The EU Commission weighs possible EU-wide wealth tax

Brussels – A European wealth tax? The EU Commission cannot impose or collect it but does not rule it out in principle. On the contrary, it is working on it. The topic, a very slippery one and the subject of a heated political debate in countries like Italy, which has always rejected the idea of a wealth tax, is raised by Fabio De Masi, MEP for the Non-attached Members, who asks a question on the imposition of an EU-wide minimum tax on high net worth individuals — a wealth tax, in essence.

When questioned, the Commission cannot remain silent, and Wopke Hoekstra, responsible for Climate and Clean Growth, speaks on behalf of the College. “In December 2024, the Commission launched a study on wealth-related taxes,” the commissioner recalls. “This study should be concluded before the end of 2025.” There is no categorical ‘no’ to imposing wealth-related taxes; however, the ultimate goal is to ensure accuracy. “The Commission considers that to address the issue of effective taxation of high-net-worth individuals, a better understanding of the topic is needed.”

Taxation and tax collection are and remain the responsibility of member states, and the Commission cannot replace national governments where the Treaties on the Functioning of the Union do not confer powers or without a clear mandate from the Member States. However, an international blueprint outlined by the G20 leaders’ declaration emphasizes the need for greater fiscal fairness. The Commission intends to proceed along this path.

Hoekstra clarifies that the study the von der Leyen team initiated “should provide further information on the overall context and the effectiveness of wealth-related taxes targeting high-net-worth-individuals in both EU and non-EU countries.”

At the European level, however, the debate is beginning to be revived and gain momentum. The European Tax Observatory, the consortium set up to combat tax avoidance and evasion in the EU, recommended in a document that the Europe of States should impose a wealth tax, noting that such taxes, among other things, “would also strengthen tax consent, trust in government, and ultimately the social model of EU democracies.” Not to mention the economic returns for the Union and its functioning. The same observatory calculates that a tax of even 2 percent on the 499 richest Europeans would bring 42 billion a year into the EU coffers.