Spain's Constitutional Court endorses new wealth tax

The court rejected an appeal lodged by Madrid region which considered the levy infringed its regional prerogatives, the court said in a statement.

In late 2022, the leftist coalition government introduced the temporary Solidarity Tax on Large Fortunes for 2023 and 2024, effectively banning regional waivers on an existing wealth tax such as the ones Madrid had enforced, which in recent years has vied with Miami to attract Latin American rich.

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The levy raised more than 600 million euros this year, according to the Budget Ministry. Government spokesperson Isabel Rodriguez said the tax was important to achieve what she called a "fair taxation".

"To have a more socially cohesive country requires a fair fiscal policy, and this is what we have been working on during these years and would like to continue in the coming years," Rodriguez told reporters when asked about the judicial backing of the levy.

Acting Prime Minister Pedro Sanchez is negotiating with separatist Catalan parties to get their support for another term after inconclusive elections on July 23.