• Sun. Apr 14th, 2024

Unprecedented Tax Collection in Spain: An Analysis of the Burdens on Companies and Fiscal Competitiveness

BySamantha Nguyen

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

In 2023, tax collection in Spain reached a historic record, surpassing the figures of 2019 by approximately 50 billion euros. The Institute of Economic Studies (IEE) presented its Fiscal Competitiveness 2023 report, highlighting the high tax burdens placed on companies in the country. The report noted that while Spain’s tax pressure was lower than the European Union average in 2022, it still posed a significant challenge to the country’s economic development.

The study emphasized the corporate tax in Spain, which accounted for 2.7% of GDP and Social Security contributions at 9.5%, higher than the EU average of 3.3% and 7.1% respectively. The analysis pointed out that social contributions to Social Security in Spain were significantly higher at 25.2% compared to the EU average of 17.7%, whereas 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.

The Tax Competitiveness Index revealed that Spain ranked poorly in terms of tax competitiveness among OECD economies, experiencing a decline over the last legislature despite improvements from the previous year. Despite this, Spain still lagged behind its 2019 ranking, indicating a significant loss of fiscal competitiveness due to continuous tax increases imposed by the government.

The report criticized the high taxes on companies in Spain, highlighting it as one of the most burdensome in the OECD, nearly

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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