About 8,000 wealthy residents in the Balearic Islands will stop paying Wealth Tax, according to data from the Socialist Group in Parliament. The reform pushed by Vox and supported by the People’s Party Government would shield an even larger number of people from this tax, based on 2022 collection figures.
Vox urged the PP to approve the 2024 regional budgets, backing a major revision of Inheritance tax. The key change would raise the minimum exemption from 700,000 euros to three million euros, removing that amount from the calculation. Llorenç Pou, spokesperson for the Socialist Group on economic issues, notes that in 2022 a total of 7,183 island taxpayers owed the tax because their assets were above 700,000 euros but below 2,036,739 euros. The expectation is that everyone in this bracket will be exempt from 2025 onward, the year when tax declarations become mandatory. An obligation existed to contribute to the Balearic treasury.
A subgroup of 1,098 taxpayers reported assets between 2,036,739 and 3,427,479 euros in 2022. With the Vox reform, only those exceeding three million euros would continue to owe tax. Tax professionals anticipate that roughly two-thirds of this group will be exempt, meaning about 725 people.
In practical terms, around 8,000 island residents with substantial assets could avoid paying any Wealth Tax under the reform, thanks to the stance taken by Vox and the conditional support from the PP for budget approval.
Those who would still be liable represent about a third of taxpayers who declared assets between 2,036,739 and 3,427,479 euros in 2022. That could equate to roughly 360 individuals. An additional 680 people with assets above 3.4 million euros would also remain liable for the tax.
In total, approximately a thousand taxpayers on the islands—among the wealthiest—will continue to pay Wealth Tax, but at markedly reduced rates thanks to the reform backed by Vox in exchange for PP support on the regional budgets.
Alejandro del Campos, a DMS Legal attorney, recently projected that those still paying Wealth Tax in 2025 could see annual savings ranging from 40,000 to 80,000 euros in most cases.
Llorenç Pou reminded that Spain features three progressive taxes—Inheritance, Inheritance and Income—paid most by the highest earners, and that the Marga Prohens administration reduced all three, either on its own initiative or at Vox’s request.
Two notable discounts
On income, the socialists describe this deduction as modest, while the cut in amounts for those with greater wealth in the top brackets is substantial. Vox’s reform is seen by opponents as increasing inequalities.
It is noted by PSIB-PSOE that only about 10% of taxpayers, the wealthiest group, are currently paying the tax on their assets.
PSIB estimates that changes to Inheritance tax will reduce the autonomous community’s income by more than €65 million per year.
Who stopped paying inheritance
Socialists estimate that around 8,000 wealthy individuals in the Balearics will not owe a single euro on their assets, a consequence of Vox’s reform in exchange for support for the 2024 regional budgets. Those with assets between 700,000 and 3 million euros fall into this category.
Who will pay less
About a thousand Balearic taxpayers with assets over three million euros will still pay tax, but their reductions could be substantial, ranging from 40,000 to 80,000 euros annually.
Regional impact
The Balearic Islands are projected to lose more than €65 million due to the tax changes, with the gains flowing to those with the largest fortunes. This is why the socialists describe the move as harmful to public finances.