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OECD Warns Spain For Taxing Workers Too Much

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Hard workers in Spain are facing a shrinking disposable income as the national tax burden continues to climb well above international averages. Recent data released by the OECD in the “Taxing Wages 2026” report confirms that a single worker without children now loses 41.4 per cent of their gross earnings to the government and social security.

The figures show Spain’s “tax wedge” (the difference between what an employer pays and what a worker actually receives) has reached its tenth highest level across the 38 nations of the Organisation for Economic Co-operation and Development (OECD). Spanish tax pressure grew by 0.31 percentage points over the last year, a rate more than double the OECD average increase of 0.15.

Salary increases failing to match Tax growth

Workers experienced a real-term loss in purchasing power throughout 2025 because tax hikes overtook wage growth. Average salaries rose by 1.2 per cent, while personal income tax jumped by 1.5 per cent, resulting in a 0.3 per cent drop in what people could actually afford to buy. Spain remains one of only seven OECD countries where this specific imbalance led to a direct reduction in household wealth.

Most of this growth came from personal income tax, which rose by 0.25 percentage points in Spain despite falling slightly across the rest of the developed world. This trend suggests that even when employees receive a pay rise, the state claims a larger portion of the increase, leaving families with less money for daily essentials. The pay rise essentially goes to more tax, potentially eliminating the impetus to work harder.

Spain’s burden of high social security costs

Business owners also face heavy pressure, with employer social security contributions accounting for a massive 23.4 per cent of total labour costs. This figure dwarfs the OECD average of 13.5 per cent and creates a major barrier for companies looking to hire new staff. Higher business costs make Spain a more expensive place to operate compared to many neighbouring economies.

Personal income tax (IRPF) accounts for another 13.1 per cent of the gross salary, while employee social security contributions add a further 5 per cent to the total deduction. While the average developed nation requires a 13.5 per cent contribution from employers, Spain demands nearly double that amount, making it almost impossible for small businesses to expand their teams.

Failure to adjust for inflation costs workers

Financial experts at the General Council of Economists point to a lack of inflation indexing as a primary cause for these rising costs. Tax brackets have stayed static even as nominal wages increased, meaning many low-to-middle-income earners are pushed into higher tax bands without experiencing a genuine improvement in their lifestyle.

Many warn that this “fiscal drag” effectively erases the benefits of hard-won pay rises before the money ever reaches a bank account. In some cases, a pay increase can almost entirely disappear once tax benefits and subsidies are reduced or cut off due to the higher gross figure.

The OECD cautioned the Spanish government that such a heavy focus on workers’ taxation discourages job creation. They recommend moving toward alternative revenue sources, such as environmental levies or VAT, to help strengthen employment incentives. Belgium currently leads the world with a massive 52.5 per cent tax wedge, while countries like Colombia and Chile maintain much lower burdens at 0 per cent and 7.5 per cent, respectively.

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Spain’s 018 Accident Helpline Is Now Live. Here’s What Happens When You Call

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Being involved in a road collision abroad can be more difficult than at home. Photo credit: vladimir subbotin/Shutterstock

Starting today, April 23, the 018 road accident helpline is active in Spain as a national support service for people affected by road traffic accidents. Operated by the Dirección General de Tráfico (DGT), it provides assistance across the country to anyone involved in or impacted by a road incident.

Unlike emergency services number 112, 018 is not designed for reporting an accident as it happens. It is intended for use afterwards, when immediate danger has passed and people may need help understanding what to do next. The service is available 365 days a year, from 08:00 am to 09:00 pm, giving callers access to support throughout the day, including weekends and public holidays.

What happens when you call 018

When you dial 018, you are connected to a trained support operator rather than emergency responders. The call is handled by staff who guide the caller through the situation step by step. The conversation usually begins with basic details about the accident. This may include when and where it happened, whether emergency services were involved, and whether medical attention has already been received. 

From there, the focus shifts to the caller’s current needs. This can include emotional support if the person is distressed, disoriented or dealing with shock after the incident. The final part of the call is practical guidance. Call handlers explain what typically needs to be done after a road accident in Spain, such as how to obtain reports, what steps may be required with insurance providers, and where to seek follow-up support.

The service is also designed to be accessible to international users, with assistance available in up to 50 languages, helping non-Spanish speakers communicate their situation and understand the guidance provided. The aim is to help the caller leave the conversation with a clearer understanding of what to do next.

Who the service is for

The 018 helpline is available to anyone affected by a road traffic accident in Spain, regardless of nationality or residency status.

This includes:

  • Residents living in Spain, including foreign nationals 
  • Tourists involved in road traffic accidents 
  • Family members of injured or deceased individuals 
  • Witnesses directly affected by a serious incident 

For expats and tourists, the service can be particularly helpful when dealing with unfamiliar procedures or language barriers after an accident.

The helpline is available nationwide and can be accessed from anywhere in Spain.

What kind of help you can expect

The support offered through 018 covers several types of assistance that are commonly needed after a road accident. Callers may receive psychological support if they are dealing with shock, anxiety or emotional distress following the incident.

They may also be given basic legal orientation, helping them understand general next steps after a collision, including documentation and reporting processes.

