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’s average. The report also forecasted a fiscal pressure of around 39%, indicating that new taxes and reforms affecting business taxation, savings, and investments have led to an increase in Spain’s overall tax pressure on companies and entrepreneurs.

The IEE pointed out that despite this increase in fiscal pressure, Spain’s Corporate Tax and social security contributions from businesses represent a larger percentage of GDP compared to the EU average. According to the Tax Competitiveness Index, Spain’s tax competitiveness has declined significantly in recent years, ranking among the worst within the OECD.

The report emphasized 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.

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. By doing so, it can better understand the impact of its tax policies on businesses and individuals.

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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