Spain To Introduce Bank Deposit Tax

By Editorial 10 July, 2014

Spain will levy a 0.03 percent tax on banking deposits, Soraya Saenz de Santamaria, Spain's Deputy Prime Minister, said after a meeting of the Council of Ministers.

Revenues worth about EUR375m (USD510m) are to be generated from the tax, half of which will be distributed among Spain's provincial authorities, which have newly been charged with more closely monitoring their own finances.

In 2013 the Government capped the tax rate on bank deposits in all of Spain's autonomous communities at zero percent to prevent the unilateral introduction of bank deposit levies. The Ministry of Finance was concerned that if regional authorities introduced high bank deposit tax rates it could cause instability in the banking sector, but said at the time that it was investigating taxing the sector.

The Spanish Government has already provided financial compensation to Andalusia, Extremadura, and the Canary Islands for earlier cancelling their regional bank deposit taxes.

Tags: Tax | Banking | Tax Rates | Spain | Expats |


News Archive