Spain will unveil a wealth tax today as a temporary measure to make the rich pay more to help end the economic crisis.
Finance Minister Elena Salgado last night said the extra tax revenue will help Spain meet tough public deficit targets as it battles to avoid being sucked into a eurozone debt crisis.
The tax will affect around 160,000 people, raising up to €1.08bn per year, Ms Salgado said. The wealthy will pay more tax in 2011 and 2012 and the income will affect the 2012 and 2013 budgets.
Commentators see the move as a bid to win back left-wing voters fed-up with severe government austerity measures.
A wealth tax is under debate in other members of the 17-country euro bloc, such as Italy, France and Austria.