Spain has introduced a temporary wealth tax for people whose fortune exceeds three million euros ($2.9 million) to mitigate the consequences of the unfolding economic crisis, Finance Minister Maria Jesus Montero said on Thursday
MADRID (Pakistan Point News / Sputnik - 29th September, 2022) Spain has introduced a temporary wealth tax for people whose fortune exceeds three million Euros ($2.9 million) to mitigate the consequences of the unfolding economic crisis, Finance Minister Maria Jesus Montero said on Thursday.
"This solidarity tax will be introduced as a temporary measure for 2023, 2024 and will be paid by taxpayers with a net worth of more than 3 million euros," Montero said at a press conference.
This measure will affect 23,000 taxpayers, or 0.1% of the total population. After the introduction of the tax, Spain could potentially replenish the budget by 1.5 billion euros, according to the minister.
Taxpayers will be divided into three main groups: people with capital of three to five million euros will be taxed 1.7% of the sum, those with five to 10 million euros will face a 2.1% tax rate, and those owning over 10 million euros 3.5%.
In addition, Montero announced an increase in the tax rate to 27% on capital revenue of over 200,000 euros per year, and to 28% for income over 300,000 euros. At the same time, the government intends to reduce income tax for people who earn less than 21,000 euros per year.
Since the launch of the Russian special military operation in Ukraine, Western countries have adopted several packages of sanctions against Russia, in particular against its energy sector. The Ukraine crisis and sanctions have accelerated Europe-wide inflation and resulted in disruptions to supply chains and a spike in energy prices worldwide.
