BBVA paid more than €7.6 billion in own taxes in 2023 (+53 percent), its highest ever figure

The BBVA Group paid a record €7,668 million in own taxes in 2023 across all the countries in which it operates, up 53 percent on the previous year.  A further €5,950 million was also collected from third parties, making a grand total of €13,618 million in taxes, the highest tax contribution ever recorded by the Group. In Spain alone, BBVA paid a total of €3,384 million, 23 percent more than in 2022, thanks mainly to the increase in own taxes (€1,911 million, +44 percent year-on-year).

In the words of Carlos Torres Vila, Chair of BBVA, “as companies we contribute toward long-term economic and social development.” Thanks to its business activity “BBVA reported the highest tax contribution in its history in 2023, for a total of €13,618 million worldwide, with which we contribute to the welfare of the societies in which we are present,” up 24 percent on the previous year.

A large portion of this figure, €7,668 million, relates to taxes that BBVA pays on its own behalf, which is the main reason for the growth in the Group’s total tax contribution over the previous year, which has increased by 53 percent. The increase in this line has been particularly notable in Mexico, where the payment of own taxes has more than doubled compared to 2022, though also in Spain, where it has grown by 44 percent. These figures clearly illustrate how the profitability of financial institutions translates into growth and economic welfare.

Among own taxes, corporate income tax is the main one, with payments in 2023 totaling €5,196 million around the world, more than two thirds of the total. Dividing this payment by the BBVA Group’s profit before tax in 2023 —which was €12,419 million— gives a tax rate of 41.84 percent.

This is followed by Value Added Tax (VAT), which accounted for 11.36 percent of the total, employee-related taxes (Social Security contributions), with 10.67 percent, and lastly other taxes, which accounted for the remaining 10.21 percent. Other taxes include those levied specifically on financial institutions and have risen sharply in recent years (+47 percent with respect to 2022), largely due to the introduction of the bank levy in Spain.

By region, and counting both own and third-party taxes, Mexico makes the highest tax contribution to the Group, with €5,027 million (37 percent of the total), followed by €3,384 million in Spain (25 percent of the total) and €2,844 million in South America (21 percent of the total). BBVA’s tax contribution amounted to €1,925 million in Türkiye (14 percent of the total), €331 million in the rest of Eurasia (2 percent) and €107 million in the United States (1 percent).

Transparency and tax responsibility

BBVA has been voluntarily publishing its Total Tax Contribution Report for 12 years, in accordance with the methodology designed by PwC. It relies on the metrics and breakdowns proposed by the Global Reporting Initiative under GRI 207, along with those of the sustainable value creation report proposed by the International Business Council (IBC).

The Bank’s commitment to transparency was once again explicitly recognized in 2023 by entities such as Fundación Haz, which awarded BBVA its ‘t for transparency’ badge. Meanwhile, the Dutch Association of Investors for Sustainable Development (VBDO), in its first transparency analysis of BBVA, also named BBVA the most transparent bank in Europe when it comes to tax.

BBVA took a further step forward in terms of tax responsibility by updating its Tax Strategy  in late 2023, with the aim of incorporating environmental, social and governance (ESG) criteria into its tax decision-making and further bolstering its model of tax governance, supervision and control.

This transparency and responsibility, together with the Group’s effective tax contribution, have once again caught the eye of the prestigious Dow Jones Sustainability Index, which awarded BBVA the highest score in tax matters for the sixth year running.