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  • Prime Minister Pedro Sanchez (L) and Deputy Prime Minister Pablo Iglesias, Spain, Oct. 27, 2020.

    Prime Minister Pedro Sanchez (L) and Deputy Prime Minister Pablo Iglesias, Spain, Oct. 27, 2020. | Photo: Twitter/ @el_pais

Published 27 October 2020
Opinion

Over the next year, public investment in education will increase by 70 percent with a rise of US$608 million in scholarships.

Spain's Prime Minister Pedro Sanchez and Deputy Prime Minister Pablo Iglesias Tuesday agreed on an increase in corporate tax, wealth tax, and personal income tax for large fortunes and big companies.

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They agreed to increase the corporate tax for large business groups, through a limitation of exemptions for dividends and capital gains generated by their participation in subsidiary companies.

The Government raised the personal income tax by two points if income exceeds US$354,750 and three points if it surpasses US$236,500.

In addition, the new tax policy establishes a minimum tax rate of 15 percent for listed real estate investment companies (SOCIMIS), a type of company that uses large capitals to save taxes.

Sanchez and Iglesias also approved the 2021 State Budget, which provides a significant boost to sectors particularly damaged by the COVID-19 pandemic such as trade and tourism, and presents a record public investment of US$284 billion.

Public investment in education will increase by 70 percent with a rise of US$608 million in scholarships and US$1.8 billion in four years for the modernization of vocational training. 

Investment in infrastructure will get a rise of 115 percent with US$7.2 billion more than previous years, and the budget for industry and energy will increase by about US$6.7 billion.

"These are progressive budgets, indispensable for the modernization of our country... After the hard blow of the pandemic, we could either retreat with cuts or get ahead with determination," Sanchez said.

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