Breaking News

The Chiefs ultimately honor Andy Reid Jacobs Financial Honored as Family-Owned Business of the Year New $675k Program Provides Loan Assistance for Delaware Small Businesses Testing Clay-based Irrigation Technology in Gozo Could Drastically Reduce Water Consumption Strengthening Community Health with Wellness and Faith

On Wednesday, the Institute of Economic Studies (IEE) revealed that Spain’s fiscal effort is significantly higher than that of the European Union, with a forecasted fiscal pressure of around 39%, according to the Tax Competitiveness 2023 report. This increase in fiscal pressure is a result of new taxes and reforms that have been implemented, affecting business taxation, savings, and investments.

Spain’s overall tax pressure on companies and entrepreneurs remains higher than the EU average due to specific data showing that Spain’s Corporate Tax and social security contributions from businesses represent a larger percentage of GDP compared to the EU average. The Tax Competitiveness Index also highlights that Spain’s tax competitiveness has declined significantly in recent years, ranking among the worst within the OECD.

The IEE emphasizes that Spain’s regulatory fiscal pressure is significantly higher than the EU and OECD averages, particularly in the case of corporate tax and property tax. Personal Income Tax in Spain is also 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.

In order to support economic growth and investment, Spain needs to address its tax competitiveness and reduce regulatory fiscal pressure by comparing with other European and OECD countries. The report emphasizes this need for reforms to improve the competitive position of Spanish businesses within international markets.

Leave a Reply