Tax measures announced by the Spanish Government

The Spanish Minister of Finance and Public Function has announced a package of tax measures that are expected to be promoted or approved soon, some of them potentially very relevant. These new tax measures are in addition to the windfall tax on banks and energy companies that has recently been announced by the Government.

Although there is still no detailed information on these new tax measures, below we highlight the most relevant ones, as they have been presented:

I. CORPORATE TAX

• The possibility of offsetting tax losses within a tax consolidation group will be limited by 50%. This would be a temporary measure allowing a rise in tax collection by 2,439 million Euros between 2023 and 2024.
• The nominal Corporate Income Tax rate would reduce from 25% to 23% for small sized enterprises with a turnover up to 1 million Euros.

II. SOLIDARITY TAX ON LARGE FORTUNES

A new tax called "Solidarity Tax of Large Fortunes" would be created and it has been announced to affect those having net assets over 3 million Euros.

The Wealth Tax paid to the relevant Autonomous Community will be creditable from this new tax.

The applicable tax rate will be 1.7% on net assets between 3 and 5 million Euros; 2.1% on net assets between €5 million and €10 million Euros; and 3.5% on net assets over 10 million Euros.

This is a temporary State tax for the years 2023 and 2024, although a review clause is foreseen to be included to evaluate, at the end of its validity, whether its maintenance is necessary or not.

This new tax is estimated to potentially affect 23,000 taxpayers (0.1% of the total) and its collection potential would reach 1,500 million Euros.

Other measures have been announced regarding the Personal Income Tax and the VAT rates of certain sanitary products.