12-05-2014M.A. CAELLAS

Income tax for the wealthier is set to rise in the Balearics next year.

This is the one tax measure that the regional government has so far decided upon as it sets about firming up the budget for 2016, and it is a move that will be needed because of the central government intransigence vis-à-vis the deficit for next year.  

The tax increase is likely to apply to individuals earning 65,000 euros or more, President Armengol noting that the Balearics currently has one of the lowest tax rates for higher earners: only the Madrid community has lower rates. On the other hand, those earning between 25,000 and 60,000 a year pay slightly more than the national average.

The government is, therefore, planning a progressive system of taxation which will involve a top rate of 45%, which is lower, for example, than the 49% of Catalonia.

In addition to this adjustment to income tax, the government is looking at introducing a tax surcharge on the purchase of luxury properties with a value of two million euros or more.

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