IVA / VAT - an optional tax!

I have come to the conclusion IVA/VAT is almost, like most taxes in Spain, optional. 

I think Spain will always operate a "two book system'' like many countries it's generic

In a recent survey it is estimated that over 20% of business carried out in the UK is undeclared

I guess cash is still king

Interesting - I'm surprised to hear UK is so high. Outside the home improvement building sector I thought most was always declared especially as so many transactions are credit/debit card these days whereas in Spain many establishments do not take credit cards.

What would you say the % is in Spain?

Working in the construction sector here i can see where your coming from. but you'd be surprised what and where you can obtain services outside of the system. I agree 20% sounds a high but its was one of the financial big boys survey.

As for Spain your right about the fact that it seems hard to buy many things without cash. Cards are getting much more mainstream,  but try paying for something by bank transfer.

My guesstimate would be 35/40%

I know of an owner on our development that even paid is Spanish lawyer cash! I know you find that hard to believe!!!!!!!!!! And no it wasn't me.

I would put the percentage at even higher - probably around the 50 - 60 % MARK

There is hardly an industry where cash in not taken and in particular the spanish still, predominantly, use cash as a method of payment.

In our little edge of the world down in the Fuengirola/Marbella area there are so many 'property' companies ... a reasonable number are registered and pay IVA and tax but even then probably not on all transactions ............ let alone those many thousands of people of all nationalities incuding the spanish nationals who declare NONE of their earnings in this sector

I also know many gardeners, mainly spanish nationals, who have a contract for say 1/2 a day Mon-Fri BUT also have many cash in hand jobs too ... do these get declared?? dont be silly!!

All over the world bars and restaurants have always been considered as suspect in the area of declaration - in the UK the authorities pay particular attention to percentages in these businesses.