Taxes account for over 53% of labour costs in Spain, study finds
In 2025, Spain's Finance Ministry argued that its tax cuts for middle-income earners had delivered €38 billion in savings
A recent study by the liberal think tank, the Juan de Mariana Institute, reveals that public authorities consume over half of the total cost of employing an average worker in Spain. The institute estimates that taxes and social security contributions account for €53.60 for every €100 in labour costs, based on an annual labour cost of €39,481.
This economic autopsy of Prime Minister Pedro Sánchez's time in office, conducted by the institute's head of research, Diego Sánchez de la Cruz, also highlights a significant increase in tax revenues - up by 39.7% since 2018 - and an overall increase in public spending and debt. The report also discusses deteriorating public services, with rising healthcare spending, long surgical waiting lists, and subpar education, while also pointing to a housing crisis with median rent surpassing the median salary of a young worker.
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