After the sharp deterioration that the sector has suffered during the months of the state of alarm, with air transport in Spain registering a decrease of over 80%, flights and passenger traffic have been reactivated from the beginning of June, although reaching levels still much lower than in 2019.
The months of June and July are usually used by drivers to prepare their vehicles for summer journeys. July is the Corporate Tax´s month, as the vast majority of companies file their returns in this month. This month of July has seen a major ruling by the Constitutional Court, which may have more consequences than those initially derived from the declaration of unconstitutionality it contains. For all these reasons, and in the same way that we are paying attention to our car, I believe that the time has come to stop and carry out a small review of the state of our Corporation Tax. Let's take step by step.
At Equipo Economico we maintain, at the moment, our estimated contraction of the Spanish GDP of, at least, 10% in 2020. In 2021, the economy pickup would allow it to grow at 7.2%, although this will be insufficient to reach previous annual levels of growth and employment. The implementation of an adequate economic policy is urgent to overcome the challenges posed by the depth of the crisis in Spain and strengthen recovery.
In the last years, the tax authorities have focused on checking the sale of non-traded securities, often ignoring the existence of proof guidelines and relying instead on one of two objective methods.
The real estate sector is proving to be one of the most affected by the Covid-19 crisis in Spain. The framework of uncertainty around the virus, together with poor economic prospects and the impact on the labor market are delaying investment decisions. All of the above forecast that the diminishing demand for residential housing will continue in the coming months. On the other hand, the medical origin of this crisis, as well as its exceptional nature, could be causing a change in the tastes and preferences of consumers, who now place a higher value in space and light, to the detriment of location.