BackAccording to the report of the General Intervention of the State Administration (IGAE) corresponding to August 2024, the revenue obtained this year from the Temporary Solidarity Tax on Great Fortunes (ITSGF) has suffered a drastic drop, from €619 million in 2023, the year it was implemented, to only €38 million. This decrease is mainly attributed to the reactivation of the Wealth Tax (IP) in various autonomous communities, such as Madrid, Andalusia and Galicia.
For their part, the data from the Tax Agency show that, up to August 2024, they reflect this drop of 93.9% in the first eight months of the year.
The ITSGF is applied to net assets over 3 million euros, accrues on December 31 of each year, and must be declared between July 1 and 31 of the following year. In order to avoid double taxation, taxpayers are only taxed on the part of their assets that has not been taxed by their autonomous community in the IP. In this respect, a deduction is applied in the ITSGF for the payments already made for the IP, subtracting the amount paid in the latter from the amount to be paid for the new tax.
In 2023, most of the ITSGF collection came from large estates located in autonomous communities that applied partial or total bonuses in the IP, as in the case of the Community of Madrid, which accounted for 89% of the collection, with more than 550 million euros.
However, at the end of 2023, the Community of Madrid decided to reestablish the IP for assets over 3 million euros, with the aim of preventing the State from collecting this tax from high net worth individuals. Meanwhile, other autonomous communities, such as Andalusia, have given large taxpayers the option of paying IP tax in their own community or doing so through ITGSF.
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