Andalusia Scraps Wealth Tax to Lure Back High-Income Residents from Morocco

At a press conference on Tuesday, the Andalusia Council’s Economy and Finance Minister, Carolina España, explained the reasons that led the Andalusian authorities to take this measure that benefits 0.2% of Andalusians with the highest incomes. The Andalusian Council found that 10 of the 20 wealthiest people in Andalusia had stopped paying taxes in the community (region). They would have left the territory to settle elsewhere, such as in Morocco or Portugal.

For reasons of confidentiality and data protection, Carolina España said she could not reveal the identity of these 10 people who no longer pay their taxes. "It is a reality that we have stopped collecting the wealth tax and the personal income tax, because a very large proportion of citizens do not pay the wealth tax," she regretted.

In 2021, 44,000 taxpayers had left, despite the tax cut, a Spanish media reported. For now, there is no data on the impact of the new measure. "Within a year, we will surely be able to provide figures and verify that this measure is good for Andalusia," reassured Carolina España, stressing that "the abolition of the wealth tax has increased the number of taxpayers and the collection of personal income tax. This is a reality. There are many families who have returned".