A new wealth tax introduced by Spain as part of measures aimed at easing the cost of living of ordinary Spaniards amid high inflation has raised 632 million euros ($676 million) this year, the Budget Ministry said on Wednesday.

In late 2022, the leftist coalition government introduced the temporary Solidarity Tax on Large Fortunes for 2023 and 2024, effectively banning regional exemptions from an existing wealth tax such as those practiced in Madrid, which in recent years has vied with Miami to attract Latin American fortunes.

The levy applies to fortunes greater than 3 million euros and can reach 3.5% depending on individuals' wealth.

A total of 12,010 wealthy individuals paid the new tax, representing barely 0.1% of all taxpayers in Spain, mainly in Madrid, but also in Andalusia and Galicia, the ministry said.

It said the additional revenue was "consistent with government forecasts which pointed to a tax collection potential of 1.5 billion euros on large fortunes" when applied to all regions.

Overall, Spain raised more than 1.8 billion euros in 2023 in taxes on large fortunes.

($1 = 0.9348 euros) (Reporting by Emma Pinedo; Editing by Andrei Khalip and Chizu Nomiyama)