Contemporary wealth taxation in the EU: an effective tool in promoting the principle of fair taxation and limiting aggressive tax planning by high-net-worth individuals?

Abstract

The employment of wealth taxation in the European Union (EU) has gained renewed relevance in promoting fair taxation principle and addressing aggressive tax planning by high-net-worth individuals (HNWI). Yet, it remains unclear whether current wealth tax models effectively uphold fairness, reduce inequality, and deter planning practices. Hence, it is important to assess whether wealth taxation can serve as a fair and functional policy tool within the EU legal framework. Therefore, the evolution and interpretation of the fair taxation principle in EU law are examined. Secondly, wealth tax laws in Spain, France, and Italy are analysed to assess their design, enforcement, and fairness. Thirdly, the thesis explores HNWI tax compliance, the potential of wealth taxes to limit avoidance, and proposals for improving fairness through national policies. The results show that wealth taxation can enhance the principle of fair taxes and reduce planning risks, proving most effective when applied progressively, aimed at combating artificial transactions and aligned with national economic interests.