Taxpayers across ten autonomous communities face an extra levy as a result of a recently enacted state-wide tax aimed at large fortunes. The government, led by Finance Minister María Jesús Montero, positioned this measure as a move to harmonize wealth taxes with regions that already charged a minimum level. In Madrid and Andalusia, where regional wealth taxes had been fully phased out, the new scheme requires a contribution from those with substantial net worth and effectively aligns with neighboring regions that levy similar charges. A study by the Applied Economic Studies Foundation (Fedea) identifies ten communities that will be impacted by this integration: Catalonia, Galicia, Asturias, Cantabria, Murcia, the Balearic Islands, the Basque Country, Navarra, and the three foral territories.
Across these ten areas, the regional wealth tax sometimes falls below the new state tax, sometimes equals it, and in a few cases exceeds it. When the regional tax is higher, the state tax creates no additional burden. If the regional tax is lower or non-existent, taxpayers may owe the new state tax, with the amount varying according to the level of regional wealth tax already paid and the regulatory framework in place. AEAT, the State Tax Administration Agency, will manage the filings unless regional governments raise their own taxes to match the state level before the tax takes full effect. The net result is a shift in how much each taxpayer contributes, with the regional coffers benefiting when their taxes are higher than the new state levy.
For the Valencian Community, La Rioja, Aragon, Castilla-La Mancha, the Canary Islands, Extremadura, and Castilla y León, the new tax does not exceed the regional burden. In these places, the regional wealth tax is equal to or greater than the state measure, so the new state framework does not create a separate additional charge for most residents.
The mechanism of the new tax
Designed as a temporary solidarity measure for very large fortunes, the tax begins with a threshold at 3 million euros. The starting rate is 1.7%, rising to a maximum of 3.5% for net worth beyond about 10.7 million euros. Amounts paid under the regional wealth tax will be credited against the new state tax, effectively reducing the total due to the central government where regional taxes already apply.
In communities where the regional wealth tax meets or exceeds the new tax, residents will not be affected by the new amount. Where there is no wealth tax, or where it is lower than the state level, taxpayers will face a distinct charge that depends on regional rules. The ten communities highlighted in the Fedea study—Carmen Marin, Diego Martinez, and Manuel Diaz—as well as others, illustrate how the interaction between regional and state taxes plays out in practice.
Examples for Catalonia
Fedea’s calculations show that Catalan taxpayers with net worth starting around 17.55 million euros are faced with an additional state payment in 2023 under the new solidarity tax on great fortunes, after subtracting debts and the main home valued at 300,000 euros. The amount due to the central government rises with wealth. A taxpayer in Catalonia with 18 million euros in net worth might owe roughly 3,400 euros to the state in addition to the Catalan levy. If net worth reaches 20 million, the state payment could approach 18,401 euros; at 30 million, the state charge could be about 93,400 euros. As wealth grows further, the state share climbs steeply—an example with 60 million euros shows a state payment near 618,400 euros, and at 100 million euros, the state charge can exceed 1.3 million euros, with millions more due to the Catalan treasury.
These figures illustrate how the state tax supplements regional taxes rather than replacing them, creating a tiered system that depends on where a person lives and how much wealth they hold.
Other communities
In Madrid and Andalusia, residents no longer pay a regional wealth tax because these communities have opted out. Consequently, their taxpayers face the state-imposed threshold of 3.7 million euros (three million plus a seven hundred thousand exemption) with no separate regional wealth tax. Galicia’s cases begin at around 8.64 million euros, while Asturias sets a higher bar at approximately 23.89 million and Cantabria at about 26.29 million. In Murcia, the line stands at roughly 25.03 million euros, and in the Balearic Islands the threshold is much higher, around 209.86 million euros.
For the Basque Country, the state tax begins at roughly 13.17 million euros in Laburu, with different basque provinces showing slightly divergent starting points: Biscay from about 9.60 million, and Gipuzkoa from around 13.07 million. Navarra residents with net worth over roughly 10.61 million euros will be affected by the state levy.
Unresolved issues
The Fedea authors note that Madrid and Andalusia, which already discarded regional wealth taxes, may consider reintroducing or subsidizing the tax in some form. The tension between regional autonomy and the central tax framework remains unresolved. It is possible that affected communities will seek to retain revenue by subsidizing quotas or challenging the arrangement in court, asserting tax autonomy. In Catalonia and seven other regions where the wealth tax is lower than the solidarity tax at higher wealth levels, questions arise about taxpayer sentiments toward higher levies. Some observers worry that these regions could raise their wealth taxes to protect income they fear losing to the central government. An alternative proposal would allow regions to counterbalance tax increases by transferring the increase to another tax while maintaining revenue parity.
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