Large corporate groups will see their current tax exemptions reduced on capital gains and dividends generated by their holdings in subsidiary companies. On the other hand, capital income above 200,000 euros is increased by three points in the personal income tax.
Also income from work above 300,000 euros per year will pay more tax, with a two percentage point increase in the current rate. This is the result of negotiations between Pedro Sanchez’s PSOE and Unidas Pode for the Spanish State Budget for next year, reports El Pais.
On the other hand, the real estate investment companies, Socimi – the equivalent of the Portuguese SIGI – now have a minimum tax of 15%.
The obligation to impose a minimum effective tax of 15% for large companies was left out, which was in the Government agreement established between the two parties, but which got in the way due to the crisis caused by the pandemic.
Unidas Pode also achieved an increase in the Public Indicator of Multiple Effect Yield (IPREM), an index used in Spain with reference to the allocation of subsidies or subsidies and which rises 5% next year.
The salary of civil servants and pensioners will be updated according to inflation.
The Spanish Government wants, on the other hand, to increase investment in health, with an increase of 151.4% in expenditure for this area.
The agreement between the two parties also includes a pact to control the values of real estate rents, something that is not included in the Budget, but that must be presented to Congress within a period of four months.
Both Pedro Sánchez and the second vice president, Pablo Iglesias, stress that with this Budget, cuts and austerity are left behind. “Today we inaugurate a new stage that leaves the neoliberal path behind,” said Iglesias, quoted by El Pais. “We left the adjustment phase behind,” said Sánchez, also according to the Spanish newspaper. “These are progressive budgets, essential for the modernization of our country”, he stressed. “After the very strong blow of the pandemic, this budget has an investment 10.3% higher than the previous one, including 27 billion of the European plan”.