The province of Alicante leads in direct tax collection for the Generalitat, driven largely by a booming housing market that has turned the autonomous administration into a steady revenue engine. Valencia and Castellón as a whole show strong numbers in real estate, with January through June this year registering a 63% rise in property transfer income and 359 million euros in Alicante. When looking at total revenue managed by the Valencian Tax Office (ATV), Alicante contributed 512 million euros to the regional treasury in the first half, up 54% from the previous year in particular.
Official data from the Ministry of Finance and Economic Model, led by Arcadi Spain, indicate that the province and the Community are not only sustaining growth after the pandemic disruptions but, in recent months, the rise has become even more pronounced. Alicante now contributes nearly half of ATV’s regional revenue, a trend set against the backdrop of energy crises and geopolitical uncertainty stemming from the Russia-Ukraine conflict and its impact on European economies.
Buying homes and legacies lift Consell’s tax intake above pre-pandemic levels
From January to June, ATV collected 512 million euros for provincial operations, while the Valencian Community as a whole reached 1.063 billion euros, up about 34% from the previous year. The provincial figure is 20 percentage points lower than the regional average, yet it remains clearly on an upward trajectory.
Across various categories, the first six months of the year saw the Troubled Real Estate Transfer Tax and related real estate taxes rise, as did the Documented Legal Transactions Tax charged on mortgage deeds. In Alicante, revenues in this area climbed 26%, from 49 million to 62 million euros. Regionally, the increase was smaller than in Alicante but still notable, rising from 127 to 152 million euros, a 19% gain.
Real estate sales and mortgage activity surged as the Community posted record quarterly housing transactions in the first half of the year. The total number of home sales recorded from April to June reached 24,906 — the highest quarterly total in fifteen years, according to data from the Valencia Community College Dean and the Spanish Property and Commercial Registrars.
Covid legacy
The Inheritance Tax also rose significantly, reflecting higher death rates during the pandemic, especially among the elderly. As the pandemic eased, taxes began to accrue on inheritances from deaths that occurred last year, a trend noted by ATV’s leadership. In Alicante, successor taxes reached 62 million euros by June, up from 45 million in the same period last year, an increase of 38%. Across the Community, half-year collections rose to 150 million euros, up from 130 million in 2021, marking a 15% increase for the regional treasury.
The broader picture shows ATV managing a growing inflow from estate matters and legacies, aligned with a regional pattern of higher receipts through the first half of the year.
The overall tax income picture from ATV also highlights a rise in donations. Provincial operations generated about 3.72 million euros in the first half of the year, a 23% increase from the same period in 2021, reflecting a shift toward greater family generosity in response to uncertain times.
Chasing the scammer
ATV operates on two fronts: assisting taxpayers in fulfilling obligations and a robust effort to curb evasion. While support is available to those who make honest mistakes, the agency intensifies actions against deliberate tax avoidance. ATV has run campaigns to promote voluntary compliance and self-assessment, a strategy that reduces penalties for late payments when possible. Still, enforcement remains steadfast for those who try to dodge obligations altogether. In 2021, ATV’s controls and investigations yielded 94.9 million euros, a 22.57% rise from 2020.
These efforts are directed at individuals who fail to submit self-assessments, relying on ATV interventions rather than voluntary compliance.
Play-related taxes rise 43%
Taxes on gaming activities in the province surged in the first half of 2022 compared with the previous year. By June, ATV had collected around 25 million euros from gaming, up from 17.5 million in the same period of 2021, a 43% increase. The pandemic briefly halted much activity, but the sector is recovering regionally. The Finance and Economic Model department estimates overall growth in the Valencian Community at about 52%, approaching 68 million euros in the mentioned period.
Balance remains strong for slot machines near Alicante, which generate substantial revenue for regional treasuries through ATV-administered taxes, plus additional income from online gaming. Government data show Generalitat collecting around 19.5 million euros in the first half for slot machines, with regional totals near 45 million.
Bingo revenues in Alicante rose to 4.8 million, up from 1.5 million in the prior year, a 225% increase. The regional total also rose sharply, from 3.3 million to 11 million. The same trend was seen in casino-related odds, with Alicante reporting 1.6 million euros, up 52%, and the region totaling 2.6 million, an 84% rise from the previous year.