Category Taxation in Spain

Spain to See Further Tax Hikes

April 30, 2012 Taxation in Spain

Taxes to rise in SpainMADRID – As protesters across the country continue to stand up against the continued austerity measures, the government of Spain is still looking at implementing a series of tax increases to raise much needed national revenues.

Over the weekend Spain saw an escalation in public protest regarding the plan of the country’s government to implement new austerity measures. The public protest were sparked after the Minister of the Economy of Spain Luis de Guindos revealed on Friday that the government would soon increase the rate of the Value Added Tax (VAT) and would conduct investigations into the feasibility of further changes to taxes.

Justifying the need for the tax hikes, the Prime Minister Mariano Rajoy said that Spain had no alternative such a decision, and he added that the economic sys...

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Spain Suffers Under Europe’s Highest Tax Rate

March 1, 2012 Taxation in Spain

Flying Spanish flagMADRID – Recent tax hikes in Spain have raised the fiscal obligations for taxpayers to the highest level in the countries of the European Union.

According to new research published on February 29th by the Cato Institute of Economic Development, Spanish taxpayers now face a personal income tax rate of up to 56 percent, following the implementation of a new tax hike announced in December 2011.

From the start 2012 Spanish taxpayers will face a top personal income tax rate of 52 percent, the third highest in Europe after Sweden and Belgium, which have top tax rates of 56.4 percent and 53.7 percent respectively. The report pointed out that if the calculations were to take into account local taxes imposed by regional governments in Spain, the top rate would be as high as 56 percent.

The researc...

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Spain to Instate Greater Tax Discipline

January 6, 2012 Taxation in Spain

Tax evasion in SpainMADRID – In 2012 the government of Spain will attempt to recover lost tax revenues by tackling tax evasion and conducting on-site inspections of businesses.

Speaking at a press conference following a meeting of the Cabinet of Spain on January 5th, the deputy Prime Minister of Spain Soraya Saenz de Santamaria confirmed that in 2012 the government will look to significantly cut public spending, and begin a renewed crack down on tax evasion carrying out a higher number of inspections of business places and closely scrutinizing businesses’ financial records.

The investigations conducted by tax authorities will pay particular attention to the payroll records of businesses, hoping to catch out employers paying employees in cash...

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Spain Needs Tax Reform To Lower Unemployment

December 21, 2010 Taxation in Spain

107:365 Spanish FlagA new report on the economic condition of Spain has been released, recommending several changes to the tax system aimed at ensuring a strong and sustainable economic recovery.

On December 20th the Organization for Economic Cooperation and Development (OECD) released its annual Economic Survey of Spain, which outlines the country’s economic standing and suggests several steps that could potentially improve future growth prospects. The report stated that throughout the financial crisis, Spain underwent similar economic declines as other developed nations. At the same time, the country is now experiencing unusually high unemployment levels, which are hampering the financial recovery. The unemployment figure is estimated to heave peaked this year at a level of 20 percent .

According to OECD ...

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Spanish Takeover Tax Break Illegal

October 29, 2009 Taxation in EUTaxation in Spain  No comments

The European Commission (EC) has declared that a tax break available to Spanish companies participating in corporate takeovers is illegal and should be revoked.

Following an investigation initiated in 2007, the EC concluded on the 28th of October that tax breaks received by Spanish companies completing corporate takeovers of non-Spanish entities within the European Union, are illegal. Instated in 2002, the law allowed Spanish companies to deduct the goodwill element of a takeover transaction. The EC has decided that it will require any instances of the tax break being utilized after the commencement of the investigation to be reversed. All transaction involving the tax scheme that occurred before December 21st, 2007, will not be altered.

The Spanish Government has made it clear that it is...

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