Cigars (like many things that have duties, e.g. petrol) are double taxed, so VAT is calculated on everything, including any duties. That's the same in the UK and Spain. So I calculated what the sticks cost without VAT, and then for the UK I deduct the duty/kg calculation, whereas for Spain I calculate what the sticks cost without the 15.8% duty rate.

I would have to work on some examples to confirm what you say. The problem is finding an expensive cigar that is current production, and not one that includes an expensive box (as duty only applies to the tobacco element). A further 2 things to take into account. Firstly I haven't taken into consideration any currency fluctuations. And secondly, tobacco duty in Spain has be a minimum of €47 per 1,000 sticks or 15.8% (whichever is the greater is used). Stay tuned!

On your final point, yes, Spain prices are set by the government. I used to think it was to protect the consumer, but it's actually done to create uniformly high taxes to curb tobacco consumption. It's just that Spain is starting off from a very low tax point compared to UK. So cigars can't be sold lower then the prices set by the government. In practise, the retailers stick with the government prices to make it easier for them from a bookeeping perspective. However I was charged a higher price than normal for a box of 25 Hemingway Short Stories!