Senator Rosa Galvez

International Examples of Wealth Taxes

Spain’s net wealth tax is a progressive tax ranging from 0.2 percent to 2.5 percent on wealth stocks above €700,000 ($775,000), with rates varying substantially across Spain’s autonomous regions (Madrid offers a 100 percent relief). Spanish residents are subject to the tax on a worldwide basis while non-residents pay the tax only on assets located in Spain. The net wealth tax makes up only 0.5 percent of total tax revenues.

Switzerland levies its net wealth tax at the cantonal level and covers worldwide assets (except real estate and permanent establishments located abroad). The tax rates and allowances vary significantly across cantons. First implemented in 1840, the tax now constitutes around 3.6 percent of total tax revenue.

Belgium introduced a limited wealth tax on securities accounts in 2019. The tax applies to holdings over €500,000 ($554,000) at a rate of 0.15 percent.

Italy taxes financial assets at 0.2 percent and properties held abroad at 0.76 percent.

In the Netherlands, the value of net wealth (excluding primary residence and substantial interests in companies) is included in the income tax, with effective tax rates ranging from 0.58 percent to 1.68 percent.

Argentina taxes those with assets worth more than $3 million CAD (this accounts for 9,000 to 12,000 people, or 0.02% of the population). The starting rate of the tax will be 2 percent for assets held in the country, rising to between 3.5 percent on assets over $45 million CAD. There is also a 5.25 percent tax for those holding assets in dollars abroad. Those who repatriate their assets held abroad within 60 days will benefit from a 30 percent discount. They hope to raise $4.5 billion CAD.

Norway levies 0.85% net wealth tax on a person’s global net wealth (i.e. irrespective of where the assets are situated) with 0.7 percent going to municipalities and 0.15 percent to the central government. The tax is triggered on net wealth exceeding NOK 1 500 000 (around $225,000 CAD). The basic rule is that the assets should be valuated at fair market value at the end of the calendar year. Thus, the net wealth tax base of e.g. bank savings and investment in shares must be valuated at December 31 each year. Certain assets are included in the net wealth tax base at a value less than fair market value. This e.g. the case for the person’s permanent residence which should be reduced to around 25% of fair market value. The value of shares is reduced to 80% of fair market value for net wealth tax purposes. Norway’s net wealth tax constitutes around 1.1 percent of its total tax revenues and dates to 1892.