Wealth Tax is now ON! – The Banana Republic of Spain
Amending the Constitution without public consultation during the summer holidays and reinstating Wealth Tax without Parliament discussion indicates that not only financially, but morally, there is something very wrong with Spain. The reinstatement of the Wealth Tax by decree during the existing tax year may respect the letter of the law, but disregards in all fairness the principle of retroactivity and parliamentary consultation. What legal security is this country offering to the international community when a moribund Government is able to alter the Constitution and the tax system without opposition? Wealth Tax is back by a government decree approved on Friday as13/2011 of 16/9/2011 (attached). The Wealth Tax is applicable for the tax year starting 1/1/11 until 31/12/12. Hopefully the new Government coming from the elections in November will abolish this dreadful tax that does not exist in any other civilised country. Unfortunately we can only hope for that to happen. The Wealth Tax contemplates an allowance of 300,000 Euros for the primary residence and 700,000 Euros for the existing net assets, and the tax charge goes up to 2.5% on existing net assets at 31st December 2011.