Ada Colau proposed a new wealth tax targeting individuals with net assets exceeding one million euros during a policy address in Madrid. The proposed measure, introduced ahead of the November 29 general election by the Front Ampli coalition, aims to generate over 10.000 milions d’euros annually to fund public services and social welfare programs.
Ada Colau, former Barcelona mayor, reports on the fiscal platform unveiled at the Ritz hotel in Madrid, during an event organized by the Nueva Economía Fórum. Colau stated that the initiative draws inspiration from the international “Tax the Rich” movement, arguing that extreme wealth accumulation requires state intervention. Colau has been accompanied by Nacho Álvarez, former Secretary of State for Social Rights, who was responsible for the economic area of Podemos and who handled the presentation of the event. The event was also attended by representatives of the Sumar branch of the Spanish government, such as the Minister of Social Rights, Pablo Bustinduy; the Minister of Youth and Children, Sira Rego; and the Minister of Culture, Ernest Urtasun.
Presentamos la tasa TAX THE RICH desde el Ritz. pic.twitter.com/VeP6OH6ehr
How does the proposed wealth tax work in practice?
The Front Ampli proposal introduces a 2% annual tax on net assets above one million euros, which increases to 3% for fortunes exceeding 50 million euros. The coalition projects that the 1.200 largest fortunes in the country would contribute one-third of the total revenue generated by the bracket adjustments.
Spain already levies a regional wealth tax and a state-level solidarity tax on large fortunes instituted in 2022 for assets exceeding three million euros, with rates ranging from 1.7% to 3.5%.
What other corporate levies are included in the fiscal package?
Alongside individual wealth thresholds, the Front Ampli platform demands a comprehensive review of corporate tax deductions for major corporations and financial institutions. Colau pointed out that large banks and enterprises currently pay an effective tax rate of 6% to 7% on net profits, contrasted with small and medium-sized enterprises facing rates near 20%.
The coalition argues that corporate profits have risen by more than 80% over the past decade while corporate tax collection has remained largely flat. The broader reform package also incorporates a previously announced 10% levy targeting property owners holding four or more residential units who engage in rental market speculation.
Where will the projected revenue be allocated?
Front Ampli calculates that the combined fiscal reforms will yield upwards of 10.000 milions d’euros per year. Campaign documents and presentations indicate these funds are earmarked for reinforcing the public health system, improving public education, upgrading essential infrastructure such as the rail network, and stabilizing public pensions.
Colau specifically highlighted the situation of two million pensioners receiving roughly 900 euros per month, arguing that minimum benefit payouts should align more closely with the national minimum wage, which could reach 1,286 euros monthly by 2027.
What details remain unverified regarding the tax estimates?
While the coalition outlined broad revenue targets, independent verification remains difficult. Front Ampli has not yet published a detailed technical memorandum or granular breakdown supporting the calculation of the 10.000 milions d’euros revenue projection.
