Spain’s post-pandemic recovery has emerged as a glimmer of positivity while most of Europe has been stuck in the doldrums. Boosted by tourism and a healthy labour market, the country’s economy has grown at an average rate of 3% since the start of 2024. That’s compared to 1% for the wider eurozone.
Despite this success story of recent years, experts are nonetheless sounding the alarm over Spain’s tax system. A labyrinth of inefficient policies, according to critics, risks undermining growth by deterring investors and wealthy individuals. “Spain has one of the most complex tax systems in Europe,” said Cristina Enache, global tax economist at the Tax Foundation. “The central government could learn some valuable lessons about sound tax policy from its regional governments and other European countries.”
