Income from the Temporary Solidarity Tax of Great Fortunes (ITSGF) has gone from 619 million in 2023, the year in which it came into force, to 38 million in 2024, due to the reactivation of the Wealth Tax by several autonomous communities, such as Madrid, Andalusia or Galicia, since if the regional tax exists, it is not paid by the state tax.
In terms of national accounting, the income from the Temporary Solidarity Tax of Great Fortunes, which came into force in 2023 with a collection of 619 million, has been reduced in 2024 to 38 million “due to the changes implemented by the autonomous communities », according to the report of the General Intervention of the State Administration (IGAE), referring to the month of August.
In this way, the data published by the Tax Agency reflects that, until August, there would have been a drop in revenue for this tax of 93.9%, going from 619 million to 38 million in the first eight months of the year.
The solidarity tax on large fortunes affects net assets greater than 3 million eurosis accrued on December 31 of each year and the declaration is submitted between July 1 and 31.
To avoid double taxation, taxpayers only pay taxes on the part of their assets that have not been taxed by their autonomous community in the Wealth Tax.
In this way, in the solidarity tax of large fortunes a deduction is applied to the amount paid in the Wealth Tax, deducting from the payment of this new tax the amount paid by the Wealth Tax.
For this reason, last year the collection was obtained, mainly, from the large assets of autonomous communities that had the Wealth Tax fully or partially subsidized, as was the case of Madridwhich provided 89% of the collection -more than 550 million euros-.
However, the Community of Madrid decided at the end of 2023 to recover the Wealth Tax for fortunes of more than 3 million and prevent the State from collecting the tax from the rich, while other territories such as Andalusia have given large taxpayers the option of pay property taxes in the autonomous community.
The Wealth Tax was abolished as of January 1, 2008 and after the economic crisis, the Government of José Luis Rodríguez Zapatero recovered it in 2011, initially temporarily until 2013, but the Executive of Mariano Rajoy and now the Pedro Sánchez has maintained and extended it successively.
Madrid leads the amounts
Of the Wealth Tax filers in 2022 – latest data available from the Tax Agency – most are concentrated in three regions: Cataloniawith 87,382, which heads the list at some distance with the next region, which is the Valencian Community, with 28,009 filers, followed by Madrid (23,486).
On the other hand, in the distribution by amount of declared assets, the regional classification changes considerably, since in this case Madrid tops the ranking, with an average declared assets per taxpayer of 11 million euros.
What will happen to the tax?
Within the framework of its programmatic agreement to form a new progressive coalition Government, PSOE and Sumar agreed to evaluate the results of the Temporary Solidarity Tax of Great Fortunes with the aim of moving towards a new taxation of wealth within the framework of the regional financing model to end unfair tax competition between territories.
However, in view of the negotiation of the General State Budgets (PGE) of 2025, Sumar proposes modifying the solidarity tax of large fortunes, as a direct, personal and complementary tax to the Wealth Tax (IP) so that tax on the net assets of natural persons that exceed 1,000,000 euros – without prejudice to the exempt minimum of 700,000 euros -, initially applicable only to taxpayers due to personal obligation instead of 3,000,000 euros as currently stated.
