Every year, Spain loses about €10 billion in tax revenue due to the widespread use of tax havens by both large corporations and wealthy individuals. €9 billion of this total is the result of taxes on corporate profits being shifted to jurisdictions with lower tax rates. Some of the most notorious tax havens include Bermuda, the Netherlands, Ireland, Switzerland, and Malta.
For comparison, in 2023, corporate tax revenue in Spain amounted to €35 billion, a decrease from €45 billion in 2007. This drop reflects a worrying trend of diminishing tax receipts, leading to fewer resources available for Spain’s public finances.
Currently, the corporate tax burden in Spain stands at just 2.8% of the country's GDP—this is 0.6 percentage points lower than the EU average.
The Discrepancy: While large Spanish corporations saw a 110% growth in profits since 2012, their tax contributions only grew by 63%. The causes of this discrepancy include the widespread use of offshore tax shelters, special tax incentives (which are slowly being reduced), and the ability of corporations to carry forward losses from previous years to offset current taxable income. An additional €1 billion is lost annually due to undeclared assets owned by wealthy Spaniards in offshore accounts. Even when such assets are identified, accessing these funds is a complicated and time-consuming process.
Spain ranks 15th globally in terms of losses from tax evasion, largely due to the country’s inadequate international coordination in addressing these issues. Worldwide, the total tax revenue loss is estimated to be €500 billion each year, with €175 billion coming from EU member states.
Top Corporate Tax Havens: British Virgin Islands, Cayman Islands, Luxembourg, Netherlands, Switzerland, Ireland
At the G20 Summit, Spain's Prime Minister proposed the introduction of a “global wealth tax” as well as a minimum tax for corporations. Currently, a minimum tax (set at 15%) has been introduced as part of Pillar 2 for large multinational groups, ensuring that these corporations contribute a baseline level of tax regardless of where they are based.
