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The pandemic led to a significant rise in poverty. | Teresa Ayuga

Andrew EdePalma07/09/2022 08:56
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Figures released this week by the Tax Agency point to a 22% increase in the average wealth of individuals in the Balearics who have to pay wealth tax on 700,000 euros and above. In 2020 this average was 3.9 million euros; in 2019 it was 3.2 million.

The percentage rise was the highest in the country, while the Balearics ranked third in terms of average wealth behind Galicia (six million) and Madrid (10.3 million). The number of individuals who made a declaration for wealth tax was 8,484 - 127 more than in 2019.

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By contrast, the first year of the pandemic resulted in a 46% increase in the number of people in the Balearics at risk of poverty and/or social exclusion, the largest increase in Spain and almost double that of the next region on the list, La Rioja (25%).

The 2020 report for Spain by the European Anti-Poverty Network shows that, in the Balearics, the pandemic had the greatest impact on the incomes of the most vulnerable and that it reversed the positive progression in terms of reducing the risk of poverty. In 2019, the indicator of risk of poverty was down to 15.1% compared with 26.3% in 2015. This rose to 22% in 2020.

The report reveals that 266,217 residents of the Balearic Islands were at risk of poverty in 2020, an increase of almost 90,000 from 2019.