La tax revenue in the Balearic Islands reached €2.59 billion during the first half of 2026. This was €103.1 million more than in the same period last year, representing an increase of 4.14%. Personal income tax accounted for much of this growth, while VAT revenue also increased.

Between January and June, revenue from personal income tax (IRPF) reached €947.8 million, compared with €879.9 million in the first half of 2025. This was an increase of €67.9 million, or 7.72%, accounting for almost two-thirds of the overall growth in tax revenue.

Tax revenue

VAT revenue also increased. It brought €811.6 million into the regional coffers, €29 million more than a year earlier, representing growth of 3.71%. By contrast, excise duty revenue fell by 2.10% to €235.5 million.

Almost €2 billion from the main taxes

Together, personal income tax, VAT, excise duties and taxes on bank deposits generated €1.99 billion. In the same period of 2025, they had generated €1.90 billion. The difference was €91.8 million, an increase of 4.83%.

Meanwhile, regional and devolved taxes generated €599.3 million, up 1.92%. Within this group, Property Transfer Tax (ITP) raised €330.6 million and Stamp Duty generated €112.7 million.

The Tourist Tax generated €39.5 million during the first half of the year. Meanwhile, the water sanitation levy brought in €40.2 million.

According to the Balearic Government, the increase in revenue is linked to the performance of the economy and labour market. First Deputy President and Minister for Economy, Finance and Innovation, Antoni Costa, particularly highlighted personal income tax as the main driver of the increase in public revenue.

Higher tax revenue in the Balearic Islands amid tax reform

The growth in tax revenue in the Balearic Islands comes alongside the tax measures introduced by the Balearic Government since July 2023. According to figures from the regional government, these tax cuts and relief measures have saved residents a total of €1.44 billion during the first three years of the parliamentary term.

A significant proportion relates to inheritance tax. A total of 38,925 families have benefited from the relief, with combined savings of €1.09 billion.

Reductions and relief on Property Transfer Tax have also been introduced for certain first-time home buyers. These measures have benefited 10,801 people, with accumulated savings of €116.46 million. This is in addition to the expansion of regional personal income tax deductions for different groups.

The Balearic Government says these results demonstrate that tax cuts can be combined with growth in public revenue. Over the past three years, the region’s public debt has also fallen by more than €510 million.