How did Spain and Portugal pay for their vast and complicated bureaucracies in their colonies?

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For the most part, these two Iberian countries (and especially Spain) paid for their vast bureaucracies with revenues gained from the colonies.  As I say, this was especially the case with Spain.  Spain's colonies in South and Central America were quite rich.  The silver mines of Mexico and Peru, for example, brought in huge amounts of money.  This money all belonged to the Crown.  The Crown was able to use this money to pay for the running of the colonies.

Outside of this, there were also various taxes that were levied on economic activity in the colonies and on imports and exports from the colonies.

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