Category Taxation in Spain

Tax Amnesty Flounders in Spain

December 3, 2012 Taxation in Spain

Tax Amnesty in SpainMADRID – Spain’s latest tax amnesty scheme has ended on a disappointing note, not even reaching half of its revenue target.

On December 3rd the Ministry of Finance of Spain released a statement announcing that its recent tax amnesty program has raised an additional EUR 1.19 billion in tax revenues for the debt stricken country, with participants declaring an average of EUR 37 800 of previously hidden assets and incomes each.

The tax amnesty program ran from June to November this year, and allowed Spanish taxpayers to officially disclose information about their undeclared assets to tax authorities in exchange for paying a reduced tax rate of only 10 percent on the previous five years of hidden income.

Taxpayers who took advantage of the amnesty program were also provided protection from cr...

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Spain Braces for Tax Hikes

September 28, 2012 Taxation in Spain

Spanish AusterityMADRID – Spain will introduce new taxes, remove tax concessions, and reduce government spending in the 2013 fiscal year.  

On September 27th the Spanish Council of Ministers unveiled the proposed budget for the next financial year, aiming to  address the country’s worsening financial situation and to meet the criteria set out for the country as part of its bailout package by the EU and IMF , through reductions in government spending and the introduction of new taxes.

Amongst the tax changes detailed in the budget is the removal of several tax breaks which are currently offered to businesses and private taxpayers.

If the measures in the budget are approved by Parliament, factories and manufacturers in Spain will also face a tax on the amount of carbon dioxide emitted into the atmosphere.

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Spain Prepares for More Austerity

July 13, 2012 Taxation in Spain

Tax Hikes, Spending Cuts Announced in SpainMADRID – After months of debate and media speculation, the government of Spain has confirmed that the country will soon face increased tax rates and further decreases in public spending as the government attempts to reign in its ailing fiscal situation.

On July 11th the Prime Minister of Spain Mariano Rajoy delivered a speech to Parliament, outlining austerity measures which will be implemented by Spain in its continued efforts to bring the country’s budgetary shortfall within EU limits within the next two years.

The Prime Minister explained that Spain will cut its budget deficit by nearly EUR 65 billion by using a mixture of tax hikes and spending cuts...

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Spain Looks At New Tax Hikes

June 27, 2012 Taxation in Spain

Spanish tax hikeMADRID – Spain is looking to eliminate some currently available tax breaks and raise tax rates on petrol and consumer goods in order to reduce the country’s spiraling budget deficit.

On June 26th the Treasury of Spain announced that the national government may soon need to raise taxes and implement a series of new austerity measures in order to reduce the country’s worsening financial situation. Explaining the country’s fiscal position, the Treasury released a statement, saying that over the month’s between January and May the government’s budget deficit reached a level of approximately 3.41 percent. The shortfall is already approaching the government’s deficit limit for the year of 3.5 percent.

The Treasury attributed the current level of the deficit to a series of monetary transfers made...

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Spain Needs Tax Hikes

May 31, 2012 Taxation in Spain

Spain Needs Tax HikesMADRID – Raising VAT and the rate of the income tax in Spain could lead to improvements in the country’s ailing fiscal position.

At a a press conference held in Madrid on 30th of May, the governor of the Bank of Spain Miguel Angel Fernandez Ordonez said that Spain may not meet its own targets for tax collection for the current year, and is likely to see a rise in government spending in 2012 much higher than previously forecasted.

Spain is currently aiming to lower its budget deficit to 5.3 percent of the national GDP in 2012, and further decrease it to an even lower level of 3 percent in 2013. However, according to Miguel Angel Fernandez Ordonez, the task will be “tremendously arduous” due to the country’s ailing microeconomic situation and low levels of tax collections.

The govern...

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