Spaniards pay 39.3% in taxes on their salary, which is lower than Europeans

According to the OECD's 'Taxing Wages Report', Spaniars paid 39.

Spaniards pay 39.3% in taxes on their salary, which is lower than Europeans

According to the OECD's 'Taxing Wages Report', Spaniars paid 39.3% in taxes in 2021. This represents an increase of 0.3 points in tax pressure in one year. This is five points more than the average taxation in the 38 member countries of the organization. It was 34.6% in 2021.

It is however a fiscal gap of 2 points with the European average of 41.3%, which was at 41.3% in 2020. According to the report data, Spain is 16th in the list of countries with the highest fiscal pressure. This position was the same as it held in 2020. The top five countries in the table are Belgium (52.6%) Germany (48.1%) Austria (47.8%), France (47%), France (47%) Italy (46.5%). Portugal (41.8%) is also above 40%

While Spain has lower income taxes than neighboring countries like France or Germany, the Spaniards are almost ten percent less than those in France or Italy, even though they have similar rates. The report shows that 88% of total tax burden in our country is due to income tax and contributions from businesses to Social Security. This compares to 77% for the OECD.

Spain, on the other hand does not offer the same support to families with children as its European counterparts. These data show that Spaniards who have two children pay 33.8% in taxes. This is almost ten times higher than the OECD average (24.6%) and four points higher than Europe's average of 29.9%.

The OECD notes that the tax burden for a worker who has children is generally lower in all countries than it is for a worker without children, even if they have similar incomes. Most countries "provide benefits for families with children" via transfers or tax. It is evident that Spain is 8th in the OECD's highest tax burden for a married worker having two children. This is the same position as it was in 2020.

The fiscal situation and the economic environment have changed dramatically over the past 20 years. According to published data, the tax burden in Spain increased by 0.7 points between 2000 and 2021, from 38.6% up to 39.3% for an average worker. During the same time, the OECD tax burden increased by 1.6 percentage points from 36.2% up to 34.6%.

If you consider the changes in tax policy since 2009, the Spanish tax pressure has increased by 1 point, while the average OECD tax rate is the same, despite the increase it experienced in 2013.

NEXT NEWS