A bird's eye view of Elda castle and the town surrounding.
State funding: Elda and Alcoy outperform larger Costa Blanca cities. Image: Comunitat Valenciana Turisme.

When it comes to state funding, size is not everything on the Costa Blanca.

New figures for 2026 show that while Alicante and Elche receive the largest overall payments from central government, it is medium-sized industrial cities such as Elda and Alcoy that generate the highest returns per resident.

The data, based on compensation linked to Spain’s Business Activities Tax (IAE), highlights the continuing economic strength of Alicante Province’s traditional industrial heartlands.

Elda tops the provincial ranking

Elda emerged as one of the strongest performers in the province, generating an estimated €2.99 million in state compensation.

When measured against population, the figure becomes even more striking. The city receives the equivalent of €57.14 per resident, the highest rate among the municipalities analysed.

Alcoy follows in second place with €47.40 per inhabitant and a total allocation of €2.81 million.

Both cities have long-established industrial economies, with manufacturing and business activity continuing to play a significant role in local prosperity.

Industrial towns outperform larger cities

Although Alicante and Elche receive far greater sums overall due to their larger populations, their per-capita figures are considerably lower.

Elche receives almost €7.9 million in total compensation, while Alicante receives €6.4 million. However, when those figures are divided across their populations, both fall behind several smaller municipalities.

The results underline the importance of business activity and industrial output in determining how much funding local authorities receive through state redistribution mechanisms.

Dénia, Crevillent and Benidorm also performed strongly, while towns such as Aspe, Villena, Xàbia and Petrer recorded solid results thanks to diversified local economies.

Tourist towns rank lower

Several coastal municipalities that rely heavily on tourism recorded lower per-resident figures.

Torrevieja, Calpe and l’Alfàs del Pi all fell below the provincial leaders, while Santa Pola, Pilar de la Horadada, Mutxamel and Sant Joan d’Alacant appeared towards the bottom of the ranking.

La Vila Joiosa recorded the lowest figure among the municipalities included in the study.

The figures do not necessarily reflect the financial health of individual councils, but they do illustrate how industrial and commercial activity continues to influence the distribution of state funding.

More than population alone

The funding forms part of Spain’s Participation in State Taxes system, the mechanism through which central government redistributes revenue to local authorities.

The formula takes into account several factors, including population and economic activity, meaning municipalities with strong business sectors can achieve higher returns per resident than much larger cities.

For towns such as Elda and Alcoy, the latest figures provide further evidence that industry remains a major economic driver, helping to support local investment, infrastructure projects and public services.

 

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