A recent article in El País highlights record earnings by Spanish families from investments and rental income (read it here). But behind the headlines lies a deeper truth: these gains are not evenly shared—they are concentrated among the wealthiest households.
New data from the Spanish Tax Agency shows that those earning over €600,000 now receive most of their income from capital, not work. Meanwhile, lower- and middle-income families rely almost entirely on employment—over 90% of their income comes from wages. Yet work is taxed more heavily than wealth. Those with the means to shift income types can also minimise their tax burden.
This is a structural inequality, not a statistical accident. And it’s worsened by how we report the data. “Spanish families” are treated as a single group, hiding the realities of monomarental households, immigrants, women, and racialised communities—groups far less likely to benefit from capital income.
If we want fair tax policy, we need clearer data and a fairer system. That means taxing capital and employment more equally, ensuring those who earn more pay more, and raising the personal allowance to protect low earners.
Until then, we are not measuring prosperity—we are documenting privilege.
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