A large part of the Partido Popular’s promise to the electorate at the last election related to tax reform, including the abolition of the Wealth Tax. They recently fulfilled their promise, along with a slew of other reforms aiming to make inward investment to Andalucia both easier and more attractive for business and individuals.
On 20 September 2022, the President of the Junta de Andalucía, Juanma Moreno, announced that Andalucía would be the second autonomous region in Spain to abolish the Wealth Tax, following through on one of his Partido Popular (PP)’s main election promises.
The tax has had a chequered past, having been suspended nationally in 2008 in the form of a 100% rebate, then reintroduced in 2012, with only Madrid declining its reintroduction. The abolishment of the tax now will give Andalucía one of the most attractive tax regimes in the country. Of course, it has always been one of the most popular Spanish regions, thanks to the wonderful climate, mature infrastructure and advanced property market. The Junta anticipates that with this change in taxation, it will become an even more attractive destination for people to live and work.
The regional government have made an estimate that the region will see 7,000 new residents as a result of the change, expecting to appeal to High New Worth Individuals (HNWI) who may previously have decided to base themselves in Madrid. These new residents will more than compensate for any loss of income from the Wealth Tax as they contribute to the local economy via income and indirect taxes, also encouraging individuals wishing to start businesses in the area.