The tax on the sale of luxury properties has gone up. | Archive

Balearic government tax revenue from property sales in 2022 was the highest ever - 812.28 million euros, 18% more than in 2021 and also well above the government's forecast of 537 million.

This revenue accounted for more than half the total revenue from the Balearics own taxes - others include the tourist tax and the wealth tax. The total was 1,463.29 million euros, which was up by 277.4 million compared with pre-pandemic 2019.

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For 2023, the increase in interest rates, according to some analysts, could lead to a fall in real estate activity of up to 30%. However, prices aren't forecast to fall. The Balearic finance ministry has budgeted for 798 million euros, a figure that reflects increases in the tax on the purchase of luxury homes - up from 11.5% to 12% for properties valued at one million euros and more and to 13% for two million or more.