The Spanish government has introduced a second wealth tax to tackle the cost-of-living crisis.
María Jesús Montero, the country’s minister of finance and public administration, announced a so-called “solidarity tax” that will see an extra 3.5 per cent tax on top of wealth over $10 million.
It is estimated around 23,000 people, or around 0.1 per cent of all taxpayers, could have to pay the new tax, and that it could bring in as much as 1.5 billion euros.
Montero also announced a cut in income tax for people earning less than 21,000 euros ($20,490) a year, which she said will save a total of 1.88 billion euros ($1.84 million) for half the country’s workers, as well as tax cuts for small- and medium-size businesses and self-employed people.
She said the package of fiscal measures was designed to make Spain’s tax system fairer and spread out the impacts of inflation and the country’s economic downturn.
Inflation exceeded 10 per cent in Spain for three consecutive months during the summer, though moderated to 9 per cent in September, data from the country’s statistical authority showed.
The government is also raising taxes on companies with at least 200 million euros in annual income and expects to bring in an additional 200 million euros by increasing taxes on capital gains above 200,000 euros.