Spain’s Treasury To Increase Taxes On Incomes Over €140,000 Spain News

Spain’s Ministry of Finance, with the backing of left-wing party Unidos Podemos have announced plans to increase IRPF income tax for those who have an income in excess of €140,000 per annum.

It has been suggested that the plans would establish two new income tax thresholds, one from €140,000 and one from €300,000 with the aim being to increase revenue by around four percentage points.

In 2018, the maximum general rate of income tax in Spain for incomes over €60,000 is 45%, with the exception of a number of other autonomous communities such as Andalusia and Catalonia where the rate is 48%.

The proposals which are thought to be in their final stages would mean an increase from 45% to 49% on incomes above €140,000, which would mean that Andalusians and Catalonians could potentially pay up to 52% on incomes above €300,000.

In a recent interview with Antena 3, Minister of Finance, María Jesús Montero made assurances that income from work and capital below this threshold would not be impacted by the proposals, but did not rule out the introduction of an intermediate tax threshold from between €60,000 to €140,000 in order to make the tax more progressive.

Image By Junta Informa (Flickr: 13.04.30 C.Salud 1) [CC BY-SA 2.0 ], via Wikimedia Commons