Flash on New Tax Measures in Spain

The Ministry of Finance of Spain has announced a package of tax measures intended to be implemented during 2023 and that they will be incorporated into the General State Budget Law for 2023 and other laws pending approval. Some of these measures include:

  • The so-called Solidarity Tax on Large Fortunes. This would be a temporary tax (for 2023 and 2024, even being considered for approval to enter into force in 2022 and therefore to apply for 2022 and 2023) that will be levied on individuals whose net assets exceed €3m.

The tax rate will be:

  • 1.7% for net assets between €3m and €5m.
  • 2.1% for net assets between €5m and €10m.
  • 3.5% for net assets over €10m.

The amount paid for the wealth tax will be able to be deducted from this solidarity tax.

  • Tax rate for Capital Income Tax between €200k and €300k is increased to 27%. For income over €300k, the tax rate rises up to 28%.
  • In Corporate Income Tax the possibility of offsetting tax losses in tax consolidation groups will be limited by 50%. This is a temporary measure for 2023 and 2024, deferring the possibility of offsetting negative tax losses to a later tax period.

The Corporate tax rate is reduced from 25% to 23% for companies with a turnover of up to 1 million euros.

  • The Value Added Tax (VAT) on feminine hygiene products – sanitary towels, tampons and panty liners – will be reduced from 10% to 4%. The deduction will apply to condoms and non-medicinal contraceptives.

The information contained in this note should not in itself be considered as specific advice on the matter under discussion, but only as a first approach to the subject matter, and it is therefore advisable that the recipients of this note obtain professional advice on their specific case before taking specific measures or actions.