Spaniards had to wait until 20 August this year to reach the so-called Tax Freedom Day — the point at which, according to one think tank’s calculations, the average worker has earned enough income to cover their taxes and social security contributions.
According to a study by Fundación Civismo, a Spanish liberal think tank, the estimated burden was equivalent to 231 days in 2026, two more than last year. The foundation said the increase was not necessarily the result of explicit tax rises alone.
When Pedro Sánchez became prime minister in 2018, the foundation put the figure at 177 days, with Tax Freedom Day falling on 27 June. Since then, its estimated date has moved back by 54 days.
The foundation attributes the increase to income tax bands failing to keep pace with inflation, rising social security contributions, the return of some higher value-added tax (VAT) rates and new local levies. As a result, the foundation says workers are paying more of their income in taxes and contributions.
To calculate the tax burden, the foundation uses the total cost of employing an average worker, including contributions paid by both the employee and the employer. In its reference case, an employee earning a gross annual salary of €32,446 costs their employer €42,390.70 once employer contributions are included.
