The Basque institutions and the Spanish government agree to increase economic self-government

The Joint Committee of the Economic Agreement, in which the Basque Government, the Provincial Councils and the Government of Spain participate, has agreed on a reform of the Economic Agreement to increase Basque economic self-government.

The agreement, which covers approximately twenty articles and two additional provisions of the concert, will allow, for example, Basque institutions to participate in the international tax forums of ECOFIN and the OECD.

Moreover, Euskadi will have more decision-making power 14 taxes -including VAT and total autonomy for the Non-resident income tax.

The agreement was reached this Wednesday during a telematics meeting.

Until now, the non-resident tax, which is levied on people who do not live in Euskadi but earn income in the autonomous community (for example a foreign singer giving a concert in the Basque Country), has been subject to Spanish regulations. which limited its application to taxpayers with permanent economic activities in Spain.

This, for example, discouraged foreign investors benefit from tax incentives to promote the recording of audiovisual productions in Euskadi. The agreement reached today gives the Basque institutions autonomy to fully decide on this tax and could lead to an increase in foreign investment, as explained by sources from the Ministry of Finance and Finance.

The PNV spokesperson in Congress, Aitor Estebancelebrated the agreement, stressing that the presence of Basque institutions in key European international organizations “is essential as a new European tax system is currently being prepared.” He also stressed that these agreements “progressively complete the content” agreed before the inauguration of the President of the Government, Pedro Sánchez.