Alicante sees significant boost in tax revenue: 260 million in three months with a 20% increase

Alicante's government attributes the positive trend to the favourable real estate market and reduced rates for priority groups such as young people and large families. The Property Transfer Tax also shows a significant increase in recognised rights, reaching 199.9 million, solidifying its importance in the overall regional tax revenue.

The Finance and Economy Minister, Ruth Merino, highlights that the first quarter reports of 2025 indicate that the Consell's tax reform "not only did not hinder revenue collection but also encouraged the formalisation of new transactions." She emphasises that these figures confirm the stimulating effect of the Generalitat's initial tax cuts, particularly the abolition of Inheritance and Donations.

This effect is especially noticeable in a region like Alicante, with a high number of transfers and inheritances. In the case of the Inheritance Tax, Alicante has collected 13.6 million euros, representing a 42.1% increase compared to the previous year. Recognised rights also grew by 35%, reaching 16.2 million.

Finally, the Donations Tax marks a significant advance, with 1.1 million collected (+59.3%) and 1.5 million in recognised rights (+31.6%), aligning with the encouragement of early and voluntary personal and family wealth transfer as a result of the new rates approved by the Consell.

Across the Valencian Community, the ATV's tax revenue in the first quarter of 2025 reached 538 million euros, marking a 15.8% increase compared to the same period last year. This rise, emphasised by sources from the Finance and Economy department, consolidates the economic recovery in the Community following the impact of the October 2024 DANA and "confirms the effectiveness of the fiscal measures implemented by the Consell."

Merino notes that the DANA caused a temporary decrease in economic activity in the affected areas, leading to a reduction in sales and, consequently, tax revenue. "However, support measures and gradual recovery helped mitigate these effects in the medium term," explains the Finance and Economy Minister.

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The Property Transfer Tax, which constitutes the bulk of the revenue managed by the ATV, generated 357 million euros, 20% more than in the first quarter of 2024, "driven by increased activity in the real estate and construction sectors."