Temporary solidarity tax on large fortunes

In this blog of Mercury Abogados in Marbella we are going to analyse the creation of the Temporary Solidarity Tax on Large Fortunes, for tax returns from 2022 onwards.

First of all, we must point out that this is an annual state tax, the collection of which, unlike the Wealth Tax (hereinafter, IP), is not transferred to the Autonomous Communities.

However, this tax is regulated in many aspects by the IP, as it also taxes the net wealth of individuals at 31 December of each year.

And individuals are obliged to file this tax when their net wealth exceeds 3,000,000 euros. It should be remembered that the net worth is made up of assets and rights of economic content, deducting charges and encumbrances that reduce their value, as well as debts and personal obligations that must be met. In addition, for those who are taxed on the basis of personal liability, their taxable base will be reduced by 700,000 euros.

The tax rates of the tax have the following scale:

Net taxable base to Euros	Tax amount Euros	Remaining taxable base to Euros	Tax rate %
0,00	0,00	3.000.000,00	0,0
3.000.000,00	0,00	2.347.998,03	1,7
5.347.998,03	39.915,97	5.347.998,03	2,1
10.695.996,06	152.223,93	Onwards	3,5

We must remember that non-residents are taxed for their limited tax obligation, that is, the sum of the values of assets or rights located only in Spain, unlike tax residents in Spain who pay said tax with the value of their assets or rights worldwide.

And new for non-residents, the shares of non-resident entities -which are not traded on organised markets- whose assets are directly or indirectly composed of at least 50% of real estate located in Spain, will be deemed to be located in Spain.