On January 1, 2023, the Spanish government's new solidarity tax will come into effect. A tax on "large fortunes", its rates are in fact below those which already apply in the Balearics, the region with the second highest taxes on the rich after Extremadura.
An analysis by the General Council of Economists highlights the impact of the tax region by region. This considers three scenarios - assets of four million euros or more; 15 million or more; and 40 million or more. The government's solidarity tax for the first of these brackets is 5,100 euros. In the Balearics, it is 49,997.54 euros. Mostly all of Spain's regions have a tax rate above that of the new tax. Andalusia and Madrid are exceptions, as these two regions do not apply a wealth tax.
For 15 million euros, the new tax will be 278,364.07, whereas taxpayers in the Balearics already pay 375,790.74 euros. At 40 million euros and more, the solidarity tax will be 1,153,364.07 euros, while the rate in the Balearics is 1,238,290.74.
The new tax is not being viewed favourably by some economists. The dean of the College of Economists in the Cadiz province, Javier Cabeza de Vaca, has described the new wealth tax as "a rarity within modern tax systems", and he believes that "it makes absolutely no sense in our country".