Spanish government's large-fortune tax collects less than planned

Central government's tax on large fortunes was intended to replace the regionally levied wealth tax, which is increasingly being scrapped by regional governments. But the collection of the new national tax has so far turned out to be lower than estimated for 2023.

The tax office says it has received 623 million euros as a result of its national tax, well below the 1.5 billion euros projected when ministers launched it as an emergency measure for the cost-of-living crisis.

Some 12,000 people, 0.1% of taxpayers in Spain, have paid it. On average, they paid 52,000 euros for their assets.

The national tax is designed to target those living in regions which have scrapped the wealth tax, and so mostly affects Madrid, Galicia and Andalucía. Nine in ten of those who have paid it are in Madrid. Analysts say the small print of the government's tax on large fortunes allows many people due to pay it to legally significantly reduce their liability.