In 2022, about half of OECD members, including Spain, introduced some form of extraordinary tax on windfall gains predominantly tied to income from energy, oil, and related sectors. Amid post-pandemic recovery challenges and the shock of the Ukraine conflict, governments aimed to raise revenue to curb inequality and support social cohesion.
These measures reflect a broader move toward more progressive tax systems as nations seek solutions for rising disparities. In its annual world financial trends analysis published midweek, the OECD notes the need to address growing inequality and to protect social welfare in a changing economic landscape.
The report Fiscal policy reforms 2023 from the Paris-based OECD highlights Germany as a focal point. Among 36 countries with available 2021 tax data, roughly half—19 in Europe and Latin America—imposed windfall or higher taxes on profits earned by firms in specific sectors. The aim has been to raise revenue for social buffers that soften inflation’s impact on households.
Spain moved into a group of OECD economies where financial pressure rose fastest in 2021, following a 1.6 percentage point boost to GDP.
Profit, income, and the tax mix
The OECD identifies 19 countries applying this type of levy, with 13 of them taxing profits. This group includes Austria, Bulgaria, Croatia, the Czech Republic, France, Germany, Italy, Lithuania, the Netherlands, Romania, Slovenia, Greece, and the United Kingdom. A separate bloc—Argentina and Colombia— targets income for taxation. A third category labeled “others” covers Spain’s energy and banking levies as well as taxes on net income or interest. Some nations also tax export-related gains or other variables.
In several cases, these levies are described as solidarity taxes with temporary design. The typical expiration dates hover around 2023, though some extend to 2024 in Spain, 2025 in the Czech Republic, 2027 in Colombia, and 2028 in the United Kingdom. In Colombia, a portion of the new measures has become permanent.
Beyond windfall taxes, the OECD notes that some jurisdictions capped energy prices to counter the risk of profit erosion. Austria, the Czech Republic, Germany, Slovenia, Sweden, France, the Netherlands, and Slovakia are among those adopting such measures. Spain and Portugal are not counted in this particular group, though there is academic discussion of an Iberian exception in some analyses.
The OECD stresses that, when well designed, a tax on purely economic income—whether framed as windfall profits or excess returns—should not deter investment or production. Critics of Spain’s income-focused approach argue that it targets income rather than profits and may affect incentives.
Energy, banking, and health sector taxation
Across most cases, the taxes focus on the energy sector, oil, or electric utilities. In Spain, Colombia, and the Czech Republic, the levies extend to financial institutions as well. Argentina and Croatia broaden them to all productive sectors, while Hungary expands the scope to include pharmaceuticals, telecommunications, financial services, and retail.
These measures are typically framed as temporary solidarity efforts with sunset dates around 2023, though extensions occur. Some countries keep windfall taxes in place longer, with Colombia and the United Kingdom signaling longer horizons for the measures. In several instances, certain figures have been made permanent. The evolving mix shows how governments weigh balancing revenue needs with macroeconomic stability.
Broad fiscal pressure and its trajectory
The OECD’s 2023 assessment highlights the windfall revenue from energy and other sectors as part of wider fiscal trends. It also notes that 2021 marked the second straight year of rising tax take as a share of GDP, despite the pandemic’s earlier hit. The OECD estimates that overall fiscal pressure rose by about 0.6 percentage points in 2021, reaching roughly 34.1 percent of GDP—the highest level since the early 1990s in many economies. Within this mix, Denmark stands out with about 46.9 percent of GDP, while Mexico ranks around 16.7 percent. Spain sits near 38.4 percent in the OECD’s calculations.
The increase in fiscal pressure during 2021 partly reflects the quicker rebound in tax and social contributions compared with GDP. Across 36 countries with 2021 data, the tax burden rose by about 11 additional points overall, while growth did not keep pace in some places. Norway recorded the largest jump in fiscal pressure, driven by the oil windfall levy, followed by countries like Chile, Israel, New Zealand, and Korea. Spain emerged as the seventh-largest contributor to the overall rise in 2021 after Lithuania, with several economies seeing notable gains. Hungary experienced the most pronounced decrease, while Canada, Iceland, Mexico, and Türkiye saw reductions in fiscal pressure.