• Wed. Apr 17th, 2024

Spain’s Fiscal Effort and Tax Competitiveness: A Comparative Analysis of EU and OECD Countries

BySamantha Jones

Apr 3, 2024
Spain’s fiscal effort outstrips EU average by 17.8%: IEE

On Wednesday, the Institute of Economic Studies (IEE) released its Tax Competitiveness 2023 report, revealing that Spain’s fiscal effort is 17.8% higher than the European Union average. The report also indicated that Spain is forecasted to face a fiscal pressure of around 39%, which is significantly higher than the EU average.

The tightening of business taxation in Spain is expected to slow down economic growth, according to the IEE president and general director. Specific data shows that Spain’s Corporate Tax and social security contributions from businesses represent a larger percentage of GDP compared to the EU average. This has led to a significant decline in Spain’s tax competitiveness, ranking among the worst within the OECD.

Despite this, personal Income Tax in Spain is above the EU and OECD averages and is more progressive in nature. Overall, the tax rate combined with Social Security contributions in Spain is relatively high compared to other countries. The report emphasizes the need for Spain to address its tax competitiveness and reduce regulatory fiscal pressure in order to support economic growth and investment. By comparing with other European and OECD countries, Spain can better understand the impact of its tax policies on businesses and individuals.

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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