Dying is part of life, but in Spain it sometimes seems that this only applies to the rich. In Spain, high taxes are imposed on funeral services, making it one of the top five high taxes in the country. We are talking about the Value Added Tax or VAT (IVA in Spanish) of 21 percent.
In theory, a funeral service is essential because everyone will need it sooner or later. That is the argument used by María Dolores Asensi, the president of the Spanish funeral review service. She is asking the Spanish state for a reduced IVA (VAT) tax. Currently, the IVA for funeral services is still 21% in Spain, which is much higher than the European average.
Only in Hungary (27%) and Greece (24%) will taxes increase levied on funeral services. In Latvia and Lithuania, as in Spain, the figure is 21%. In most countries the tax is around 20%. But in countries like Portugal, Italy or the Netherlands, no taxes are collected for such services.
Before 2012, only 8% IVA was charged for funerals in Spain. The financial crisis brought change and means that the sector now has to levy more taxes than other sectors. Asensi reminds the government that the transport sector only pays 10%. Anyone who is transported in a hearse suddenly has to pay 21%?
“It seems to be a luxury service, while something like this should be essential”, the chairwoman concludes. While it would make little difference to the tax authorities, Asensi explains, a new reduction would be a big relief for families.
In Spain, an average funeral costs around 3,000 euros, 600 of which now goes to Hacienda (the Spanish tax authorities). However, there are alternative solutions. In Belgium, for example, a VAT of only 6% applies to ordinary services. However, anyone who wants to build a crypt or monument for the deceased person also pays 21%. The higher tax is also levied on the coffee table.