The swift revival of activity after months of stringent lockdown to curb the first wave of the coronavirus unleashed an almost immediate sense that the worst for the economy had passed. Because events unfolded with such speed, predicting the exact outcome was almost impossible. The shutdown was abrupt, and as the pandemic swept across the globe, economies paused in a way never seen before. As signs of recovery emerged, governments rolled out support measures—short-term unemployment payouts, subsidies for freelancers, direct injections into the sectors hardest hit, and other relief programs—that helped ease the transition into what many described as the new normal. A large share of workers, corporate investment capacity, and household earnings were preserved, yet poverty risk rose from 21% to 21.7% over 2020. Meanwhile, wealth accumulation did not falter; a substantial segment of the population amassed wealth, while some regions reported notable gains in high-net-worth individuals. Galicia, in particular, reflected an intriguing dynamic where the concentration of wealth appeared to be climbing even as broader economic pressures persisted, underscoring a paradox seen in many economies: growth at the top can coexist with fragile conditions lower down the income ladder and in the middle class. The broader context shows how economic resilience coexists with inequality, and how regional fortunes can diverge within a nationwide framework.
The number of people filing Wealth Tax returns reached 8,242, a figure without precedent since the tax was reintroduced after its 2012 rollback. Taxpayers with assets exceeding 700,000 euros, excluding up to 300,000 euros tied to a primary residence, and those above two million typically faced the most scrutiny. The most recent balance sheet shows wealth totaling 49,464 million euros, up 3.3% (an increase of 1.569 million euros) from the prior year and accounting for roughly 85% of regional gross domestic product (GDP). The tax authority notes that the average reported savings, investments, and other items per taxpayer stood around 6 million euros. Over the last decade, this privileged subset has expanded by about 26%, with holdings roughly doubling in size. These figures illuminate a persistent gap between the wealthiest residents and the rest of the population, a trend echoed across many regions and intertwined with housing, investment, and consumer behavior as the economy recalibrates.
In Galicia, 3.8% of the 218,991 taxpayers reside in the region, which positions it as the seventh wealthiest autonomous community—excluding the Basque Country and Navarra due to their separate tax systems. The presence of notable billionaires from the area, such as the founder of Inditex and a prominent local business family, helps drive attention to Galicia’s fiscal profile. After accounting for exemptions and deductions, 7,646 affluent Galicians contributed 66.6 million euros in inheritance tax, about 8,711 euros per person, which represented a 27% decline from 2019 due to more aggressive tax reliefs. The effective tax rate hovered around 0.64% compared with 0.88% the year before, reflecting policy shifts that influenced the overall tax take while still underscoring regional wealth concentration. In this landscape, fiscal policy and personal wealth patterns interact with broader economic outcomes, shaping debates about equity, tax design, and regional development.
Turnover from Inheritance in the state framework totaled roughly 1,204 million euros nationwide. Madrid would appear to maximize the use of over 992 million euros if not for the fact that its regional government subsidizes it at full rate. Catalonia recorded about 546 million, the Community of Valencia about 156 million, Andalusia around 93 million, and the Balearic archipelago about 68 million. Among nearly 219,000 taxpayers across the country, 724 individuals qualified as super rich, with the wealth base extending beyond the 30 million euro mark and twenty more surpassing that threshold since the pandemic began. Galicia’s property market benefited from a real estate surge, with confidence rising as investors sought to strengthen portfolios. Investments in urban properties rose by 230 million euros, rural or rustic assets rose by 6 million, and movable capital grew by 1,270 million. Public debt and bonds were trimmed further, with five million reduced in public instruments and an additional 330 million shaved from listed shares. Holdings in collective investment funds rose by 161 million, and exposure to non-hardened or exempt shares stood at 1,231 million, while bank deposits increased by 19 million. Luxury goods also surged, with values tied to vehicles, ships, planes, jewelry, and leather goods rising by 55% to reach 123 million euros in a single year. The data reveal how wealth dynamics interact with investment cycles and consumer demand, contributing to a nuanced picture of regional economic health and the broader fiscal equation.