In addition, the service can provide information on accessing medical care and rehabilitation services, as well as guidance on relevant public support options. In more serious situations, such as major injury or bereavement, family members can also be supported and directed towards appropriate services.

For foreign residents and visitors, this can help reduce uncertainty when dealing with processes they may not be familiar with.

A support service, not an emergency line

The 018 number is not an emergency service. It does not replace 112, which remains the number for urgent medical assistance, police response or fire services. If an accident is happening or there is immediate danger, 112 should always be called first.

018 is intended for use after the emergency has been resolved, when people need help understanding and managing what comes next. It is also not a substitute for formal legal advice, insurance handling or medical diagnosis. Instead, it provides general guidance and helps direct people towards the appropriate services.

People can contact the service in several ways:

  • Telephone: 018
  • WhatsApp: 645 713 823
  • Email: victimastrafico@dgt.es
  • Online contact options through official DGT channels

This range of contact methods may help travellers who do not have immediate access to a local phone line but can use mobile data or messaging apps.

Part of the accident aftermath support process

The introduction of 018 provides a single national contact point for people dealing with the aftermath of road traffic accidents in Spain. For many people, especially those unfamiliar with the system, the period after an accident can involve uncertainty around documentation, medical follow-up and administrative steps.

This service brings those queries into one place, offering structured support at a time when individuals may be under stress. In simple terms, the distinction is clear: 112 is for emergencies, while 018 is for guidance once the immediate situation has passed.

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British Woman Honoured 42 Years Later For Life-Saving Bridge

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The Benavista community safe due to one woman’s determination. Credit: EWN

Heroes often come in the form of people who simply refuse to look the other way. Stella Bosworth returned to Estepona on Thursday, April 23, to receive a silver plaque in honour of her unwavering determination in 1984. That year, she witnessed the lethal nature of the coastal road, the A340, now the A-7, and delivered a stern ultimatum to her boss: build a bridge or lose a manager.

Stella told her boss, developer Alan James, in no uncertain terms, “I’m going to have to resign, because I don’t want any more people being killed on that road. We’ve got to build a bridge.” Her stance provoked a movement that transformed safety on what was then one of Europe’s most dangerous stretches of tarmac. Alan James, founder of The Experience Group, took the extraordinary step of privately funding the crossing after official channels failed to act.

Alan James thanks Stella Bosworth.
Alan James thanks Stella Bosworth.
Credit: EWN

Private funding for public safety

Alan recalled the frustration of the era during the presentation at the Benavista footbridge. “I went to Estepona town hall, but nothing. I went to the Malaga town hall, but nothing,” he explained. He decided the community could not wait any longer for bureaucrats to move, as the delays were impacting essential services and safety in the area. “We decided that it had to be done, so we paid for it and built the bridge. So, it was the determination from this lady, when she was still a slip of a lass, that saved hundreds of lives.”

Dangers are still there on the A-7

Danger remains a constant on the A-7, as evidenced by a three-car pile-up that occurred just 30 metres away, only five minutes before the ceremony started. This accident served as a grim reminder of why Bosworth’s intervention was so vital. Without her tenacity, Alan believes a footbridge “probably wouldn’t have even been thought of for another 10 years”. Scores of similar crossings now line the coast, yet this original structure remains a symbol of individual initiative and life-saving determination.

Council confirms long-awaited upgrades

Estepona councillors attended the ceremony to officially announce that extended works have been approved. Funding for ramp access is now budgeted, making sure that people with disabilities, the elderly, and parents with prams will be able to access the crossing safely. Stella Bosworth and Alan James remain an inspiration, proving that taking the first step can create a lasting, life-saving legacy for the community.

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Fire At La Ermita Industrial Estate

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Emergency services quickly and efficiently brought under control a major fire that broke out on Thursday, April 23 in the morning at a candle warehouse in the La Ermita industrial estate in Marbella. 

The incident began shortly before 10am, according to local reports, and produced a large column of black smoke that was visible from several parts of the town. The smoke prompted a rapid response from emergency services.

Firefighters from Marbella and surrounding areas were deployed to the scene, supported by Local Police, National Police, and medical personnel. More than 20 firefighters and multiple fire engines were involved in the operation at the warehouse on Calle Hierro. 

The cause of the fire is yet to be determined

Three people were reported injured. Emergency services treated them at the scene. Thankfully, the injuries were described as minor and included one of the people suffering smoke inhalation and the other two injured members with minor burns. 

The unfortunate fire affected a large warehouse used for the storage and production of candles. The building contained highly flammable materials associated with candle manufacturing and storage.

Police quickly established a wide security perimeter around the industrial estate to allow emergency crews to work at speed. Access to parts of the area was restricted while firefighting operations were carried out. Power interruptions were reported in nearby areas during the incident, according to local sources.

By early afternoon, emergency services thankfully reported that the fire had been brought under control. Firefighters remained at the scene to continue to extinguish remaining hot spots and secure the affected structure.

No fatalities were reported from the scene

The warehouse has sustained significant damage as a result of the fire. Nearby buildings were monitored by emergency services during the response.

The cause of the fire has not yet been confirmed by authorities and crews continue to work to determine the start of the incident. No fatalities were reported from the incident. 

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