The Basque Country has legal and tax autonomy
The tax and financing system of the Basque Country, based on historical regional rights, has its town individual characteristics. Its uniqueness lies in the Statue of Autonomy, which states that relations of tax and finance matters between the Spanish State and the Basque Country should be regulated by the traditional regional system of the Special Economic Agreement or Conventions.
The Economic Agreement rules that the Basque Country has its town tax collecting system with the legislative and administrative capability that is normally held by the tax authorities of a state. It is the Agreement itself that contains all the appropriate rules for fiscal harmonisation that guarantee the even development of the different tax system of the Basque Country and the rest of Spain.
The Statute of Autonomy vests the Basque Parliament with an ample range of powers, allowing it to organize the Basque County’s government and dictate laws in a broad variety of areas.
The Spanish legislation grants each one of the 3 Basque provinces the ability to regulate most of their taxes through an internal tax system
- Corporate taxes are included amongst these
- The only requisite is that the fiscal effort is similar to that of the rest of Spain
- Only the Basque provinces and Navarre have this level of tax autonomy within the Spanish legislation