New record: Spaniards on the islands exceed the education budget by2 times

The record amount of money held by Spaniards is located in offshore zones. This is evidenced by the report "Global Tax Evasion2024" from the European Tax Observatory. According to the EU Tax Observatory, the financial wealth of Spanish residents in offshore territories has reached an unprecedented amount of around140 billion euros. In absolute terms, this amount exceeds by two times the annual spending on education in Spain, which includes expenses of autonomous communities and amounted to55.265.8 billion euros in2020..

The report also proposes the introduction of a special tax on great wealth, which could generate up to €200 billion per year. It also shows that Spain missed out on approximately €4.5 billion in2019 due to the transfer of profits by multinational companies to countries with more favorable tax regimes. This demonstrates the need to take measures to increase revenue and combat tax evasion.

Despite the existing challenges, the report highlights significant achievements in the fight against tax evasion in recent years. The automatic exchange of information between countries has uncovered billions of euros hidden in tax havens, leading to a sharp decline in tax evasion among wealthy individuals. While at the beginning of the century, up to 95% of offshore financial assets were undeclared, this figure has now decreased to 27%.

However, the volume of financial assets in offshore zones continues to grow and exceeded 10.32 trillion euros in 2022. Switzerland, traditionally a primary destination for such capital, has become less attractive, while offshore centers in Asia, such as Singapore and Hong Kong, are gaining popularity.

The report also addresses the issue of offshore real estate, highlighting that it has become a "blind spot" in the exchange of financial information. It is estimated that about 25% of financial assets have been converted into real estate since the introduction of mandatory banking information exchange. The document focuses on six cities and specific areas where foreign individuals and companies own significant amounts of real estate, including London, Dubai, Singapore, Paris, the French Riviera, and Oslo.

Introduction of a tax on great wealth

The report suggests introducing a special tax on great wealth, which could bring in up to 200 billion euros per year. This would allow for increased revenue collection and help combat tax evasion. Such a tax could be an effective tool for reducing financial assets in offshore zones and increasing state income.

Fighting tax evasion

The report highlights significant achievements in the fight against tax evasion in recent years. Automatic information exchange between countries has uncovered billions of euros hidden in tax havens. The reduction in tax evasion among wealthy individuals indicates the need for measures to increase revenue and ensure fairness in taxation.

Global minimum tax for billionaires

The report suggests introducing a global minimum tax of 2% exclusively for billionaires. This could generate around 183.4 billion euros and help address the fiscal deficit of billionaires, whose fortunes have sharply increased over the past 25 years.

Losses from tax optimization schemes of multinational companies

The report highlights that the losses to states from tax optimization schemes by large multinational companies have not decreased. Almost 36% of the profits earned by these companies outside their country of origin are transferred to offshore zones every year. This calls for additional measures to combat tax evasion and ensure fair taxation.

Damage to the European Union

The European Union is one of the most affected regions by tax optimization schemes and tax evasion. Germany and the United Kingdom are at the top of the list of countries suffering from this issue, while Spain is losing 16% of its revenues. This calls for joint efforts and coordination among countries to combat this phenomenon and ensure fairness in taxation.