Editing Monarchy of Spain (section)

===Annual budget and taxation===
Constitutionally the monarch is entitled to compensation from the annual state budget for the maintenance of his family and household administration, and freely distributes these funds in accordance with the laws.<ref name="Wiki Source Spa Constitution 78"/><ref name="Royal Household"/> According to the Royal Household, "[T]he purpose of these resources is to ensure that the Head of State may carry out his tasks with the independence which is inherent to his constitutional functions, as well as with due effectiveness and dignity".<ref name="Royal Household"/> The annual budget pays the remunerations for senior management staff, management staff and career civil servants, other minor staffing positions, and for general office expenses.<ref name="Royal Household" /> The Head of Household, Secretary General, and other management staff salaries must be comparable to other administration ministers within the government, though in no way do they form part of the government or administration.<ref name="Royal Household" /> As such, the management staff experience increases, decreases, or freezes to their pay in accordance with the fluctuations of government minister salaries.<ref name="Royal Household"/> Additionally, the annual budget pays for the maintenance and expenses of senior members of the royal family who undertake royal duties; which includes grocery, clothing, and toiletries allotments.<ref name="Royal Household" /> The budget approved by the Cortes for 2010 was just under 7.4&nbsp;million euros, a budget only slightly larger than that spent on the [[Monarchy of Luxembourg|Luxembourg monarchy]].<ref name="Royal Household" /> In 2011 the king addressed the perennial critique of the monarchy; that of how the annual budget awarded to the monarchy and royal household is spent.<ref name="Politica.elpais.com" /> The report revealed that only 9.6% of the 8.4&nbsp;million euros budgeted that year for the monarchy are paid to royal family members as 'salaries and representative duties', with the difference marked for royal household operational expenses such as household staff salaries, various insurance premiums and liabilities, services, and 'supplementals' such as overhead.<ref name="Politica.elpais.com"/> In 2012, the monarchy volunteered an additional 7% pay-cut in solidarity with government officials.<ref name="JuanCarlosOustedfrompresidency" />

Not included in the annual budget is the maintenance and upkeep of Spanish royal sites, which are owned by the state and made available to the king as the head-of-state, but administered by Patrimonio Nacional on behalf of the government of the day. Spanish royal sites are open to the public when members of the royal family are not in residence. Maintenance and upkeep includes [[groundskeeping]], [[Domestic worker|domestic staffing]] and catering.<ref name="Royal Household" /> The budget is administered with professional Public Administration accounting procedures, and is audited by government auditors.<ref name="Royal Household" /> All members of the royal family are subject to taxation and annually submit Income Tax and Wealth Tax returns and effect the relevant payments.<ref name="Royal Household" />