Large Fortunes Tax in Spain. Is it constitutional?

Oct 16, 2023 | AEAT, Financial planing, Financial Planning | 0 comments

The Temporary Solidarity Tax on Large Fortunes (called the “Large Fortunes Tax”), since its creation, raised doubts about its constitutionality and was susceptible to being challenged by the bodies authorized to do so. Now, after 5 unconstitutionality appeals, the Constitutional Court proposes defining the constitutionality of the tax before the end of this year.

The Great Fortunes Tax – Solidarity Tax

The Large Fortunes Tax is a direct, personal, and complementary tax to the Wealth Tax. The tax is levied on the net assets of individuals with an amount greater than 3,000,000 euros. Likewise, the Large Fortunes Tax is applicable, for the moment, to the fiscal years 2022 and 2023.

In this sense, it is worth remembering that the Large Fortunes Tax is temporary because it was approved as an extraordinary measure, by the State Government, to ask large fortunes to make a greater effort to benefit the general interest, because of the economic conditions derived of recent world events.

Unconstitutionality Appeals

Because of the approval of the Large Fortunes Tax, various unconstitutionality appeals were presented by the Junta de Andalucía, the Community of Madrid, the Xunta de Galicia, Murcia and the Assembly of Madrid.

The organizations that have filed appeals against the Large Fortunes Tax allege that the tax violates the principles of legal security, economic capacity and non-confiscatorial nature provided for in the Spanish Constitution, as well as the political and financial autonomy of the autonomous communities. In short, beyond the violated principles, it is alleged that there is a conflict of jurisdiction with the autonomous communities in relation to the Wealth Tax, since it should be remembered that the Large Fortunes Tax is complementary to the Wealth Tax.


If the appeals presented are upheld, the rule that regulates the Large Fortunes Tax (contained in Law 38/2022, of December 27) would be declared unconstitutional and, therefore, it would be declared void with general effects throughout the Spanish territory. Considering the scope of this tax, the decision of the Constitutional Court will have a great impact and high significance within the Spanish tax system.


If the Large Fortunes Tax is declared unconstitutional before the end of the year, the Tax Agency must return to taxpayers the fees paid for the 2022 financial year.


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