New wealth tax part of Spanish government’s economic plan for cost of living crisis

Spanish Government will announce measures at end of December to tackle food price increases

Image of President of the Spanish Government, Pedro Sanchez. Credit: zixia /

The Spanish government announced a new wealth tax on Thursday September 29. New measures were announced by the PSOE left-wing coalition government to tax wealth in excess of €3 million.

The country’s Finance Minister, María Jesús Montero, announced the measure as a “movement of solidarity” during the economic crisis. The tax is a temporary measure as the government move to combat rocketing energy bills and inflation.

The tax will affect around 21,000 Spanish taxpayers. The measure will tax in increments, starting at 1.7 per cent for people with €3-5 million, 2.1 per cent for those with €5-10 million and 3.5 per cent for individuals with more than €10 million.

Income tax is also likely to rise from 26 to 27 per cent for those earning more than €200,000.

The package of economic measures has been agreed between the government and its coalition partners, Podemos, and will raise €3.1 billion during the next two years. Montero described the measures as aiming to make the economy “more progressive, efficient and fair”.

Opposing regional governments with devolved power are likely to introduce measures including tax relief.