Spain continues to frustrate and confound in equal measure. We believe that it’s relatively small oil & gas industry makes it ripe for further tax raids, especially as the country veers to the left, which supports our Outlook Negative.
April 17, 2023
Europe - Mediterranean
Southwestern Europe, bordering the Mediterranean Sea, North Atlantic Ocean, Bay of Biscay, and Pyrenees Mountains; southwest of France.
Very simple Concession fiscal regime, with only corporate income tax payable, at a higher rate than other industries (35% rather than 30%). There is no royalty.
Spain aims to use its Next Generation EU recovery funds to transform the Spanish economy, especially through digitalization and greening of the economy, to achieve long-term increases in productivity and growth. Full financing is contingent on additional economic reforms beyond labour reform. Spain’s credit ratings remain stable, and issuances of public debt – especially for green bonds – have been oversubscribed, reflecting strong investor appetite for investment in Spain.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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