In practice, where people choose to live often follows what they can afford. Affordability drives where someone rents or buys housing, and tax authorities illuminate this with annual snapshots of wealth and income across major Spanish cities. The latest report highlights clear gaps in Alicante and Elche, where some areas linger behind others financially.
Once again, certain neighborhoods in the province’s two largest towns appear among the lowest income groups in a study covering 62 municipalities with populations over 200,000. In 2021, Nou Alacant, along with nearby Virgen del Carmen and Colonia Requena, and parts of John XXIII, recorded among the lowest incomes for roughly 900 residents analyzed, averaging 15,760 euros per taxpayer. Only Torreblanca in Seville posted a lower figure at 10,780 euros.
Distribution of income by postal codes in Alicante shows Carrus and the Barcelona Square area in Elche with third lowest incomes at 15,959 euros. Garden City and Virgen del Remedio followed closely as the fifth poorest area with 17,562 euros, while Altamira El Toscar ranked ninth in Elche.
These numbers may look modest at first glance. Yet in La Moraleja of Alcobendas near Madrid, a single neighborhood averaged 191,000 euros, illustrating a sharp provincial contrast. San Juan Beach, the wealthiest area among the two cities studied, reported an average income of 40,778 euros per taxpayer, yet this placed it around the 97th percentile in the overall classification.
The postcodes containing Carrus and the Barcelona Square area in Elche repeated a similar pattern, with third lowest incomes at 15,959 euros. Garden City-Virgen del Remedio followed closely as the fifth poorest area with 17,562 euros, while Altamira-El Toscar ranked ninth in Elche.
Changes with the epidemic
The study, based on income tax returns filed by residents, shows inequality widening more in Alicante than in Elche. The gap between the richest areas of the capital, such as San Juan Beach, and the most modest areas, such as Nou Alacant Virgen del Carmen, reached about 25,000 euros. In Elche, the poorest neighborhood Carrús and the richest rural area of Valverde showed a gap around 16,239 euros.
Looking at the impact of the epidemic, the data reveal notable shifts in both cities since 2019. In Alicante, the center lost the top income spot to the Beach neighborhood, possibly tied to the arrival of new residents in PAU5 developments and a broader relocation trend after lockdowns. About one in eight residents in the highest income tax bracket earned more than 60,000 euros in 2021, showing how the crisis affected different areas in varying ways.
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The overall revenue recovery in 2021 came with a rebound after the 2020 lockdown. In Virgen del Carmen, declared income continued to decline, slipping from 17,600 euros in 2019 to 16,713 in 2020 and to 15,760 euros in 2021, underscoring the epidemic’s harsh impact on certain neighborhoods. In Elche, the pandemic briefly shifted the ranking of wealth within the city as Valverde surrendered first place to La Gaul Bonavista, a change that began to reverse in 2021.