On 22nd September 2022, Spain's Minister of Finance,
María Jesús Montero, announced plans to introduce a
new tax on the very rich.
The new tax will apply to the very rich, a term which has not
yet been defined, although it is expected to affect less than 1% of
the population.
It will be introduced with effect from 1st January
2023 for a temporary period of possibly two years, after which a
decision will be made whether to extend it, and this will depend on
the circumstances at the time, including the duration of the war in
Ukraine.
No further details have been revealed regarding the level of the
tax or the form it will take, such as whether it will be a tax on
income or wealth, as the government is still working on those
aspects. A new tax would require new legislation, whereas an
existing tax can be modified and approved in the annual State
Budget.
