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Spain and Europe 1556–98

The Spanish economy in 1556 and the king's revenues

  • 3 things to know
  • AS Unit 2

Overview

Tercias reales, quinto real and millones and why were they granted.

What you need to know

Answer each one before you reveal it.

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Key term

State three economic problems facing Philip II in 1556.

Key term

Distinguish ordinary from extraordinary royal income.

Key term

What was the alcabala?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    State three economic problems facing Philip II in 1556.

    Model answer

    Philip II faced inherited debts he could not repay, a war with France that had to be paid for, and a tax base confined largely to Castile.

  2. 2

    Distinguish ordinary from extraordinary royal income.

    Model answer

    Ordinary income came from taxes and rights the Crown enjoyed year after year, while extraordinary income came from grants, loans and sales raised for a particular emergency.

  3. 3

    What was the alcabala?

    Model answer

    The alcabala was a sales tax, in theory a tenth of the value of goods sold, and the largest single source of ordinary revenue in Castile.

  4. 4

    What was the encabezamiento?

    Model answer

    The encabezamiento was the lump sum a town agreed to pay in place of the alcabala. The town then raised that sum locally in whatever way it chose.

  5. 5

    What were the tercias reales?

    Model answer

    The tercias reales were the share of the Church's tithe, two ninths of it, that the papacy allowed the Spanish Crown to keep.

  6. 6

    Name the three ecclesiastical grants that the papacy allowed Philip II to levy.

    Model answer

    The papacy granted Philip II the cruzada, the subsidio and the excusado, together known as the three graces. All three taxed the Spanish Church for the defence of the faith.

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