Andalusian President, Juanma Moreno, insisted today on the message that the new Andalusian tax system makes the community an ideal place of residence for high-income earners who now have a tax home in Catalonia, Portugal, the United Kingdom or Morocco. A strategy in which the abolition of the wealth tax and the IRPF cuts adopted since 2018 play a key role.
Oblivious to the blisters being raised in the Catalan government, the speech he has made since announcing a 100% bonus in assets on Monday, Moreno intends to redirect The office that the council intends to open in Barcelona Since 2020. In addition to a corporate representative, there will be tax and business advisory that translates Guanma Moreno’s messages into action. It will not be a political position but obviously a ‘commercial office’.
In San Telmo they explained that the financial pressure in Catalonia has increased in recent years. Until now, the only way to avoid heritage has been to stay abroad or in Madrid. But this second option could have a cost in Catalan society. This cost is not if the transfer of residence to Andalusia.
So far, the taxpayer who paid his property in Andalusia (with goods worth over €700,000) has spent more than 4500 euros on average.
Not just vacations
In addition, the accounts of the Andalusian CEO go through the appropriation of several people who now have a home in Andalusia as a second home, as tax residents in United Kingdom, Morocco or Portugal. The wealth tax was a serious inconvenience to attract those high incomes, and they would advertise their assets not in Spain, but in the world, and they would pay taxes on them.
He insisted that the target was not billionaires. Not just at least. High average incomeAs successful liberal professionals, they are also on the Andalusian radar.
It is also taken into account that with the advent of remote work, many CEOs settled in Andalusia, without moving his financial home. The new tax conditions in society can make them change their minds and take the step.
Heritage constitutes barely 0.6% of Andalusia’s total holdings
The inheritance tax abolished by Andalusia collected approximately 95 million euros 20,000 taxpayers. It represents 0.6% of the total collection in Andalusia which exceeds 17.000 million euros. In the government, it is estimated that 7,000 high-income families who were captured will be compensated for the 95 million waived through personal income tax.
Previous Experience
This effect was already appreciated when inheritances and donations were cancelled. “Reducing taxes does not mean collecting less. It’s not an experiment, we have a real test platform with previous actions, on which we have achieved nearly 300,000 taxpayers and 1,100 million others. “We are dedicating more resources to improving public services and the welfare state,” Moreno said today at an event with business organizations in San Telmo.
It also avoids high rental flight. Moreno cited again the example of 2019, where half of the 20 largest taxpayers stopped residing and paying taxes in Andalusia, most of them bound for Madrid. With 10 taxpayers losing, 3.5 million lost in inheritance, and worse, 14 lost in personal income tax.
Effect
In the executive branch, it is also clear that eliminating legacy has a huge impact when it comes to centralization Andalusia as a destination investment.
“the original mental revolution. Andalusia leads the debate on tax cuts. How many times did Andalusia lead an economic debate? When did you look head-to-head at societies like Madrid? It rarely happens. It is Andalusia’s pioneer, strong, proud, aware of its weaknesses and its potential. All this echo makes investors, entrepreneurs and capital take notice of us, and this is a positive thing. We are currently Ansar with the reforms that our country needs,” Moreno told representatives of Andalusian businessmen.
“We are already The second society with lower taxesOnly Madrid is in the lead. Three years and eight months ago we were in the lower middle. Many have talked about financial hell with arguments and reasons. Today we are seconds. We aspire to be the first, but Madrid has higher income levels and is in a completely different situation. But this is the way to Correction of the Andalusian path economically and socially.”
Moreno also insisted that he will defend ‘Strongly in court’ Any “interference” in the Andalusian financial independence.
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