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 average, with a forecasted fiscal pressure of around 39%. This is despite new taxes and reforms implemented in recent years affecting business taxation, savings, and investments.

According to the IEE president and general director, tightening business taxation in Spain will slow down economic growth. The report highlights the increase in tax revenue forecasted for 2023, which will exceed GDP growth, leading to a higher fiscal pressure in Spain. 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 Riley Johnson

As a content writer at newsmol.com, I dive into the depths of information to craft compelling stories that captivate and inform readers. With a keen eye for detail and a passion for storytelling, I strive to create engaging content that resonates with our audience. Whether it's breaking news, in-depth features, or thought-provoking opinion pieces, I am dedicated to delivering high-quality, informative content that keeps readers coming back for more. My goal is to bring a fresh perspective to every article I write and to make a meaningful impact through the power of words.

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