Andalucia: no Wealth Tax and other tax cuts
21 Sep 2022
Decree-Law 7/2022 was approved yesterday, 20 September, as announced by the President of Andalucia on Tuesday, and published today.
The leading measure is the elimination of the Wealth Tax applying a 100% allowance. Wealth Tax is a tax on the net value of the assets owned, being Spain the only country within the EU where it is of application. Spain is divided in 17 autonomous regions and this tax is completely shifted to regional governments. Currently, Madrid and Andalucía are the only regions with no wealth tax.
This allowance is in force in this fiscal year 2022, so the last Wealth tax due was the tax paid in June 2022 for year 2021. The measure has been approved in a Decree-Law and not an ordinary Law, in order to assure it is immediately applicable for this year.
Another measure is the deflation of the two first bands of Personal Income Tax rate, to counteract the salary increase, extended as well to the personal and family allowances for the taxable base.
The Government has also suspended the water levy for 2023 only.