IEE criticizes the excessive tax burden on companies in Spain

Spain’s High Taxes: The Challenge to Economic Competitiveness in Europe and Beyond

In 2023, Spain recorded a historic high in tax collection, surpassing the figures of 2019 by approximately 50 billion euros. The Institute of Economic Studies (IEE) presented its Fiscal Competitiveness 2023 report, which highlighted the high tax burdens placed on companies in the country. The report emphasized that while Spain’s tax pressure was lower than the European Union average in 2022, it was still concerning for the country’s economic development.

The analysis pointed out that corporate tax accounted for 2.7% of GDP and Social Security contributions were at 9.5%, higher than the EU average of 3.3% and 7.1% respectively. The IEE noted that Spain’s fiscal effort was nearly 18% higher than the EU average, making it one of the OECD countries with the highest tax burden. Despite improvements from the previous year, Spain still lagged behind its ranking in terms of tax competitiveness among OECD economies, indicating a significant loss of fiscal competitiveness due to continuous tax increases imposed by the government.

The study also criticized property and personal income taxes in Spain, which were deemed unfavorable compared to other OECD countries. Property taxation in Spain ranked second worst after Italy, while personal income tax was noted to be 6.1% higher than the EU average and 2.2% above the OECD average, further contributing to the overall tax burden faced by individuals and businesses in the country.

Overall, Spain’s high taxes continue to be a challenge for economic growth and competitiveness within Europe and beyond.

In conclusion, despite improvements from previous years, Spain is struggling with a significant loss of fiscal competitiveness due to continuous tax increases imposed by

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