Spain
Category | Rank | Score |
---|---|---|
Overall Rank | 30 | 57.08 |
Corporate Taxes | 32 | 46.79 |
Individual Taxes | 19 | 61.26 |
Consumption Taxes | 10 | 74.46 |
Property Taxes | 36 | 36.44 |
Crossborder Taxes | 17 | 78.2 |
Spain ranks 30th overall on the 2021 International Tax Competitiveness Index, four places worse than in 2020.
Strengths
- Spain has a territorial tax system that exempts both foreign dividends and capital gains income from taxation.
- The Spanish tax treaty network is made up of 93 countries.
- Property taxes can be deducted against corporate income taxes.
Weaknesses
- The VAT of 21 percent applies to less than half of the potential tax base.
- Spain has multiple distortionary property taxes with separate levies on real estate transfers, net wealth, estates, and financial transactions.
- Spain has both a patent box and a credit for Research and Development.
Learn more about the tax system in Spain