Spain

Spain's Rankings
CategoryRankScore
Overall Rank2360.31
Corporate Taxes2253.89
Individual Taxes1471.65
Consumption Taxes1474.22
Property Taxes3243.17
International Tax Rules1974.89

Spain ranks 23rd overall on the 2019 International Tax Competitiveness Index, four places better than in 2018.


Strengths

  • Spain provides for net operating losses to be carried forward indefinitely, allowing for corporations to be taxed on their average profitability.
  • 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.

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, net wealth, and estates.
  • Spain has both a patent box and a credit for Research and Development.

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