The new government of Mariano Rajoy has today announced that income tax will rise with percentage increases varying according to income. The lowest level, i.e. income below 17,707 euros per annum will, be subject to a rise of 0.75%, that up to 33,007 will be taxed by 2% more and the highest earners, over 300,000 euros will see their tax bills increase by 7%.
Of shorter-term measures, there is to be no increase in the cost of electricity but gas will rise on average by 0.5%.
Another measure, which affects Mallorca in particular, is that central finance for the Balearics is to be eliminated along with that to three other regions, including Catalonia.
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