Home Personal Finance Spain, At The Backside Of The OECD In Phrases Of Tax Competitiveness

Spain, At The Backside Of The OECD In Phrases Of Tax Competitiveness

Spain, At The Bottom Of The OECD In Terms Of Tax Competitiveness

Spain is amongst the international locations with the least aggressive tax system within the OECD. That is in line with the brand new version of the tax competitiveness rating ready by the Tax Basis, wherein Spain seems in thirty fourth place out of a complete of 38.

This place, which represents a lack of two locations in comparison with the 2021 version and eight in comparison with 2020, leaves Spain forward of solely Eire, Portugal, Italy and France, which repeats within the final place because it did the earlier two years.

Particularly, the Tax Basis offers Spain a rating of 56.9 out of 100. Among the many weaknesses of its tax system, it highlights that Spain applies the final VAT of 21% to lower than half of the potential consumption tax base, and warns that a number of property taxes “distort with separate levies on actual property transfers, internet price, inheritance and monetary transactions”.

However, amongst its strengths, it highlights that the Spanish tax system has tax treaties with 95 international locations and that it has a 95% exemption for earnings from overseas dividends and capital positive factors.

By kind of tax, Spain ranks thirty first in company taxation, twenty fifth in private taxation, nineteenth in consumption taxes, 18th in cross-border taxation, and second to final in property taxes.

On this final level, it’s price remembering that Spain is the one EU nation that presently has a wealth tax. In the meantime the one different European international locations which have one are Switzerland and Norway. Moreover, if the parliamentary course of is accomplished, the brand new solidarity tax will come into drive in 2023, in addition to the extraordinary taxes on banks and vitality corporations.

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