• Sat. Apr 20th, 2024

Spain Celebrates Record Tax Collection, But Faces Criticism for Unfavorable Property and Personal Income Taxes

BySamantha Jones

Apr 3, 2024
IEE criticizes the excessive tax burden on companies in Spain

In 2023, Spain reached a historic record in tax collection, surpassing the figures of 2019 by approximately 50 billion euros. However, despite this achievement, the Institute of Economic Studies (IEE) presented its Fiscal Competitiveness 2023 report and criticized the high tax burdens placed on companies in the country. The report highlighted that tax pressure in Spain in 2022 was at 38.3%, which is still concerning for the country’s economic development.

The study emphasized that corporate tax in Spain was one of the main drivers of the country’s fiscal effort, accounting for 2.7% of GDP and Social Security contributions at 9.5%, both higher than the EU average of 3.3% and 7.1% respectively. The analysis also noted that social contributions to Social Security in Spain were significantly higher at 25.2% compared to the EU average of 17.7%, while corporate tax was slightly lower at 7.2%.

The IEE indicated that Spain’s fiscal effort was nearly 18% higher than the EU average, making it one of the OECD countries with the highest tax burden. Despite improvements from the previous year, Spain still lagged behind its 2019 ranking, indicating a significant loss of fiscal competitiveness due to continuous tax increases imposed by the government. The Tax Competitiveness Index revealed that Spain ranked poorly in terms of tax competitiveness among OECD economies, experiencing a decline over the last legislature.

The report further criticized property taxation in Spain as unfavorable, ranking second worst in the OECD after Italy. Additionally, personal income tax in Spain was noted to be significantly higher than both the EU and OECD averages by an average of 6.1% and 4%, respectively.

In conclusion, despite reaching a historic record in tax collection, Spain continues to struggle with high taxes on companies and individuals due to continuous increases imposed by the government and unfavorable property and personal income taxes compared to other developed countries.

By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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