After the Spanish conquered parts of the New World they founded colonies there.
Most successful conquistadors recieved a fief (leengoed) from the Spanish king = encomienda.
The Spanish encomendero was allowed to raise taxes and make the indigenous people work for him, often on haciendas= Spanish large estates or worked in the silvermines. In return the people were protected and instructed in the Catholic faith.
The Spanish government shared in the profits.
The indigenous people payed taxes by working in the mines, they were paid nothing.