The Catholic Church, like all other organizations and citizens of the country, will have to pay taxes on its buildings in Spain. Madrid has scrapped exemptions for the building, installations and works tax (Icio) and the special contributions tax and now expects to recover around 16 million euros more each year.
The elimination of these financial privileges enjoyed by the Catholic Church will mean that municipalities will be able to collect and use public revenues that they have not had until now. Payment of both taxes coming into force today will affect dioceses (70) and parishes (almost 23 thousand), religious orders and congregations. In total, more than 6 thousand organizations will need to pay taxes. The liquidation was announced by the Minister of State for Finance, Jesús Gascón, who emphasized that “the Catholic Church is in the same situation as any other institution or organization that makes a profit.”
The abolition of the privilege, effective from tomorrow (November 3), is the result of the agreement reached between the socialist government of Pedro Sanchez and the Episcopal Conference held last March. The pact develops “in line with the common desire between the Government of Spain and the Spanish Episcopal Conference to equalize the tax regime of the Catholic Church with non-profit organizations in accordance with the principle of non-privilege and non-discrimination.” When the agreement was reached, a press release was made to a joint meeting of the Administration and the Church in March.
However, the Catholic Church will continue not to pay taxes on its properties, such as estate tax (Ibi), inheritance, inheritance and gift taxes, corporate tax, donations and alms, as agreed between the State and the Vatican in 1979.
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Source: Today IT
Karen Clayton is a seasoned journalist and author at The Nation Update, with a focus on world news and current events. She has a background in international relations, which gives her a deep understanding of the political, economic and social factors that shape the global landscape. She writes about a wide range of topics, including conflicts, political upheavals, and economic trends, as well as humanitarian crisis and human rights issues.
