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Alicante is one of the large cities in Spain with the lowest local tax pressure per inhabitant, with 28.7% less than the average of the 27 most populated cities, according to data from the municipal income budgets of the city councils of Spain of more than 250,000 inhabitants, and the Index of Economic Freedom of Spanish Cities, ILECE 2021.
Specifically, and according to this information, each Alicante pays an average of 773 euros a year in municipal taxesa figure that represents approximately half that of Madrid (1,448 euros) and more than half that of Barcelona (1,620 euros), the most expensive big city to live in.
In the comparison, they also stand out the data of Valencia, with 1,068 euros, which is slightly more expensive than Seville, with 1,184, and is very close to Zaragoza (1,055). Malaga, a city comparable to Alicante in terms of population and production model, has much more tax pressure, with 1,156 euros, while neighboring Murcia stands at 936.
Towns with more than 250,000 inhabitants who are closest Vigo, with 868 euros in taxes per year, and Gijón, with 901.
For all this Alicante was chosen in 2021 as the great Spanish city with the greatest economic freedom in Spainaccording to the ranking prepared by the Foundation for the Advancement of Liberty, and which analyzes the economic freedom of the 50 most populous municipalities in Spain.
Alicante there obtained 64.87 points, which is considered a index of “moderate” freedom, according to the foundation. The city was the second most economically free city in 2018, and is the first since 2019.
Less and less contributions
In this sense, the Councilor for Economy and Finance of the Alicante City Council, lydia lopezexplained at the XXXIV National Congress of Tax Advisors, held in Alicante, that “contributions to local corporations that they receive from government entities decrease each year” while “The consistories increasingly have tighter budgets”.
All this “while facing a significant burden of public services, that in most cases they do not have the necessary financing”.
As he stated, the “continuous grouping of the population in urban centers means that cities face the continuing challenge of offering more public services to citizens and businesses”, with a significant “reduction in income, and structural budget deficits that hinder the provision and quality of adequate municipal services”.
Faced with this situation, the councilor assured that from the municipal governments “we demand greater financing from local corporations” and that it be “fairer, as we face an uncertain future, with ever-increasing budget cuts, and local corporations continue to seek formulas to balance and optimize our income with which to offer adequate public services”.
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