The Alicante economy shows notable momentum, driven by tourism and a solid regional commerce base. This trend is reflected in tax collections reported by the Tax Agency, with growth outpacing the national average so far this year. The positive performance is supported by timely payments from regional businesses, contributing to a healthier VAT intake and higher wage and pension withholdings.
According to the latest monthly update from the agency, a dedicated delegation operating in Alicante reached 3,457.9 million euros through September, a 10% rise from the same period last year. Although this figure marks a slower pace than the surge seen in 2022 when inflation boosted collections by 19%, it still outperformed the national growth rate, which stood at 4.5%.
The largest contribution came from corporate tax, which taxes company profits within the territory. In the first nine months of the year, Alicante firms paid 464.8 million euros in this tax, a 25.3% year-on-year increase and well above the national decline of 11%.
Nevertheless, it should be noted that the overall state figure includes refunds and is affected by early payments in 2021, which mainly involved large Madrid-based companies. The improvement in profits has not translated into the same gains for Alicante, a nuance echoed by market observers.
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VAT collections also expanded at the national level, reaching 1,370.9 million euros through September, with the euro rising about 7.8% the same period versus a 1.4% national average. It is important to remember that the Alicante delegation reflects the amounts declared by province-based companies, not the total paid by residents and visitors for this category. Still, Alicante businesses reported stronger sales growth than the country as a whole.
Moreover, the performance of personal income tax shows a robust trajectory but remains slightly below the national average. Through September, income tax uptake stood at 1,389 million euros, showing an 8.9% increase in Alicante compared to a 9.5% rise nationwide.
The rise in tax intake aligns with a notable increase in employment in the region, with around 20,000 more Alicante residents entering Social Security compared to the previous year. As payroll and pension withholdings climb alongside higher wages, the overall withholding rate has risen by about 12.3%, reinforcing the link between labor market vigor and tax receipts.
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The Tax Agency notes limited movement in foreign trade taxes, while imports from non-EU origins face duties. A downturn in foreign purchases by local firms accompanies the broader slowdown in external demand.
There is also a notable uptick in dividend and interest withholdings across the country, driven by higher payouts to shareholders and stronger current accounts and deposits. Meanwhile, profits from investment funds show a cooling trend, reflecting shifting investment patterns in the market.