Andalusia scraps Wealth Taxes
20 Sep 2022
Andalusia is now one of Spain’s lowest tax regions after the President of the Junta, Juanma Moreno, announced the abolishment of wealth tax on Wednesday, 21st September.
Develop economic activity
Speaking to the media on Monday, Juanma Moreno wants people with high income who spend long periods in Andalusia to make it their permanent home and pay taxes there. “This will help us to develop economic activity and employment,” he said. Moreno has estimated that the tax reduction will attract 7,000 new residents. “We will exceed by far that 0.6% of income, through income tax and indirect taxes,” he said.
The decision to scrap wealth tax is likely to make moving to Andalusia on a more permanent basis an attractive option for many. This reduction in taxes pitches Andalusia against other Spanish cities like Madrid and Barcelona. It may also reverse the recent trend of relocating to Portugal amongst the wealthy.
Full details of the proposed legislation are due to be released soon. We are expecting the text to include further reductions.
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