Budget Minister Cristobal Montoro presents the Spain’s budget 2015, on September 31, 2014. There are a number of measures containing in this budget that aimed at stimulating economic growth, including reduction in the corporate and personal income tax rates.
Individual income taxes will be reduced by an average of 12.5 percent, with those on medium and low incomes being the main beneficiaries of the cuts. The main corporate tax, meanwhile, will be cut from the current 30 percent to 28 percent.
The Budget Minister said that the tax on wealth exceeding EUR700,000 (USD884,080) would be extended for one year though the budget deficit will be 4.2 percent next year (after an estimated 5.5 percent this year), taking the country’s public debt up to 100 percent of GDP. The Spanish Government’s tax revenue is expected to reach EUR186bn next year, up from the EUR177bn forecast for this year, Montoro said.
