layoffs, and improved maternity provisions as part of a broader reform package designed to stabilize the economy and support families while pursuing fiscal objectives.
3. Wealth tax
The signing document among PSOE and Sumar reviews the results of the temporary solidarity tax on large fortunes and outlines a path toward a new wealth tax within an autonomous financing framework. The initiative targets a net asset tax on holdings of 3 million euros and above. It is set to apply for the years 2022 and 2023, corresponding to declarations for 2023 and 2024 respectively. The Tax Office has reported revenue of 623 million euros from the initial declaration, a figure well short of the 1.5 billion euro annual target that had been projected for the tax. This outcome shows the challenge of matching expectations with actual collections in early years.
PSOE and Sumar agree on urgent strengthening of financing of the Valencian Community and other autonomies
The coalition also commits to reinforce financing for the Valencian Community and other autonomous regions, aligning fiscal tools with regional needs while maintaining the national framework for fiscal reform.
4. Green taxation
The agreement for a Progressive Government proposes higher green taxes to promote the energy transition and decarbonization. Specific tax figures are not laid out in the text, but the plan envisions a green tax regime that builds on an existing framework. The approach includes measures to ensure that polluters pay, while offering compensatory steps through direct taxation or spending programs to avoid undue burden on middle and working classes, with explicit attention to distributional effects and targeted relief where necessary.
5. Better tax treatment for families whose children are already self-employed
PSOE and Sumar also pledge to pursue a tax reform that supports families and coordinates with social spending policy. The reform would improve incentives tied to each child and align with broader efforts to simplify taxation. Additionally, both groups agree to encourage freelancers and small businesses to participate more fully in the ecological and digital transition through enhanced incentives that boost commitment and adaptability.