Spain’s fragile coalition government is facing a new row over a proposed 2% annual tax on the country’s wealthiest residents.
The staunchly left-wing government partner, Sumar, is demanding a so-called ‘Zucman tax’, aimed squarely at individuals with assets exceeding €100million.
According to calculations from the Ministry of Social Rights, the measure could raise up to €5.2 billion per year. This money, they say, could fund a universal benefit to combat child poverty.
But inside government, the mood is anything but united.
The proposal would apply a 2% annual levy on fortunes above €100million. It is inspired by economist Gabriel Zucman, whose work on global wealth taxation has gained traction in progressive circles.
Following a meeting in Paris with Zucman and his team, Social Rights Minister Pablo Bustinduy publicly backed the idea, arguing that taxing extreme wealth could finance a universal child support payment in Spain.
It is estimated that around 500 individuals in Spain hold fortunes above the €100 million threshold.
However, Spain’s Treasury Ministry has distanced itself from the proposal, describing it as an announcement from Sumar that has not even been negotiated within the coalition.
Sources close to Finance Minister Maria Jesus Montero warned bluntly: ‘There are no parliamentary majorities to change taxation.’
It comes after the government has already suffered fiscal defeats in Congress, particularly due to wavering support from parties such as PNV and Junts.
The debate is further complicated by timing. In 2026, the temporary windfall tax on banks is due to expire, potentially leaving a €1.4 billion gap in public finances based on projected revenue.
While the tax on large fortunes, currently applied to assets above €3 million, was extended indefinitely pending a broader review of wealth taxation, the banking levy was always temporary.
That looming shortfall has reignited internal discussions about how to increase revenue without triggering another parliamentary backlash.
Sumar is looking to France as a model, where a similar tax was fiercely debated during budget negotiations but was ultimately rejected by the French National Assembly.
Spain’s Congress has also recently blocked other fiscal initiatives, including extending the temporary tax on energy companies and raising diesel taxes.
