Spain introduced a “solidarity” wealth tax for 23,000 people | Job Binary

  • One in every 1,000 taxpayers in Spain will have to pay the new wealth tax.
  • The government announced the tax on Thursday, which it expects to bring in up to 1.5 billion euros.
  • He also unveiled tax cuts for small businesses, the self-employed, and workers on or below the median income.

Spain introduced a second wealth tax amid rising inflation, adding an additional 3.5 percent tax on wealth above $10 million.

On Thursday, the country’s Minister of Finance and Public Administration, María Jesus Montero, announced the so-called “solidarity tax”.

The government said up to 23,000 people, or about 0.1% of all taxpayers, could pay the new tax, which would bring in 1.5 billion euros ($1.46 billion).

To avoid people being double-taxed, the tax will only apply to the part of the people’s assets that their autonomous community does not tax, the government said. Individuals are taxed at 1.7% on assets between 3 and 5 million euros, 2.1% on assets between 5 and 10 million euros and 3.5% (about $9.76 million) on assets over 10 million euros.

The government has said it is a temporary state tax for 2023 and 2024, after which it will consider whether to keep the tax.

Montero unveiled the solidarity tax as part of a package of fiscal measures he says are designed to make Spain’s tax system fairer and spread the effects of inflation and the country’s economic downturn.

In Spain, inflation exceeded 10% for three months in a row in the summer, and decreased to 9% in September, according to the country’s statistics agency.

Montero also announced income tax cuts for people earning less than 21,000 euros ($20,490) a year, which he said would save a total of 1.88 billion euros ($1.84 million) for half of the country, as well as small workers reduces taxes for and medium business entities and the self-employed.

The government also said it would cut taxes on feminine hygiene products, condoms and contraceptives from 10 percent to 4 percent. Reuters has said it has no intention of changing the food tax.

The government is also raising taxes on companies with annual revenue of at least €200 million and expects to bring in an additional €200 million by increasing the tax on capital gains above €200,000.

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