Spanish Firms Make Tax Contribution Above EU Average

Spanish companies pay more taxes than the EU28 averageCorporate taxes in Spain

According to Circulo de Empresarios (a bussiness leaders association), in 2018 Spain’s public spending is around historic levels in an environment in which the economy was growing at 2.7% interannual.

At the same time, public spending as a percentage of GDP is stabilising as the Spanish economy exceded its 2008 level of nominal GDP.

In terms of tax collection, the major differences with the EU28 focuses on income tax and social security payments, explained primarily by the high levels of unemployment and the submerged economy.

Moreover, medium and large companies accounted for 55.4% of the corporation tax collected in 2015.

In the OECD a tendency towards the reduction of corporation tax is being observed.

Increasing tax returns in Spain requires further reforms aimed at the creation of employment, the increase of the average size of companies and the reduction in the weight of the submerged economy.