Economic agreement and competency framework for the Basque Country / Spain
The financial and tax relations of the Basque Country with the rest of Spain are regulated by Economic Agreement Law 12/2002.
This law establishes the regulatory, management and tax collecting autonomy of the three Basque provinces (Araba, Bizkaia and Gipuzkoa) in terms of the main taxes, where the rules in force in the rest of the common territory are established as supplementary.
The competent institutions of the Basque provinces can maintain, establish and regulate their tax system within their territory. In order to manage, inspect, review and collect the agreed taxes, the competent institutions in the Basque provinces have the same powers and prerogatives as those of the Spanish tax authorities.
The distribution of competences for the main taxes based on the Economic Agreement Law is as follows:
TAXES COVERED BY AUTONOMOUS REGULATIONS | TAXES COVERED BY STATE REGULATIONS |
---|---|
Corporation Tax | Non-resident income tax |
Personal income tax | Value Added Tax |
Property tax | |
Inheritance tax | Special taxes |
Capital transfer tax | |
Local taxes | Electricity Production Tax |
In order to achieve tax harmonisation throughout the Spanish territory, the Basque provinces must use the following criteria:
5th edition · 2023