Spain Is On The Brink Of Financial Collapse Because Nobody Pays Taxes

Spain threatens the strength of the euro currency union far more than Greece, given the much larger economy. And it turns out that, just like Greece, Spain has a horrendous tax-dodging problem. Which means lost tax revenue the Government has to borrow money for.
For Spain, such tax shenanigans center around the property market where reportedly half of landlords evade taxes.
Bloomberg:
Owners are asking for payment in cash from tenants to avoid tax on 2.5 billion euros ($3.5 billion) of earnings annually, the Gestha union of tax inspectors estimates. An increase in rental properties nationwide hasn’t generated any more tax revenue.
The Spanish government, seeking to pull the country out of its deepest recession in 60 years, needs all the money it can get right now. The slump was triggered by a crash in the housing market and has left Spain with the highest budget deficit since at least 1980. Taxes go unpaid on income equal to about a quarter of gross domestic product, Gestha estimates.
...
Encinar, whose company lists 360,000 properties for rent and purchase, said Gestha’s estimate that 54 percent of landlords are ducking taxes “falls short of the true figure, which is set to grow further.”
So let's see, as a back of the envelope calculation, $3.5 billion a year for the last ten years would mean $35 billion in government expenditures which required debt to finance versus using tax revenue. Given that a $35 billion dollar European bailout for Spain, today, would make headlines and likely remove market concerns regarding Spain's financial situation, stories of lax tax enforcement show how Spain only has itself to blame here.

Spanish real estate jargon

spanish real estate jargon gives you some help with spanish words. Try to learn some before buying your house or appartment at the costal del Sol, Torremolinos. You will find out that even foreign real estate agents are used to use some spanish words during the process of buying. good luck studying.

Abogado – lawyer or solicitor
Apostilla – an official stamp on the document which certifies the signature
Ayuntamiento – city or town hall
Ático – penthouse
Baño – bathroom
Bodega - winecellar
Contrato privado de compraventa – contract of sale
Comprador – buyer
Calefacción – heating
Calidad – quality
Campo – in the country
Casa – house
Cocina – kitchen
Comedor – dining room
Ciudad – town
Cuarto -room
Dormitorio – bedroom
Ducha – shower
Dúplex – maisonette
Escritura – Notarised deed of sale
Escalera – stairway
Finca – farm or townhouse
Gastos – fees or expenses
Granja – farm or farmhouse
Hipoteca – mortgagee
Honorarios – fees
Huerto – orchard
ITP – transfer tax payable when buying a re-sale property
IVA – VAT
Inmobiliaria – estate agent office
Impuesto - tax
Lavadero – utility room
Lujo – luxury
Muebles – furniture
Nota simple – property registry information
Notario – notary who handles all the conveyance work for property sales
NIE – tax identification required by all foreign property owners in Spain
Primera copia – signed original of the escritura or a certified copy
Puerta – door
Piscina – swimming pool
Parcela – building plot
Piso – apartment, or floor of building
Pozo – well (of the water type)
Precio – price
Pueblo – village
Propiedad – property
Rústica – rural or agricultural
Reformada – modernised
Río – river
Salón – lounge
Se vende – for sale
Trastero – storage room
Urbanización – community development
Vendedor – seller
Ventana – window