The government has introduced a new solidarity tax targeting assets valued at 3 million euros, with activation planned for 2022 and the possibility of cash inflows reaching 1,500 million euros starting in June 2023. Treasury officials believe the tax will apply to about 23,000 potential taxpayers who meet the new threshold.
Finance Minister María Jesús Montero has repeatedly stated that the solidarity levy will take effect in 2023. During the presentation of the measure on September 29, a reporter asked whether the tax would impact 2022 assets or only assets from 2023. Montero answered clearly that it would commence in 2023. This means that assets becoming taxable in the following year would be assessed and collected for the first time in 2024. The Budget Plan sent to the European Commission on October 15 confirms a two-year scope, covering 2023 and 2024.
Nevertheless, the same document also outlines a target to raise 1,500 million euros from the solidarity tax in 2023, which implies active taxation from 2022, should the measure be approved before year-end. Ignacio Fernández-Huertas, director of Budget Analysis and a member of the Independent Authority for Financial Responsibility, examined the document and commented publicly on Tuesday that this is the government’s objective if authorization is obtained by December 31. The Finance Ministry later reaffirmed this stance. The plan ties the revenue from the new tax to three sources: a tax on large energy companies, a levy on major financial institutions, and the 3 million euro-plus assets in non-taxed communities, aligning all three to the 2022 tax base as a means to fund crisis-responsive spending.
Achieving implementation in 2022 is not a trivial matter. The 23,000 affected taxpayers are expected to be concentrated in autonomous communities, with Madrid and Andalusia having recently abolished wealth tax. Those with net worth exceeding 3 million euros will have a two-month window before the end of fiscal 2022 to adjust their plans if they aim to minimize the impact of the new tax. The measure is not expected to affect regions such as Catalonia, where wealth tax already exists and is more burdensome than the state-level proposal.
Inheritance-like framework
The government intends to introduce the solidarity levy within the new law, alongside existing taxes on banking and energy that are currently under discussion in the House of Representatives. The plan is to incorporate the new tax into the draft law through a partial modification and seek approval before December 31. According to the finance minister, the solidarity tax will be provisional for 2023 and 2024, with a review to decide whether to maintain it beyond that period. The proposed rates include 1.7% on net worth between 3 and 5 million euros, 2.1% on net assets between 5 and 10 million euros, and 3.5% for net assets above 10 million euros. The calculation will still follow the existing wealth tax rules for its determination, including the habitual residence exemption of up to 300,000 euros used in inheritance or family business provisions.
Amounts paid under the current wealth tax in autonomous communities will be deducted from the new solidarity tax. Practically, this means a harmonization of minimum wealth-tax levels: in places like Catalonia, the new tax would add little to the already higher regional wealth tax; in Madrid and Andalusia, where wealth tax has been reduced to 100%, assets above 3 million euros would be taxed at least in 2023 and 2024. If Madrid and Andalusia retain the 100% rebate, revenues from the new tax would flow to the national treasury rather than staying in the regions. Both communities have signaled intentions to explore the tax once the national measure gains approval, a move complicated by the Constitutional Court’s observation that the regional governments’ tax initiatives could threaten fiscal autonomy.