For years there have been two Spains that are increasingly opposed from the point of view of tax treatment of wealth, and that reality is also obvious to foreign investors. The analysis of the arrival of foreign capital in our country shows how they shy away, with increasing intensity, from the autonomies that are characterized by taxing the possession or transmission of wealth, through high income tax brackets, or the application with hardly any Bonuses of the taxes of Patrimony, Inheritance and Donations.
On the other side of the spectrum, Andalusia and Madrid, the regions that have focused most intensely on curbing these tax figures, register increases of 107% (multiply by more than 2) and 20.4% respectively in the capital received from abroad in the same period.
Excluding the territories with a foral regime (Basque Country and Navarra) and those with a clear geographical particularity (such as the Canary Islands), the way in which investments in Catalonia, Aragon, the Valencian Community or Extremadura are withdrawn between 2017 and today (the choice of a five-year period is recommended by economists to observe trends).
Discounts of up to 40%
The figures from the Secretary of State for Commerce, dependent on the Ministry of Industry, show contractions that oscillate between 10% of Catalonia and 40% of Extremadura itself. In all these cases, these are very diverse territories with regard to their economic structure, but which have striking coincidences in terms of their fiscal policies.
In the first place, they have aggregate maximum marginal rates (adding the state and regional sections) of personal income tax that are among the highest in all of Spain, exceeding 49% and, therefore, they do not have deflation plans to compensate for the added tax that increases in the CPI represent year after year.
Moreover, the taxes of 54% from the Valencian Community and 50% from Catalonia are among the highest in their category in the OECD area as a whole.
Similarly, it highlights that all these territories are the most severe in terms of the application of the Wealth Tax. This last tribute has a tiny collection but it constitutes an anachronism that in Europe has been relegated to only three countries that negatively draws the attention of the citizens of other countries.
Since 2009, Madrid has been at the opposite end of the tax increase policies
In the case of Aragon, it has the lowest wealth tax exempt minimum in all of Spain, located at 400,000 euros, when the limit established by state regulations on this tax is at 700,000 euros. In addition, it only provides bonuses for taxpayers who suffer from a disability with a limit of 300,000 euros. In the case of the Valencian Community, Extremadura and Catalonia, the minimum exempt It is in the 500,000 euroswhich also places them as the territories that most penalize the possession of wealth.
Since 2009, Madrid has been at the opposite end of these policies, with a roadmap that has led it to subsidize Heritage at 100%, which is equivalent to its elimination in practice, in a generalized way for all taxpayers. In parallel, its maximum rate of 45% added to 45% in personal income tax. For years, this situation has attracted a volume of foreign investment that has grown at a rate of 20.4% in the last five years.
In this case, the capital effect is usually alleged, but the truth is that Andalusia, an autonomy that does not enjoy that plus, and that has a fiscal policy based since 2019 on reducing taxes, is increasingly attractive to foreign investors. Specifically, in the last five years, the resources received under this heading have more than doubled.