On 28 December 2022, Law 38/2022 of 27 December was published in the Official State Gazette (BOE) for the establishment of temporary energy taxes and credit institutions and financial credit establishments, creating the Solidarity Tax on Large Fortunes and amending certain tax regulations.

This new tax is of a state nature and is complementary to the Wealth Tax, the taxpayers being individuals resident in Spain for the totality of their net wealth, as well as non-resident individuals for the assets and rights that are located, could be exercised or must be fulfilled in Spanish territory (tax liability).

It is levied on the net wealth of individuals in excess of EUR 3,000,000, applies an additional minimum exemption of EUR 700,000 and the tax base is calculated according to the rules of the Wealth Tax.

The new tax is temporary, accrues on 31 December of each year, and is applicable for the years 2022 and 2023.

The tax scale is as follows:

The amount paid for Wealth Tax is deducted from the amount resulting from this tax, so that in some Autonomous Communities there may be no amount to pay for this tax.

Among other tax measures approved by this Law, we would highlight the amendment of article 5 of Law 19/1991, on Wealth Tax, whereby, for the purposes of being subject to the tax by tax liability, securities representing the participation in the equity of any type of entity, not traded on organised markets, whose assets consist of at least 50%, directly or indirectly, of real estate located in Spanish territory, are considered to be located in Spanish territory.

This amendment means that non-residents with shares in companies holding real estate in Spain must pay both Wealth Tax and the Solidarity Tax on Large Fortunes, depending on the Double Taxation Avoidance Agreement signed by their country of origin.

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