Private banks fear losing to the great foreign fortunes if the left wins on 23J

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Money is fearful and therefore the call for General Elections plays, by itself, against investment decisions. If to this is added the fact that the current government has approved a series of taxes contrary to large estates, the result is “dramatic”, according to sources in the sector consulted by EL MUNDO. The national private bank acknowledges that there is “a lot of concern” about the result of the elections and this has motivated foreign investors to intentionally delay their investment in Spain waiting to see who is victorious on July 23. It must be taken into account that only the assets managed by the twenty largest banks of great fortunes in Spain exceeded 600,000 million euros at the end of 2022, the equivalent of close to half of the national GDP.

The piedra angular of all this matter is known as Temporary Tax of Solidarity of Great Fortuneswhich taxes assets of more than three million euros, for a period of two years, and which was approved by the Executive at the end of 2022. It will have to be declared during the month of July under Model 718. Its temporary nature and “complementary”, according to the description made by the Tax Agency itself, is one of the reasons that leads those affected to think about the possibility of being victorious in case of appeal before the courts. If there is certainty in something, it is in the fact that this Tax will be appealed and different law firms and consultancies are already working on it, such as Cuatrecasas or E&Y.

One of the largest private banks in the country acknowledges that “at the time there were clients who considered leaving, there were inquiries and concerns, but the reality is that there have been very few cases that have left.” It is a general opinion among private bankers that, although they have had to answer their clients’ questions, few have decided to take their money elsewhere for various reasons. The main one is the rooting. “The changes of location are executed by those who have fewer family commitments and are the youngest, recent fortunes,” points out one of the sources consulted. In fact, Portugal it continues to be a pole of attraction for Spanish fortunes. “For many people It is still the friendliest autonomous community on the Iberian Peninsula“, they comment.

But beyond expelling the great fortunes of our country, the problem for private bankers is “lost opportunity to be the hub in Latin America, as in the case of Madrid. It is not so much what is lost as what can be stopped gaining”underline the sources consulted.

The great patrimonies hope, without a doubt, that a victory of the Popular Party – as predicted by the polls – will give them a breather. The commitment of the party led by Alberto Núñez Feijóo is to repeal this tribute, which is temporary for a period of two years and for which the Government expects to raise some 1,500 million euros each year, for a total of 3,000 million. He is a cast of the estimated collection through the Tax on the banking sector, which taxes the income of entities in 2022 and 2023 with 4.8%. The problem, say the managers of large fortunes, is that there is no development behind to determine if Is it a feasible objective or not “given the haste” with which this measure was approved at the end of the year, as added Tax on electricity and banks. In fact, the first substantive problems are already emerging that would benefit taxpayers in those communities where assets are subsidized, such as Madrid and Andalusia at 100% and in Galicia, at 50%.

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