PALMA, 17 (EUROPA PRESS)
Tax revenues in the Autonomous Community of the Balearic Islands reached 2,594.2 million euros during the first half of 2026, representing an increase of 103.1 million euros—a 4.14 percent rise—compared to the same period of the previous year.
The Regional Ministry of Economy, Finance, and Innovation noted in a statement that the trend in tax revenues reflects the "strong performance" of the archipelago's economic activity and labor market.
The contribution of the Personal Income Tax (PIT) to tax revenues has been "particularly significant," to the point that it has been the main driver of the overall revenue increase. As of June, this figure was 947.8 million euros, a year-over-year increase of 7.72 percent.
The other main tax categories have remained stable, in general. This is the case, for example, with the Value Added Tax (VAT), which generated revenues of 811.6 million euros, representing growth of 3.71 percent. Special taxes, on the other hand, generated revenues of 235.5 million euros, 2.1 percent less than a year ago.
Overall, revenue from personal income tax, VAT, special taxes, and taxes on deposits by deposit-taking institutions totaled 1,994.9 million euros, an increase of 91.8 million (4.83%).
As for other own and cedular taxes, revenues amounted to 599.3 million euros, an increase of 1.92 percent. Within this group, the Tax on Property Transfers totaled 330.6 million euros, while the tax on legal documents amounted to 112.7 million. The Tourist Accommodation Tax amounted to 39.5 million euros, and the water treatment fee stood at 40.2 million.
"These figures show that the strong performance of the economy and the labor market in the Balearic Islands is also reflected in public revenues. The increase of more than 103 million euros in the first half of the year, driven mainly by the personal income tax, is a positive sign of the strength of our economy," said the minister in charge of the department, Antoni Costa.
The head of the Finance Department emphasized that this increase in revenue has occurred in a context of reducing the tax burden for young people, families, the self-employed, and people with low and middle incomes.
AMID TAX CUTS
In the first three years of this legislative term, the Balearic government has implemented "the largest tax reform in the history" of the Balearic Islands, which has resulted in an accumulated savings of 1,444.1 million euros for citizens through the various tax measures approved.
The inheritance tax has been eliminated for direct family members, the tax on property transfers has been reduced or eliminated, and personal income tax deductions have been expanded for low and middle-income earners.
In total, 38,925 families have avoided paying 1.099 billion euros in inheritance tax, while 10,801 people have benefited from the measures related to the property transfer tax, with a combined savings of 116.46 million euros, according to regional government data.
This situation, Costa argued, "shows that it is possible to combine a fiscal policy that leaves more resources for families and businesses with a dynamic economy that generates more activity and, therefore, more public revenue."
The tax reform implemented in 2023 has already resulted in savings of more than 1.44 billion euros for citizens, while the regional government "has simultaneously maintained its commitment to public services and the process of consolidating public finances," reducing debt by more than 510 million euros in three years