Spain’s fiscal effort outstrips EU average by 17.8%: IEE

The Institute of Economic Studies (IEE) released a report on Wednesday, which revealed that Spain’s fiscal effort is 17.8% higher than that of the European Union, with a forecasted fiscal pressure of around 39%. This high level of fiscal pressure is due to new taxes and reforms that have been implemented, affecting business taxation, savings, and investments.

Despite this increase in fiscal pressure, 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 highlights 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 Sophia Gonzalez

As a content writer at newsgreg.com, I am dedicated to crafting engaging stories that captivate our readers. With a knack for turning complex topics into accessible and compelling narratives, I weave words together to inform and inspire. My passion lies in delivering accurate and thought-provoking content that keeps our audience informed and entertained. From breaking news stories to in-depth features, I strive to bring a fresh perspective to every piece I create. Join me on this journey of exploration and discovery through the power of words at newsgreg.com.

Leave a Reply