IEE criticizes the excessive tax burden on companies in Spain

Spain experienced a historic record in tax collection in 2023, surpassing the figures of 2019 by approximately 50 billion euros. Despite this, the Institute of Economic Studies (IEE) published its Fiscal Competitiveness 2023 report, which 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%, just below the European Union average of 39.1%, but still concerning for the country’s economic development.

The study emphasized that corporate taxation in Spain 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. However, social contributions to Social Security were slightly lower at 25.2% compared to the EU average of 17.7%. The combination of these taxes exceeded the European average by only 1 point, indicating some relief from previous years’ high tax burdens on individuals and businesses in Spain.

The IEE indicated that Spain’s fiscal effort was nearly 18% higher than the EU average, making it one of the OECD countries with a relatively low tax burden compared to other developed economies.

Despite improvements from previous years, Spain still lagged behind its ranking in terms of tax competitiveness among OECD economies, experiencing a decline over the last legislature due to continuous tax increases imposed by the government.

The report also noted that property taxation in Spain was unfavorable, ranking second worst among OECD economies after Italy.

Moreover, personal income tax was noted to be only slightly above average compared to other developed economies’ levels at an additional cost to individuals and businesses alike.

In summary, while there were some improvements made since previous years’ reports regarding fiscal competitiveness, Spain still faces challenges related to high taxes on individuals and businesses and unfavorable property tax policies compared to other developed economies worldwide.

By Aiden Johnson

As a content writer at newspoip.com, I have a passion for crafting engaging and informative articles that captivate readers. With a keen eye for detail and a knack for storytelling, I strive to deliver content that not only informs but also entertains. My goal is to create compelling narratives that resonate with our audience and keep them coming back for more. Whether I'm delving into the latest news topics or exploring in-depth features, I am dedicated to producing high-quality content that informs, inspires, and sparks curiosity.

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