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Malaga's tax payments to the state coffers continue to go through the roof. Last year was another record year - the fourth in a row - for tax collection in the province, totalling 5.5 billion euros. This was the contribution of individuals and companies based in Malaga to the state treasury for national taxes (mainly personal income tax, corporate income tax and IVA sales tax on goods and services) after increasing by 17.4% on the total from a year earlier, according to figures released on Monday by Spain's tax agency (AEAT). With this increase, which doubles that recorded at national level (8.4%, to close to 295 billion euros, also a record high) and which is the fourth largest increase in Spain after Vizcaya, Almeria and Cuenca, Malaga is now the seventh province that contributes the most to the public coffers (sixth in terms of population). In 2023 Malaga stood in eighth place, but last year it overtook Alicante, which was just over 200 million euros behind Malaga at nearly 5.22 billion euros.
This progress is consistent with the province's economic growth that in 2024 also exceeded that recorded in Spain as a whole. The tax collection figure is simply a reflection of economic activity, that is, the performance of the labour market, consumption and business profits. If employment and business critical mass are growing faster in this province than in Spain as a whole, it is logical that tax revenue should also be more buoyant.
Ahead of Malaga in terms of the tax contributions to public coffers are, in first place, Madrid - the largest by far - with close to 130.4 billion euros collected. The country's capital is followed by Barcelona with just over 50 billion euros. In third place in the ranking is Valencia (over 13.62 billion euros) and Seville comes fourth with nearly 7.8 billion euros. Then come the Balearic Islands and La Coruña, with just under 7.25 and 6.66 billion euros respectively.
This means that, in Andalucía, the province that contributes most to the national collection of state taxes is Seville with a 7.78 billion-euro total compared to the 5.5 billion euros paid by Malaga. However, a closer look at the tax-by-tax analysis reveals some curious facts. For example, Malaga exceeds Seville in revenue collection in two of the main tax categories: IVA (1.86 billion euros compared to Seville's nearly 1.81 billion euros); and corporate income tax (over 1.02 billion euros in Malaga compared to 832 million euros in Seville). However, the biggest difference between the two provinces is in personal income tax (IRPF), because the 2.27 billion euros in Malaga pale in comparison to the nearly 4.72 billion euros in Seville.
Be that as it may, Seville did not increase its tax collection total to the same level as Malaga in 2024: the increase was limited to 10.2% whereas Malaga's improved by 17.4%.
The improvement in tax revenues recorded in the province of Malaga is sustained by the main tax figures, each of which also set record levels last year. The highest growth was recorded by corporate income tax (the tax on corporate profits), whose yield exceeded 1.02 billion euros, up 76.7% from 580.8 million euros a year earlier. This is because net receipts rose at rates close to 20% and rebates fell by half (from 501 million euros in 2023 to 254 million euros in 2024). This improvement has also led this tax to exceed its 2007 record result. Such an improvement is attributed not only to the elimination of tax benefits, but also to the aggressiveness of the tax inspection processes undertaken in Malaga due to the fact that the economic activities that prevail in the province are those in which the tax agency carries out the most thorough checks.
Meanwhile, IVA receipts improved by nearly 12% last year to 1.86 billion euros. This tax, therefore, provided better returns than at the national level where its growth was limited to 7.9%. This is not a one-off phenomenon, rather a recurring one, and is attributed to the strong performance of consumption in Malaga province. This is due to stronger demographic growth than in Spain as a whole and, above all, to its large, floating population made up of tourists and frequent visitors.
Turning to individuals, the people of Malaga paid 2.27 billion euros in personal income tax, which represents a year-on-year increase of 9.5% compared to a year earlier. This figure is also higher than in Spain as a whole (up 7.6%) and is explained by a higher level of job creation in the province than that recorded countrywide.
However, there are also some taxes, the smaller ones, which are less important in terms of their contribution to the public coffers, which recorded decreases in collections for Malaga last year. For example, excise tax receipts in Malaga fell by 58% to 17.6 million euros, and non-resident income tax receipts fell by 3% to 213 million euros.
AEAT, in addition to updating the figures for the year 2024, has also reported on how the figures are looking for the first two months of 2025, which once again show the Costa del Sol province in a good light and are a good indication of how the new financial year may evolve.
Between January and February Malaga has already collected 1.1 billion euros in taxes, 20.7% more than in the same period a year earlier. With this, the province also doubles the rate of growth registered at national level (+9.3%) to almost 50 billion euros.
Corporate income tax collection is negative with figures of 5 million euros compared to a negative of 43 million euros for the same period of 2024). Personal income tax has already brought in more than 500 million euros (15% up) and IVA nearly 500 million euros too (11.6% more). In addition, Non-resident income tax has improved its yield by nearly 70%. Yet revenue from excise taxes continues to fall in Malaga with a further 12.2% drop in the first two months of this year compared to the same period for 2024.
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