The recent real estate surge has boosted the Valencian economy, filling public coffers across the region and strengthening public administrations, with a notable impact on the Generalitat. Inheritance Transfer Tax and Documented Legal Transactions Tax are imposed on all property purchases and sales. The appeal of these two taxes lies in the substantial growth reported by the Valencian Tax Office in Alicante, which doubled over two years according to the latest management balance led by its director, Sonia Díaz.
As the 2022 fiscal year closed, some areas showed a modest slowdown, yet overall revenue reached 1,176 million euros across all sources, reflecting a 30.9 percent year‑over‑year increase. This rise was driven by a strong uptick in district administration collections, with ATV in Alicante posting 612 million euros in the previous year and the overall total exceeding the 2020 level by a wide margin.
Díaz emphasizes that this boost translates into greater resources for the Generalitat to fund public services. The tax system acts both as a lender to support government programs and as a channel through which citizens benefit from the real estate boom.
With the ATV director pictured alongside the national Finance Minister, Arcadia, it is clear that much of this growth stems from heightened business activity. The housing market acceleration since the post‑pandemic period has driven demand for home purchases, with the Property Transfer Tax and the Documented Legal Transaction Tax applying to both second‑hand and new construction deals.
For second‑hand purchases, receipts rose from 378 million euros in 2020 to more than 577 million in 2021, and around 807 million in 2022. AJD revenue increased from 95 million to 132 million across the same interval.
The state of Alicante contributed 759 million more to the Treasury than the previous year.
The positive news, Díaz notes, is that the market remains resilient. The current momentum fuels optimism for the year ahead, though further growth is not expected to accelerate rapidly.
Still, most other taxes collected by the Generalitat advanced in the past year, with the exceptions of donations and corporate activity, which declined by 29.7 percent and 5.2 percent respectively.
On the upside, wealth tax revenue reached 54.1 million euros, up 23.9 percent, while related taxes added another 12.9 percent to reach 116.6 million. In a similar pattern, other revenue streams rose, with 55.9 million euros collected, a 36.2 percent increase, according to the same sources. Across the entire community, total collections rose 18.6 percent to 2,506 million euros in 2022.
Streamlining payments remains a primary objective for taxpayers in the near term. The Valencia Tax Office plans to simplify compliance and improve the information available to taxpayers, making the payment process smoother for any tax draft that the State Tax Office may utilize at filing time. The regional authority recognizes that the AEAT still has room to grow before reaching its full potential.