Category Taxation in Spain

Spain Needs Considered Tax Changes

July 14, 2014 Taxation in Spain

MADRID – Spain needs to ensure that any upcoming tax changes are directly aimed at helping boost employment levels and economic production in the near future.

Even though Spain is seeing a resurgence of economic growth, the national government could still take more steps to foster economic growth and boost employment levels, while collecting greater levels of tax revenues, according to the results of a new assessment of the Spanish economy released late last week by the International Monetary Fund.

The experts of the IMF noted that Spain has now “turned a corner” and is seeing an improvement in its economic growth after years of austerity and muted economic activity.

It was also noted that the already seen improvement could be expanded even further through careful adjustment of the t...

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Spain to Institute Tax Cuts

June 22, 2014 Taxation in Spain

tax cut in spainMADRID – Taxpayers in Spain are about to the see their total tax bills fall by a total of as much as EUR 7.6 billion, as the government moves to cut taxes for companies and individuals.

On June 21st the Minister of Finance of Spain Cristobal Montoro announced that the government will cut the rate of personal income tax and corporate income tax, after several years of heavy austerity measures and tax rises.

The tax cuts will take place over the course of the next two years, and will see the rate of corporate income tax fall from 30 percent to 25 percent.

At the same time as the corporate tax cuts, the taxes for individuals will also fall, as taxpayers with incomes exceeding EUR 300 000 will see their marginal tax rate fall from 52 percent to 45 percent, while individuals earning EUR 12 45...

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Spain Plans to Cut Tax

February 3, 2014 Taxation in Spain

Mariano RajoyMADRID – Spain will reform the national tax system, giving room to cut taxes within years.

Tax rates in Spain will be cut over the next two years, and, at the same time, new jobs will be created, while economic growth increases, according to information given by the Prime Minister of Spain Mariano Rajoy in speech delivered on February 2nd at a convention of the Popular Party.

Presenting his speech to the members of the congress of the ruling national party, the Prime Minister claimed that the tax cuts would be made possible by the implementation of an extensive reform of the tax system, intended on making tax regulations simpler, straight forward and fair.

According to Mariano Rajoy, the potential reforms will be begin to be implemented in the very near future, and the changes will signifi...

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Austreity Measures Feed Grey Economy

January 30, 2014 Taxation in Spain

Grey Economy in SpainMADRID – The combined negative effects on the economy of government austerity measures, ongoing global financial turmoil, and a collapse in the national housing market, have fueled the grey economy in Spain.

On January 29th the trade union group Gestha issued a new statement revealing that the combined value of all financial and business activity in the Spanish grey market now accounts for nearly a quarter of the national GDP.

By using data collected from the Ministry of Finance of Spain, the experts of Gestha found that in 2012 the underground economy in the country was worth approximately EUR 253 billion, 24.6 percent of the GDP at the time, and since 2008 grey economic activity in Spain has grown at an alarming rate of at least EUR 15 billion per annum.

As one of the most noticeable ind...

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Tax Breaks Announced in Spain

January 16, 2014 Taxation in Spain

Tax in SpainMADRID – Spain will use tax breaks for businesses and investors to boost national economic growth.

The government of Spain is actively looking at new measures to revive growth of the national economy, and will soon offer tax breaks for small businesses, provide tax concession for investors, and will cut corporate income tax, according to a new statement issued by the Ministry of Finance on January 14th.

Businesses in Spain with turnovers below EUR 10 million per annum will now be eligible for a 10 percent discount on their income tax obligations, a move which will reduce overall tax payments by as much as 600 million per year.

From the start of this year angel investors will also be given a 20 percent discount on taxes on income taxes owing for the profits derived from investments of a...

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