Bolivia Enacts Tax on Large Fortunes Affecting Country’s 152 Wealthiest Residents

RIO DE JANEIRO, BRAZIL – Bolivian President Luis Arce, on December 29th, signed into law a tax on fortunes over 30 million Bolivianos (around 3.5 million euros), which will initially be levied on a total of 152 high net worth individuals.

The law was passed by Congress – where the (MAS – Movement towards Socialism) party supporting the Government is the majority – and establishes gradual percentages for tax payment: 1.4% for people with wealth valued between 30 and 40 million Bolivianos (3 to 4 million euros); 1.9% from 40 million (4 million euros) to 50 million (5 million euros); and 2.4% for larger fortunes.

It will be an annual and permanent tax levied on all Bolivian residents, including foreigners, as well as all those who have been in Bolivia for more than 183 days over the past 12 months.

According to the Bolivian government, this rule will raise 100 million Bolivianos for the state coffers. The opposition parties and Bolivian entrepreneurs have already reacted and consider this measure “an obstacle” to investment in the country.