The Catalan Treasury closed last year close to breaking a revenue record.

BarcelonaIn the context of the negotiations for the collection of all taxes resulting from the agreement for the new financing of the PSC and ERC, the Catalan Treasury nearly broke a record for revenue from its own and transferred taxes last year. The Catalan Tax Agency (ATC), the body on which these changes hinge, collected a total of €5.286 billion from these items in 2024, the second-highest figure ever achieved, only slightly surpassed by 2006 (€5.362 billion), when the Generalitat had virtually no taxes of its own. Last year's figure represented a 12% increase over the previous year, thanks to the boost in taxes linked to real estate activity, according to data from the Catalan government.

The increase in revenue was concentrated in transferred taxes, which, at €4.893 billion, saw a 13% increase. Thus, total revenue grew by 12% compared to 2023, with 115% of the budget being executed, although own taxes, at €393 million, registered a 1% decrease.

The most significant transferred tax—the property transfer tax and documented legal acts (ITPiAJD), which taxes the purchase and sale of second-hand homes, which account for the bulk of market transactions—increased by 12.7% at €2.774 billion. The other pillar of transferred tax revenue, the inheritance and gift tax, increased by 17.5% at €1.153 billion. The wealth tax, at €761 million, grew by 9.5%.

Local taxes, on the other hand, with very little weight, experienced mixed results. Taxes on packaged sugary drinks, with only €27 million, saw their revenue reduced by 10.1%. Taxes on vacant housing soared by more than 250%, but only represented €7 million in revenue, and those on facilities that impact the environment, with €188 million, fell by 6.4%, according to data from the Generalitat (Catalan Government).

Local taxes—such as those levied on vacant apartments and large retail stores—and ceded taxes—such as the ITPiAJD (Inheritance and Gift Tax), the inheritance and gift tax, and the wealth tax—are the only ones currently managed, settled, and inspected by the ATC1 (Association of Autonomous Communities of Catalonia), and they accounted for around 10 million Catalan pesos. The remainder, up to more than 29 billion euros, is managed by the State Treasury (AEAT) within the current legal framework.

The Personal Income Tax campaign, which began online on the 2nd of this month and begins in person on May 6, has been established as a testing ground for the ATC's management of this tax, scheduled for next year, according to the agreement with the Republicans. The Minister of Economy, Alícia Romero, announced the incorporation of 90 permanent employees throughout this year and another 102 temporary employees to strengthen the income tax campaign.

The Government's intention is to strengthen the structure of the ATC to act as a "test bench", since this body is the pillar on which the financing model agreed between the PSC and ERC is based, based on the management and collection of all taxes, starting with personal income tax as early as year 2. 6 offices throughout Catalonia to facilitate the filing of income tax returns in person.

The body currently has more than 800 people and the president, Salvador Illa, acknowledged in Parliament that adapting to the model will require a "fourfold increase" in staff. The objective is to take charge of all taxes, including those that currently depend exclusively on the central administration, which is why last month the Generalitat, the Catalan tax authorities and the state tax authorities reached an agreement.

The agreements with the state tax administration include shared management of the vehicle registration tax, but not its transfer. This system allows for greater self-governance to the Generalitat without having to approve legislative changes. These initiatives have already provoked complaints from the group of tax inspectors, integrated into IHE.