According to a report from the Fundación Civismo, it takes residents in the Balearics the equivalent of 197 days to meet their annual tax obligations (direct and indirect taxes). In theory, therefore, they must work until July 16 before they are free of these obligations.
The report into tax demands on families in times of recession indicates that the Balearics rank sixth among Spanish regions in terms of how long is needed. The national average is July 13, with Catalonia having the longest period (up to July 19) and Murcia the shortest (July 10).
The calculations are based on net and gross salary data in each region and differences in regional taxation. These show the relationships between income and tax demands.
Net salaries vary depending on region, as different income tax rates can be applied. In the Balearics, someone with a gross salary of 20,000 euros receives a net salary of 16,347 euros, the fourth lowest in Spain (just ahead of Murcia, Aragon and Catalonia).
Julio Pomes, the president of the foundation, says that "there are more and more days when we work only to pay the treasury". "People are not aware of the taxes they pay." In 2020, it took until June 29 for tax commitments to be paid in the Balearics, 17 days earlier than in 2022.
He adds that IVA (VAT) is "doubly harmful" at times like the present, with inflation reaching double digits. Consumers have to allocate a greater part of their income in order to buy products, for which the prices have increased.