Andalusian president Juanma Moreno. / efe

Junta hopes region's wealth tax abolition will encourage 100,000 foreigners to make Andalucía their official home

It also expects the measure to dissuade people from moving to Portugal, where an attractive tax scheme for foreign residents has already been introduced

Héctor Barbotta
HÉCTOR BARBOTTA Seville

The Junta de Andalucía is hoping that its recent cancellation of the wealth tax will encourage at least 100,000 people who spend time in the region to make it their permanent home.

Sources at the regional government say the decision to get rid of the tax was made after taking into account the results of several studies into the potential impact of the move. These results indicated that fears that it would be seen as favouring the rich were unfounded, and also revealed that a large number of wealthy foreigners who spend most of the year in Andalucía are still officially registered as being resident in their own countries.

The Junta also says it has information to show that during the pandemic there was an influx of wealthy foreigners to Andalucía because they could work remotely. Many company directors were among those who made the Andalusian coast their second home.

Now that they do not have to worry about wealth tax, the Junta believes they can be convinced to change their status and become officially resident in Andalucía. Most of these people are in Malaga and Cadiz provinces.

It is also hoped that the change to the tax will stop people who are already in Andalucía moving to Portugal, something which had been occurring because the neighbouring country had introduced a more attractive tax regime for foreign residents.