The Tax Agency has become much tougher on tax fraud. | Juan Miguel Gíménez

In 2017, the Tax Agency took in revenue of 336.4 million euros as a result of its campaign in the Balearics against tax fraud. This was a four per cent increase over 2016, though more significantly it represented a rise of 65% compared with figures from 2011.

Last year, the black economy and sophisticated tax fraud were targeted in particular. In addition, there were actions related to undeclared income from holiday rentals, to the control of tax refunds, and to hotel, nightlife and retail activities.

There were over 3,000 inspection actions in 2017, which included a doubling to more than 600 of holiday lets and different establishments. There were more than 1,100 investigations into the movement of money to check on possibly fictitious businesses or other other entities, and there was an intensification of checks on the transfer of property assets by residents and non-residents.

The Tax Agency highlights the fact that there was a 30% increase in the number of denunciations for undeclared holiday rentals.