Spain´s tax structure in the context of the European Union

Series: Occasional Papers. 1810.

Author: David López-Rodríguez and Cristina García Ciria.

Full document

Spain´s tax structure in the context of the European Union (1 MB)

Abstract

This document describes the structure of the Spanish fiscal system in comparison with the
European Union economies. Spain is notable for the persistently lower weight of its tax
revenue relative to GDP compared with the EU28 average. This lower tax revenue/GDP
ratio is mainly due to indirect taxes (VAT, excise duties and environmental taxes); Spain
systematically has one of the lowest implicit tax rates relative to consumption in the EU28.
Regarding the taxation of labour, the attendant revenue relative to GDP is also lower than the
EU28 average, although the weight of social security contributions relative to GDP is higher, in particular the contributions charged on employees. The latter shows the lower fiscal pressure on labour income in respect of personal income tax in Spain. Spain evidences higher tax revenue on capital, in particular regarding wealth tax.