The General Council of Economists yesterday demanded an end to the Wealth Tax. “If we consider that Spain has a globalized economy, the tax is anecdotal in all tax systems and presents technical and equity problems; “The reasonable thing would be to suppress it,” defended its president, Valentín Pich.
The Registry of Tax Advisory Economists (REAF) yesterday released a complete report with the inequalities that wealth taxation presents in Spain depending on the territory where the taxpayer resides. Regarding the Wealth Tax, which is paid in autonomous regions such as Catalonia, tax experts propose that, if it is not eliminated, the marginal rate should be reduced to a maximum of 1% to put an end to the distortions. They also propose homogenizing the tax base and setting a minimum exemption throughout the country, as well as limits on deductions and bonuses.
Economists observe wide inequalities between taxpayers from different communities when it comes to paying the tax. For example, a taxpayer with assets of 15 million, in 2023 would not pay anything for this tax in the Community of Madrid, Andalusia and Extremadura. However, in the Valencian Community he would pay 401,234 euros and in Catalonia, 297,463.93 euros.
Regarding the new tax on large fortunes, the General Council of Economists recommends “self-assessing both (along with Patrimony), paying them and, after assessing the contingencies, and taking into account the prescription, request the rectification of the self-assessment and the return of undue income, with the intention of taking advantage, where appropriate, of an estimatory ruling.”
Similar inequalities exist in the Inheritance tax. The REAF presented the case of a 30-year-old single heir who receives an inheritance of 800,000 euros in assets from his father, of which 200,000 correspond to the deceased’s habitual residence. If the heir resides in Madrid, he will have to pay a total of 1,586.04 euros in inheritance tax in 2023. If, on the other hand, he resides in Catalonia, he must pay 44,568.48 euros.
A similar situation occurs with the Donations tax. The Council of Economists highlighted the case of a 30-year-old son receiving 800,000 euros in cash from his father in 2023, without a specific destination and without having any degree of disability. He will have to pay 56,000 euros in donations if he resides in Catalonia. In Madrid he would have to pay 2,006.06 euros.
