Catalonia's government collected €692 million from inheritance tax in six months. Property transaction taxes also surged, reflecting a hot real estate market. The trend signals higher fiscal pressure for heirs and buyers.
The Generalitat de Catalunya has recorded a sharp increase in tax revenue from inheritances, with collections from the Impuesto de Sucesiones y Donaciones rising by 32.1% in the first half of the year compared to the same period last year. According to the latest budget execution report, the regional treasury brought in €692 million from this tax between January and June, €168 million more than a year earlier. The surge comes as the Catalan government continues to apply stricter tax rules for wealthier heirs, a regime introduced in 2020 that increased fiscal pressure on larger inheritances.
June alone saw €126 million collected from inheritance and gift taxes, marking a 66% year-on-year increase for that month. Officials attribute the growth to strong performance in financial markets, with the Ibex reaching record highs, and to soaring real estate prices that show no sign of slowing. The upward trend in both sectors has directly benefited the Generalitat's finances, as noted in the official report.
Despite calls from business groups to reduce inheritance taxes in line with regions governed by the Partido Popular, the Catalan administration has maintained its current approach. The government initially projected €1.059 billion in inheritance tax revenue for the year, but if the current pace continues, actual collections could surpass this target.
Property transaction taxes remain the largest direct source of income for the Generalitat. In the first half of the year, the Impuesto de Transmisiones Patrimoniales, which mainly affects second-hand home sales, generated €1.314 billion—up 9.4% from last year. The Impuesto de Actos Jurídicos Documentados, another tax linked to notarial transactions, also rose by 17.6%, reaching €849 million. Additionally, a new tax on financial institutions' interest and commission income contributed €290 million, already covering nearly 79% of the annual forecast of €366 million.
For context, inheritance and gift taxes in Spain are managed at the regional level, leading to significant differences in rates and deductions across autonomous communities. Catalonia has traditionally maintained higher rates compared to regions like Madrid or Andalusia, where tax relief is more generous. The recent surge in collections reflects both the strength of local asset markets and the impact of regulatory changes. As property values and financial assets continue to climb, tax revenues from these sources are likely to remain a key pillar of the Catalan budget. The ongoing debate over tax policy highlights the tension between fiscal needs and demands for lower levies on families and businesses.
