The councils of Álava, Bizkaia and Gipuzkoa agreed at the beginning of October on the parameters in which the Temporary Solidarity Tax on Large Fortunes would apply, in principle, which will function as a complementary tax on Wealth. The need for majorities in Álava and Gipuzkoa, however, has led to a slight modification of that agreement in the three provincial councils. PNV and PSE, which govern these institutions, have reached an agreement with Podemos to finally apply the tax “in more demanding terms.”
The main novelty has to do with the rates for the highest assets. In October, PNV and PSE agreed on the following rates: 1.7 for assets between 3.2 and 6.4 million; 2.1% for assets between 6.4 and 12.8 million; 2.5% for assets between 12.8 and 16 million euros; and, finally, an applicable rate of 3.5% for assets above 16 million euros. Now, as a result of the agreement with Podemos, a rate of 2% has been agreed for assets between 12.8 and 14.5 million in Bizkaia, and 2.5% in Álava and Gipuzkoa, and, likewise, a rate of 3 .5% from 14.5 million in all three cases, instead of the limit of 16 million.
Elkarrekin- Podemos has been in charge of announcing this pact, which has been considered a "fundamental" agreement that affects a "vital" matter such as taxation. "This is what useful politics consists of and it is agreeing on issues that materially transform the living conditions of citizens and that the agreement occurs between different political forces," said David Soto.
The main novelty, as they have pointed out, is this lowering of the threshold on which the maximum rate of 3.5% will be applied, which will now stand at 14.5 million and which, as indicated by Podemos, looks at the bet carried out by the Hacienda de Navarra.
The PNV and the PSE, the two political formations that govern the councils, announced in February their final decision to implement the Tax on Large Fortunes as complementary to Patrimony. It was an issue that was in question due to Basque fiscal autonomy - the economic concert - and the validity of the Wealth Tax in Euskadi. A part of the PNV was inclined to leave it unexecuted, alluding to the existence of Patrimony, with similar types.
In December of last year, the provincial councils agreed on this tax with the Spanish Government and acquired not only the collection capacity for this new tax, but also the regulations. From there, they decided to promote a legal change to introduce it into the regional regulations and execute it as complementary to Patrimony, avoiding friction between government partners and avoiding the recurring criticisms of Basque fiscal autonomy. We must not forget that Andalusia, Madrid and Murcia took the new tax created by the Government of Pedro Sánchez to the Constitutional Court and, when there was speculation that it would not be implemented in the Basque territories, they even spoke of a “tax island for the rich.” ”, a point that contrasts with the fiscal pressure in the Basque territories, much higher than in the communities that resorted to the Constitutional Court.
Despite the modifications introduced by Elkarrekin-Vamos, the rates in the common regime communities will continue to be slightly higher: 1.7% for assets between 3 and 5.3 million euros; 2.1% for assets between 5.3 million and 10.7 million; and 3.5% for assets greater than 10.7 million euros.
