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Spain's Economy

Regional Autonomy and Catalonia

How Spain's autonomous communities have wide powers, why the Basque Country and Navarre collect their own taxes, and the economics of Catalonia's independence push.

Spain has 17 autonomous communities.

Powers

Regions run health, education and more.

Basque and Navarre

These regions collect their own taxes and pay a fee to Madrid, a special arrangement.

Catalonia

  • Catalonia is one of Spain’s richest regions.
  • Many Catalans feel they pay too much to Madrid.
  • An illegal independence referendum in 2017 led to a crisis.

Business exodus

After 2017, thousands of firms, including big banks, moved their legal headquarters out of Catalonia.

Economics

Fiscal transfers between rich and poor regions are debated in many countries, including India.

The moved headquarters

A major Catalan bank moves its registered office to Valencia to reassure customers during the 2017 crisis.

Thinking secession has no economic cost

Firms moved headquarters in 2017.

Key takeaways
  • Spain has 17 autonomous communities.
  • Basques and Navarre collect their own taxes.
  • Catalonia's 2017 referendum caused a crisis.
  • Firms moved headquarters.
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