Proposal for a 2% Minimum Tax on Large Fortunes Discussed in the European Parliament

A minimum tax of 2% for individuals with net worths of more than 100 million euros was among the options presented at the interparliamentary meeting organized in Brussels on October 12, 2026, by the European Parliament’s Subcommittee on Tax Matters (FISC). Members of the European Parliament, national parliamentarians, and experts discussed how large fortunes could be taxed more effectively. The debate will feed into an own-initiative report currently being prepared, without creating a new tax obligation.

In brief

1. The FISC meeting on October 12 examined options for taxing large fortunes without adopting a tax.

2. The model supported by Giulia Varaschin targets a minimum threshold of 2% for net worths exceeding 100 million euros, taking into account taxes already paid.

3. The estimate of approximately 67 billion euros annually comes from the authors’ research and depends on the model’s assumptions.

4. Experts discussed asset valuation, registers, liquidity, and relocation; the parliamentary report is still being prepared.

Giulia Varaschin, senior policy adviser at the International Tax Observatory, supports a mechanism that would ensure a minimum level of taxation relative to net wealth. This represents the value of assets after deducting liabilities. In the model described by the researchers, income tax and similar taxes already paid would be taken into account. The taxpayer would pay an additional amount only if that sum did not reach the minimum threshold, meaning that an extra 2% would not automatically be added for all individuals concerned.

The presentation’s argument is that very wealthy individuals can organize their assets in such a way as to generate little taxable income at the personal level. Retaining earnings in holding companies instead of distributing them as dividends is one of the mechanisms discussed. Varaschin also proposes better European coordination of information on assets and of the tax rules applicable when residence changes.

A research note from March 2025, signed by Quentin Parrinello, Giulia Varaschin, and Gabriel Zucman, estimates that the 2% minimum-tax scenario for fortunes exceeding 100 million euros could generate approximately 67 billion euros annually in EU member states. The estimate, reiterated in the October presentation, uses Forbes data from March 2025, a common assumption regarding the existing level of taxation of billionaires, and extrapolations for individuals with fortunes exceeding 100 million. It is a result of the authors’ model, not an amount collected or an official budget forecast by the European Commission.

Designing and administering the tax nevertheless raises concrete issues. Andrzej Robaszewski, director for fiscal policy studies and sustainable development at the CASE research center, presented difficulties such as valuing assets that cannot be sold quickly, accessing reliable registers, and protecting taxpayers’ liquidity. His analysis also addresses tax planning, proportionality, free movement, and the risk of double taxation in cross-border situations. The study’s conclusions belong to the authors, not the European Commission.

According to the Parliament’s press release published on October 13, some parliamentarians warned that a wealth tax could affect competitiveness and encourage wealthy individuals to relocate. The invited experts responded that there is little evidence regarding the scale of this effect in jurisdictions where such taxes have been applied. The discussion also addressed eliminating exemptions that could allow tax avoidance, as well as dividing measures between the national and European levels.

The parliamentary report on the tax framework for individuals with very high wealth is registered as an own-initiative procedure, 2026/2113(INI). The official file identifies Bruno Gonçalves, from the S&D Group, as rapporteur, while the Committee on Economic and Monetary Affairs (ECON) is responsible for the file. On October 19, the procedure was still awaiting a committee decision. Such a report formulates policy guidelines without itself establishing a tax.

Direct taxation remains primarily the responsibility of the member states. For harmonizing laws that directly affect the internal market, Article 115 of the Treaty on the Functioning of the EU provides for directives adopted unanimously by the Council, after consulting the European Parliament and the European Economic and Social Committee. This procedure does not represent a decision already taken to introduce the tax discussed by the experts.

Hypothetical revenues for member states must be distinguished from the financing of the EU budget. Creating a new category of own resources would require, under Article 311 of the Treaty, a unanimous decision by the Council and approval by the states in accordance with their constitutional requirements. For taxpayers in Romania and the other states, the FISC meeting does not in itself change existing tax obligations. The next step in the file under consideration remains the drafting of the parliamentary position.