IDEAS home Printed from https://ideas.repec.org/a/hpe/journl/y2025v255i4p29-55.html

Integration of Wealth Taxation into Personal Income Tax: Evaluation of Reform Proposals in Spain

Author

Listed:
  • RUB N AMO CIFUENTES

    (University of Valencia)

  • RAFAEL GRANELL P REZ

    (University of Valencia)

  • AMADEO FUENMAYOR FERN NDEZ

    (University of Valencia)

Abstract

The Spanish tax system currently includes two taxes on the net wealth of individuals: the traditional Net Wealth tax, transferred to the autonomous communities, and the new Solidarity Tax on Large Fortunes, a state-level tax introduced at the end of 2022. This paper proposes three reforms aimed at integrating wealth taxation into the personal income tax, with the objective of simplifying the tax system and ensuring effective taxation of large fortunes. Using data from the 2021 Household Panel and microsimulation techniques, the revenue and redistributive impacts of these reforms are estimated. The estimation of the proposed reforms shows a considerable increase in public revenue and an improvement in the redistribution and progressivity of personal income tax, as it has a greater effect on high-net-worth individuals.

Suggested Citation

  • Rub N Amo Cifuentes & Rafael Granell P Rez & Amadeo Fuenmayor Fern Ndez, 2025. "Integration of Wealth Taxation into Personal Income Tax: Evaluation of Reform Proposals in Spain," Hacienda Pública Española / Review of Public Economics, IEF, vol. 255(4), pages 29-55, December.
    • Handle: RePEc:hpe:journl:y:2025:v:255:i:4:p:29-55
    as

    Download full text from publisher

    File URL: https://hpe-rpe.org/wp-admin/admin-ajax.php?juwpfisadmin=false&action=wpfd&task=file.download&wpfd_category_id=254&wpfd_file_id=5657&token=105dfc2b34092b8ae75d7234997ac9df&preview=1
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gabriel Zucman, 2024. "A blueprint for a coordinated minimum effective taxation standard for ultra-high-net-worth individuals," PSE-Ecole d'économie de Paris (Postprint) halshs-04947409, HAL.
    2. Gabriel Zucman, 2024. "A blueprint for a coordinated minimum effective taxation standard for ultra-high-net-worth individuals," Reports 006, EU Tax Observatory.
    3. Andy Summers, 2021. "Ways of taxing wealth: alternatives and interactions," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 485-507, September.
    4. Summers, Andrew, 2021. "Ways of taxing wealth: alternatives and interactions," LSE Research Online Documents on Economics 111867, London School of Economics and Political Science, LSE Library.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Glen Loutzenhiser & Elizabeth Mann, 2021. "Liquidity issues: solutions for the asset rich, cash poor," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 651-675, September.
    2. Fausto Corvino, 2026. "Should centimillionaires bear (most of) the burden of international climate finance?," Climatic Change, Springer, vol. 179(2), pages 1-19, February.
    3. Anders G Fr{o}seth, 2026. "Extensions to the Wealth Tax Neutrality Framework," Papers 2603.05277, arXiv.org, revised Apr 2026.
    4. Stefan Bach & Florian Wichers & Tony Mudrack, 2026. "Vermögensteuer Die Linke – Aufkommens- und Verteilungswirkungen: Forschungsprojekt im Auftrag der Fraktion Die Linke im Bundestag, der Fraktionsvorsitzendenkonferenz der Fraktionen Die Linke in den Landtagen und der Rosa-Luxemburg-Stiftung," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 127, number pbk211.
    5. Carlotta Balestra & Jakub Caisl & Luiz Hermida, 2025. "Mapping Trends and Gaps in Household Wealth across OECD Countries," LWS Working papers 51, LIS Cross-National Data Center in Luxembourg.
    6. David Burgherr, 2021. "The costs of administering a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 677-697, September.
    7. Arun Advani & Helen Miller & Andy Summers, 2021. "Taxes on wealth: time for another look?," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 389-395, September.
    8. Theo Palomo & Davi Bhering & Thiago Scot & Pierre Bachas & Luciana Barcarolo & Celso Campos & Javier Feinmann & Leonardo Moreira & Gabriel Zucman, 2025. "Tax Progressivity and Inequality in Brazil: Evidence from Integrated Administrative Data," Reports 009, EU Tax Observatory.
    9. Emma Chamberlain, 2021. "Who should pay a wealth tax? Some design issues," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 599-613, September.
    10. repec:hpe:journl:y:2025:v:253:i:2:p:91-127 is not listed on IDEAS
    11. De Rosa, Mauricio & Vilá, Joan, 2026. "Taxing the rich in Latin America: Effects of a wealth tax on revenue and distribution," Economic Analysis and Policy, Elsevier, vol. 90(C), pages 1440-1466.
    12. Anders G Fr{o}seth, 2026. "From Gravity to Confinement: Wealth Redistribution as Optimal Drift Design in the Fokker-Planck Framework," Papers 2607.06153, arXiv.org.
    13. Advani, Arun & Summers, Andy, 2022. "Measuring and taxing top incomes and wealth," The Warwick Economics Research Paper Series (TWERPS) 1403, University of Warwick, Department of Economics.
    14. Arun Advani & Hannah Tarrant, 2021. "Behavioural responses to a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 509-537, September.
    15. Stuart Adam & Helen Miller, 2021. "The economic arguments for and against a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 457-483, September.
    16. Mauro Napoletano & Francesco Toni, 2025. "The Tartar Steppe of Italian Growth: Strategies for Renewal in a Slowing Europe," Working Papers hal-05391625, HAL.
    17. Quentin Parrinello & Giulia Varaschin & Gabriel Zucman, 2025. "Resources for a Safe and Resilient Europe: The Case for Minimum Taxation of Ultra-High-Net-Worth Individuals in the EU," Post-Print halshs-05046957, HAL.
    18. Dari-Mattiacci, Giuseppe & Immordino, Giovanni & Russo, Francesco F., 2025. "Fines for unequal societies," European Journal of Political Economy, Elsevier, vol. 86(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hpe:journl:y:2025:v:255:i:4:p:29-55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Miguel Gómez de Antonio (email available below). General contact details of provider: https://edirc.repec.org/data/iefgves.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.