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Date Published: 19/09/2022

ARCHIVED - Andalusia to scrap wealth tax for richest and bring down tax rates for poorest

ARCHIVED ARTICLE

The regional president hopes that the new tax laws will attract high-level investment

<span style='color:#780948'>ARCHIVED</span> - Andalusia to scrap wealth tax for richest and bring down tax rates for poorest

Juanma Moreno, the president of the Junta de Andalucía regional government, has announced that he intends to abolish the ‘Impuesto de Patrimonio’ Wealth Tax in the autonomous community.

During a speech in Madrid this Monday, September 19, Moreno said, “We want to encourage certain incomes to take up residence in Andalusia,” making reference to the fact that scrapping a tax on the highest paid earners would theoretically attract more wealthy people to settle in Andalusia and invest in the community.

Andalusia is the place in Spain with the most expensive urbanisations and property developments, and people as varied as Rod Stewart and Vladimir Putin are rumoured to own houses on Spain’s luxury south coast.

Moreno, who was voted in for another four-year term of office last June in a convincing electoral victory, specifically said that the elimination of this tax “will not have a negative impact” on the Junta’s budget, since it represents just 0.6% of the region’s total income. On the contrary, he says, it will attract the “investment capacity” that Andalusia needs, but his detractors say the move will turn him into “the Robin Hood of the rich”.

Andalusia is the second community after Madrid to subsidise 100% of this tax, and Juanma Moreno has explicitly based his next move on the perceived success of the Spanish capital: “I believe that the Madrid model has worked and is a successful model.”

Both Andalusia and Madrid are run by conservative PP governments, as is the Region of Murcia.

“In a global and competitive world, communities with less tax pressure are more attractive to investment,” he said.

Other fiscal measures he announced include the abolition of the water tax, lowering the IRPF personal income tax for the lowest-income earners and an increase in the level of how much money is exempt from personal income tax.

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