At a time when many governments are seeking new ways to raise revenue to confront growing deficits, so-called wealth taxes have returned to the center of debate. In her article for Expansión, Carlota Pastora analyzes how various European countries are reinstating — or expanding — taxes on net wealth, and what real effects these measures are having on investment, international mobility and economic stability.
The analysis questions whether these measures respond to a genuine pursuit of social justice or whether they have become urgent revenue-raising tools that create unintended consequences.
Wealth taxes: what really lies behind these levies?
The idea of taxing accumulated wealth is often presented as a mechanism to reinforce fiscal fairness. However, in practice many of these assets were already taxed when originally earned, raising the debate around double taxation and the impact on long-term investors.
Added to this is a recurring issue: when the tax burden increases, many mobile taxpayers choose to relocate to jurisdictions with more stable and predictable rules.
The real effect: capital flight, revenue forecasts and political decisions
The article reviews several recent cases. On the one hand, the French government’s decision to abandon the so-called Zucman tax for fear of major fortunes relocating abroad. On the other, Spain’s more subtle strategy, expanding fiscal control through new bank reporting obligations to detect high spending levels — something many see as a prelude to future wealth taxes.
Cases such as Norway show that increasing wealth taxation can lead to mass departures of taxpayers, ultimately reducing total revenue. It is no coincidence that of the twelve European countries that had a wealth tax in 1990, only three still maintain one.
Andorra and the attraction of capital toward fiscally stable jurisdictions
In contrast, countries that avoid penalizing wealth accumulation have strengthened their attractiveness. Andorra is one of the clearest examples.
Its system without wealth, inheritance or gift taxes has acted as a magnet for high-net-worth individuals from Spain and France.
This growth, however, has also generated internal challenges: housing pressure, rising prices and a forthcoming reform that will tighten passive residence requirements. Even so, legal certainty and fiscal stability remain its main comparative advantages.
International coordination and planning: keys for the future
Pastora’s analysis highlights that the solution does not lie in isolated measures or urgent levies that generate uncertainty.
What will truly shape the future is the existence of clear, predictable and internationally coordinated rules — especially in a world where high-net-worth taxpayers enjoy significant mobility.
Access the full article here: Impuestos a la riqueza: ¿justicia social o trampa recaudatoria? | Opinión
