According to the latest data on tax revenue and its relationship to gross domestic product (GDP) in the European Union and the euro area, Spain collects significantly less tax than most of other European countries. As a ratio of GDP, in 2015 tax revenue accounted for 34.6 % of GDP in Spain, as compared with 40.0% of GDP in the European Union and 41.4 % of GDP in the euro area, says the latest report from the EU’s statistics office, Eurostat.
The ratio of 2015 tax revenue to GDP was highest in France (47.9 % of GDP), Denmark (47.6 % of GDP), Belgium (47.5 % of GDP) and Sweden (44.2%). Even such Mediterranean countries as Greece and Portugal surpass Spain getting 39.6% и 37% of their GDP from tax revenue correspondingly.
It is interesting to note that in absolute terms the ratio of tax revenue to GDP increased in the EU countries from 38.7% in 2005 to 40.0% in 2015, while in Spain the opposite tendency is witnessed as this figure decreased from 35.9% to 34.6%.
As for the value added tax (VAT), it constitutes only 6.5% of Spain’s GDP; less ratio of VAT to GDP is recorded only in Italy (6.2%) and Ireland (4.7%), says Eurostat.