Fundación Civismo reports rising tax burden in Spain

A study by Fundación Civismo indicates that the tax burden in Spain has reached a point where the ‘Tax Liberation Day’—the date when citizens begin working for themselves rather than for the treasury—fell on August 18. This marks a significant shift from 15 years ago when the date occurred in early May.

In the Canary Islands, the tax burden consumes 229 working days per year, which is two days less than the Spanish national average of 231 days. For an average worker with a gross annual salary of €32,446, the total labor cost is €42,390.70. Of every €100 of labor cost, only €58.30 reaches the worker as net salary, while the remainder goes toward social security and personal income tax (IRPF).

Albert Guivernau, director of Fundación Civismo, noted that tax revenue has grown by 10%, doubling the 5% growth rate of the GDP. He warned that this disparity, combined with inflation, creates a ‘hidden inflation’ effect where nominal wage increases push taxpayers into higher brackets, effectively reducing their purchasing power.