Overview

• Banking associations AEB and CECA have filed a recurso contencioso-administrativo against the ministerial order approving the tax’s self-assessment and payment models.
• The progressive levy can reach up to 7% of banks’ income, replaces a temporary 4.8% wartime surcharge and is projected to generate about €2 billion annually.
• Unlike the previous war-time surcharge, the new tax can be passed on to customers, which banks say will raise financing costs for families and businesses.
• Banks emphasize that Spanish lenders are the only ones in Europe subject to this tax and point to a European Central Bank ruling against its application.
• They warn the levy could have unforeseen consequences for credit supply, solvency and the broader Spanish economy.