Traitors getting round Spain's local taxes (5)
I believe the answer is:
rates
'local taxes' is the definition.
(rates paid to a local authority)
'traitors getting round spain's' is the wordplay.
'traitors' becomes 'rats' (rat can mean a traitor).
'getting round' is an insertion indicator.
'spain' becomes 'e' (abbreviation for Espana).
'rats' enclosing 'e' is 'RATES'.
(Other definitions for rates that I've seen before include "classes" , "Evaluates the importance (of something)" , "Former means of local taxation" , "Tax paid by businesses to a local authority" , "Former local tax" .)