New taxation of savings income: The plundering of the middle classes continues

New taxation of savings income: The plundering of the middle classes continuesThe government has just announced a small reduction in personal income tax and savings income that comes into effect on July 1 of this year 2.015. In this article I will make a brief analysis of the new taxation of savings income along with a brief reflection on this measure and the abusive fiscal policy of this government on small savers.

Taxation of savings income before the reduction

The taxation of savings income before July 1 was as follows:

  • Up to € 6.000: 20%
  • From € 6.000 to € 50.000: 22%
  • Más de 50.000 €: 24%

Taxation of savings income after the reduction

The taxation of savings income after July 1 was as follows:

  • Up to € 6.000: 19%
  • From € 6.000 to € 50.000: 21%
  • Más de 50.000 €: 23%

Comparative table with the new taxation of savings income

This table summarizes the changes with the new savings tax:


Before 1/7/2005

From 1/7/2005

Up to € 6.000



From € 6.000 to € 50.000



Más de 50.000 €



Brief reflection on the tax cut for investors

This reduction will mean that a person with savings income of about € 1.000 per year goes from paying € 200 to € 190 in taxes or that a person with income of € 5.000 goes from paying € 1000 to € 950.

Ultimately, this measure is nothing more than crumbs to give an appearance of tax reduction that remains in borage water. Electoralism in its purest form.

What should the government have done?

If the government really wanted to help savers and the middle classes, it should have taken two steps:

  • First, recover the dividend exemption. The most regressive measure of the PP with respect to the taxation of savings income was the abolition of the € 1.500 exemption for dividends collected. A measure with a more social component could have been to recover this exemption, which especially affects small savers and can lead to a maximum saving of around € 300 per year per person.
  • Fulfill its promise to create the so-called “SICAVs of the middle classes”. It is totally unfair that only the rich can have efficient savings instruments. At the end of 2.013, the government announced the creation of savings accounts in which anyone could defer taxation as is the case with SICAVs to promote long-term savings. Finally, the government dropped the measure, making it clear how little we small savers care about us and only the rich being able to have a favorable taxation so that the gap between the richest and the middle classes continues to increase.

In summary, my opinion is that we are facing an electoral measure taken by a mediocre government that now intends to wink at small savers after more than 3 years stabbing us in the back.

That they get the 1% discount where it fits and really start thinking about stopping to plunder from small savers that money that we have so hard to earn.