Since the end of the health crisis, the Alicante Tax Administration has tracked annual results with care, aligning figures with official records. In 2021, early signs of recovery appeared as the real estate market stabilized and financial institutions closed the year with steady inflows. Revenues reached 3.766 million euros, up from 3.556 million in 2007. The trend continued in 2022, when income climbed to 4.483 million. The momentum persisted into 2023, with annual results on track to surpass prior records even before the year closed.
In particular, provincial tax collections stood at 4.712 million euros by November, marking an 8.9% rise over the same period the year before. This increase is unprecedented in the historical record, driven by rising prices, stronger business profits, and a healthier labor market.
Suma achieved historic collections in the IBI campaign, exceeding 92% of the municipal councils’ revenue
Moreover, the rise in Alicante’s receipts outpaced national figures. The Tax Administration’s revenue reached 255.463 million euros by November, a gain of 5.5% year over year. Official monthly balance sheets published by the tax authority show that basic taxes for the state are collected here before a redistribution to regional governments and municipal councils.
Even the rents
On the tax front, the largest contribution comes from personal income tax (IRPF), which amounted to 1.894 million euros over the eleven months, a 9% increase in line with the national trend. This uptick mirrors several factors noted in the report: higher payroll withholdings, more pension payments, increased dividends and financial product earnings, and growing rental income. The result is greater profits for property owners and a broader tax base.
Behind VAT, with 1.809 million euros, a 6.2% rise was recorded. This figure far outpaces the modest 0.8% national increase, largely because of the lower rates on essentials such as food or electricity used to offset inflation. It is important to note that the VAT data reflect amounts charged by Alicante-based companies regardless of where sales occur, so the contrast reflects stronger activity among regional enterprises, notably those linked to tourism.
Within the major taxes handled by the AEAT, Corporation tax shows business profits for the period, totaling 716 million euros by November, up 21.8% from the previous year. This clearly signals improving profit margins for many regional companies, including Banco Sabadell, the largest employer with a registered presence in the area.
Meanwhile, Non-Resident Income tax rose by 5.3% to 109 million euros, reflecting payments by numerous EU officials and other foreign-income earners. In contrast, the Goods and Services Tax on imports and transactions fell by 8.6% to 64 million.