Spain: Constitutionality of temporary solidarity tax on large fortunes upheld, Madrid proposes repeal for its residents
In response to the ITSGF being declared constitutional, the Madrid Assembly has presented a proposal to temporarily modify its rules.
Constitutionality of temporary solidarity tax on large fortunes upheld
The Constitutional Court on 7 November 2023 rejected the constitutional challenge to article 3 of Law 38/2022, introducing the temporary solidarity tax on large fortunes (ITSGF). Read TaxNewsFlash
The ITSGF is imposed in addition to the current wealth tax in Spain. However, Madrid and Andalusia have enacted rules that effectively repeal imposition of the wealth tax for their residents.
In response to the ITSGF being declared constitutional, the Madrid Assembly has presented a proposal to temporarily modify its rules providing effective exemption from the wealth tax during the period the ITSGF would be imposed to extend to its residents effective exemption from the ITSGF as well. The proposal has been presented for processing by the single reading procedure, which will mean, if said procedure is agreed upon, that the text will be submitted to a single vote, without debate prior and dispensing with the amendment process.
Read a November 2023 report (Spanish) [PDF 527 KB] prepared by the KPMG member firm in Spain
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