Google's Spanish offices in Madrid have been raided as part of an investigation into the internet giant's tax payments.

It is the latest blow for the company in Europe, coming just weeks after its Paris offices were raided in a separate case.

Google insisted it pays all taxes it owes in Spain. A spokesman said: "We comply with Spanish tax laws just as we do in all countries where we operate. We are co-operating with the authorities in Spain in order to answer all their questions, as always."