NEW TAX ON RICHES

A NEW tax implemented by the Spanish central government, named as Temporary Solidarity Tax on Large Fortunes, has got right ­ wing parties up in arms. According to Isabel Díaz Ayuso, head of the Madrid regional government led by the PP, this inopportune tax is going to have a serious twofold negative impact on foreign investment in Spain: loss of new investment and capital flight, calculated in the billions.

This tax initiative was implemented to counteract the elimination of wealth tax in Madrid and Andalucia and establishes the following tax bands, applicable to both tax residents and non ­ residents:

1.7 per cent to wealth between three and five million.

2.1 per cent to wealth between five and 10 million.

3.5 per cent to wealth

By Antonio Flores

Abogado/Lawyer LLM (Essex)Reg. Nº 4712 I.C.A. Málaga

E-mail: aflores@lawbird.com

Homepage: http://belegal.com/blog-byantonio-flores www.lawbird.com tax above 10 million.

There is evidence that Portuguese tax ­ specialist firms are holding meetings in Madrid to provide advice on moving residency to Portugal; also in Madrid, investment banks have leaked that Latin American fortunes looking to move to Spain are considering other countries.

In their defence, the