The proposed abolition of the Wealth Tax targets households with a net worth of half a million euros or more, and the change won’t happen overnight. Inheritance and Donation Tax are in the spotlight as well. Although Ruth Merino, the Minister of Finance, Economy and Public Administration, reiterated on Thursday that the new Consell aims to end this tax, he also stressed that the central government should not lose the revenue and will monitor the situation closely. In other words, the regional government will wait to see what the temporary solidarity tax on large fortunes decided at the national level will be before it signs off on any regional changes.
This stance was echoed by a Consell spokesperson at a business gathering organized by CEV at the Alicantina Fair Institute, where the Financial Commission of the Elche-based employers’ association pressed for the election promise to be fulfilled. Laura Vicente, who attended on behalf of the group, asked whether the abolition would be in place this year, 2023. Merino responded to the businessmen, stating that the commitment remains firm, yet it must be implemented responsibly and at the right moment. Removing a tax that affects the Valencian Community would also impact the tax the state collects, he noted, and it would be illogical to proceed without careful coordination.
Merino also suggested that the plan will consider timing carefully to avoid budgetary gaps while preserving fiscal balance. The remarks came as the regional government outlined a path that would align with national measures, ensuring the region does not lose essential revenue while pursuing reform. A regional official later cited the state’s solidarity tax on large fortunes, approved last year, which applies only when the tax bill exceeds what the taxpayer already paid in Wealth Tax. Pedro Sánchez’s administration supports this approach, implying that residents of regions where the Wealth Tax has been repealed, such as Madrid, would still contribute during times of special need.
The Valencian Community faces a specific fiscal situation. Since the Wealth Tax rate here is already higher than the new solidarity levy, no taxpayer would owe the new tax unless the Generalitat decides to keep its promise and let the revenue stay within the community. The treasury chief emphasized that if the tax exists, the revenues must remain in the Community, barring another shift in policy.
The regional official also pointed to the government’s stance on the temporary solidarity tax on large fortunes, which began last year and is framed as a measure to drain excess wealth during high-demand periods. In practice, it targets extra charges that go beyond what a taxpayer has already paid in Wealth Tax. The broader political leadership, including the finance team, has signaled consent to this approach as a tool to balance budgets and fund public needs in times of stress.
In the Valencian Community, because the Wealth Tax rate already surpasses the new levy, most taxpayers would not face the new tax unless the Generalitat changes its position. If the tax exists, the revenues should stay within the Community, the treasury chief insisted. The evolving plan seeks a careful alignment with national rules while safeguarding regional fiscal autonomy and ensuring ongoing public services without destabilizing accounts.
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Initially, the national framework for the forthcoming period would support the temporary approach to large fortunes, lasting two years, allowing Consell to deliver its pledge with minimal friction. If the Government chooses to make the arrangement permanent, concerns about budget compatibility and sector impacts could arise, especially in banking taxes and related areas. The discussion around permanence remains a live issue as policymakers weigh long-term consequences against short-term needs.
Inheritance
On the other hand, some advisers suggested extending benefits to a broader circle of relatives who may qualify for aid, including distant relatives who could gain from an 99% exemption on Inheritance and Donation Tax. Alicante’s business community is pushing for a broader interpretation of who benefits from these measures, arguing that the relief should reflect the region’s economic realities. Regional leaders stress that future steps will depend on the ongoing economic and financial situation in the Valencian Community and will be balanced with public accounts, ensuring that any reductions are implemented responsibly and sustainably.