Balearic residents are forecast to pay 1,016 million euros in taxes this year to the regional government. With the exception of last year, this will be the highest amount of tax revenue since 2008. In that year, which is when the financial crash occurred, the government took in 856 million euros. The revenue owed much to house prices.
The revenue then plummeted and reached its lowest in 2012. This loss of tax revenue was what contributed to the liquidity crisis in the Balearics and the bailout by Madrid. The massive debt that created is something with which the government now has to contend.
The balance for 2018 is due to confirm revenue of 933 million, so 2019 tax-raising will be the highest ever. Excluded from the figure is anything for the tourist tax. While some residents do contribute to this revenue source, it is of course basically a tax on non-residents.
Per resident, tax revenue in 2019 will work out at 900 euros and seven cents. When revenue bottomed out in 2012, the per capita amount was just under 360 euros.
Roughly half of the total revenue will be from "asset transfers", in other words the sale and purchase of properties - the projected figure is 574 million euros. Other amounts include 107 million inheritance tax and 94 million euros from the water charge.
Putting this revenue in some sort of context in terms of government spending, the 1,016 million is more or less equivalent to the whole education budget for 2019.
