IREF Europe - Institute for Research in Economic and Fiscal issues

Fiscal competition
and economic freedom


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Fiscal competition and economic freedom
https://en.irefeurope.org/686


Spanish tax reform undermines real estate market

Everything seems to go wrong in Spain and Madrid’s policy to achieve broader deficit reduction targets looks inappropriate. The Spanish government’s introduction of new legislation to restrict interest deductions for taxation purposes could further reduce the flow of international capital into domestic commercial property, exactly at a time when the depressed local market is an important factor weighing on Spain’s recession-hit economy, the European Public Real Estate Association (EPRA) said.

This fiscal reform is part of a broader range of new legislation (we wrote more about it here) as a reaction against a general erosion of the taxable bases of Spanish companies.

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