Costco has completed a decade of operations in Spain without having declared benefits, and therefore, without having paid a single euro in companies, according to its annual accounts and what was published by Digital economy.
The figure. 143 million euros. This is the accumulated amount of losses that the Spanish subsidiary of Costco has declared between 2014 and 2023. However, its sales have multiplied by five since 2017, reaching 544 million euros in 2023.
It has also increased its physical presence with five new hypermarkets, plus two others under construction.
- It has expanded its partner base to 650,000 (24% more than the previous year).
- Employ 1,256 people in Spain.
- He is building a logistics center in Guadalajara where he has invested more than 50 million.
Why is it important. This case is an example of a common strategy among multinationals: artificially maintain red numbers in specific markets to avoid local taxation, while their operations and market presence increase.
- The company itself acknowledges in its accounts that “it has not had to satisfy any amount for societies tax in Spain”, adding that its greatest contribution has been “the generation of local wealth.”
The money trail. Costco does not publicly detail which mechanisms to maintain constant losses despite its growth, but the usual strategies include:
- Loans between subsidiaries with high interest.
- Canons for the use of brand, technology or know-how.
- Transfer prices in purchases to other subsidiaries.
- Strategic Business Costs.
The trend. The US matrix continues with its expansion in Spain, despite losses. The group has reduced its red numbers to 7.7 million in 2023 (its best historical result), and the company projects that it will continue with losses “until it reaches a level of market penetration and sales” sufficient.
Said in Román Paladino: until it has grown enough.
The general panoramic. This strategy is not exclusive to Costco. Large multinationals such as Amazon, Starbucks or Ikea have resorted to different fiscal engineering mechanisms to reduce their taxation in countries where they operate, within legality but are not a certain controversy.
Meanwhile, the Spanish client seems oblivious to these fiscal ins and outs: the 650,000 members who pay their annual fee to access the costco prices continue to increase, a sign that their model works independently of the declared red figures.
Outstanding image | Costco
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