• Sat. Apr 20th, 2024

Spain’s Fiscal Effort Outpaces EU as IEE Reports 39% Fiscal Pressure, But Tax Competitiveness Declines”.

BySamantha Jones

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

On Wednesday, the Institute of Economic Studies (IEE) announced that Spain’s fiscal effort is 17.8% higher than that of the European Union, with a forecasted fiscal pressure of around 39%, as indicated in their Tax Competitiveness 2023 report. The tightening of business taxation in Spain is expected to slow down economic growth, according to the president and general director of the IEE.

The report highlights the increase in tax revenue forecasted for 2023, which will exceed GDP growth, leading to a higher fiscal pressure in Spain. This increase in fiscal pressure is a result of new taxes and reforms that have been implemented, affecting business taxation, savings, and investments. Despite this, Spain’s overall tax pressure on companies and entrepreneurs remains higher than the EU average.

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. According to the Tax Competitiveness Index, Spain’s tax competitiveness has declined significantly in recent years, ranking among the worst within the OECD. The IEE points out 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.

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 dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

Leave a Reply