PROPERTY SEARCH
PROPERTY SEARCH
Spain proposes radical tax reform to target high-income earners and rental properties
The generated funds would be used to subsidise essentials in Spain such as nappies, electricity and public transport
One of Spain’s political parties Sumar, led by Labour Minister Yolanda Díaz, has submitted a radical tax reform proposal aimed at increasing costs for high-income earners, large estates and luxury goods, while reducing taxes on essential goods and services.
While the proposal is still in the very early stages, it does seem to line up with the budget goals of the President of the Government, Pedro Sánchez, who summed up his economic priorities for the new political year in one sentence: “More public transport and less Lamborghini.”
Presented on Monday September 16, Ms Díaz’s lengthy pitch includes the introduction of an ‘environmental solidarity’ tax on luxury goods such as private planes, yachts and high-end cars. Additionally, the party plans to tax “excessive margins” on food prices to reduce the cost of basic necessities.
The idea of hiking up costs for those in the luxury market is to use the generated funds to extend the public transport discounts which have been in place for the past two years throughout 2025.
Taxes on inheritances over 1 million euros and on capital income would also be increased, while VAT on essential goods and services, like hairdressers, veterinarians, nappies and electricity, would drop.
She also wants the tax on gluten-free food to be capped at the lower rate of 10%.
On the other hand, VAT on private education and healthcare would be raised, since the Minister feels they are paid for “mostly from high incomes”.
Increased tax on tourist apartments
Perhaps the most controversial of the measures, Sumar has suggested increasing the tax rate on tourist rentals to 21% and eliminating certain deductions landlords currently enjoy, with the aim of making holiday accommodation “drastically” less profitable for second home owners.
Furthermore, the party plans to implement a public social leasing program for electric vehicles and reduce domestic flights of less than two and a half hours with alternative train options.
Ms Díaz wants to implement more restrictions and regulations in response to “the massive arrival of mega-cruise ships to ports to combat pollution, the saturation of public services and guarantee the right to the city.”
Finally, the proposal includes raising the tax rate on traditional tobacco and expanding it for new types of tobacco, as well as a special tax on kerosene.
Image: Sumar
Sign up for the Spanish News Today Editors Roundup Weekly Bulletin and get an email with all the week’s news straight to your inbox
Special offer: Subscribe now for 25% off (36.95 euros for 48 Bulletins)
OR
you can sign up to our FREE weekly roundup!
Read some of our recent bulletins:
25% Discount Special Offer subscription:
36.95€ for 48 Editor’s Weekly News Roundup bulletins!
Please CLICK THE BUTTON to subscribe.
(List price 3 months 12 Bulletins)
Read more stories from around Spain:
Contact Spanish News Today: Editorial 966 260 896 /
Office 968 018 268
