Wealth tax was levied on the net value of Spanish assets for non-residents, and on worldwide assets for residents, above €700,000 according to a progressive scale of up to 3.5%.
The president for the region of Andalucia, Juan Manuel Moreno, has announced that the abolition of the Wealth Tax (Impuesto de Patrimonio) came into effect on 21 September 2022.
According to Moreno, the aim of this initiative is to stimulate the economy in the region by boosting the “investment capacity for the promotion of economic activity and employment.” He said repealing the wealth tax will encourage individuals to establish their tax residence in Andalucia, and assured the loss of wealth tax revenues to the regional coffers will be more than compensated for by the additional income taxes and for other forms of indirect taxation generated by the initiative.
Among other tax cuts announced by Moreno is a 4.3% reduction in income tax rates and allowances for the lower brackets. He also said that water taxes are to be scrapped in 2023. After these latest changes to taxes, Moreno said that Andalucia will be the ”second region with the fewest taxes in Spain.”
He explained that these initiatives are designed to transform Andalucia into a region where it is easiest to do business encouraging investment and job creation.
Moreno also vowed to remove all unnecessary red tape and unjustified delays in a bid to create a regulatory environment conducive to business operation.