The Estepona City Council Implements a Historic Tax Cut: 7 Million Euros in Savings for Residents

Property tax (IBI) bills have seen an average reduction of 50%, while services are being strengthened and investments are increasing thanks to the achievement of “zero debt.”

The Estepona City Council continues to build on the best economic indicators in its history after achieving “zero debt” a year ago. After paying off more than 300 million in debt inherited in 2011, the City Council maintains a sound financial position in its public accounts, which has allowed it to implement a historic tax cut, with more than 7 million euros allocated primarily to provide property tax (IBI) rebates to registered residents and to exempt the most vulnerable groups from paying the garbage collection fee.

After eliminating the debt burden that forced the City Council to make daily payments averaging 60,000 euros, José María García Urbano’s administration launched an ambitious tax reduction plan last year, which this fiscal year has reached a record high in funds allocated to ease the tax burden on residents.

Since 2012, property tax bills in Estepona have seen an average reduction of 50%, thanks to the measures implemented by the City Council after achieving zero debt last year. In addition, there is a 3% reduction—applicable to the IBI, the Business Activities Tax (IAE), and the garbage collection fee—for those who set up direct debit for their bill and pay it within the voluntary payment period.

Mayor José María García Urbano emphasizes that with these measures, “the City Council continues to demonstrate its fiscal support for all families in Estepona—and especially for the most vulnerable groups—while maintaining its commitment not to raise taxes on citizens and to offer assistance to those who need it most.” He further emphasizes that “this has been achieved without any reduction in either investments or the provision of services, which, on the contrary, have been strengthened.”

To benefit from the residency discount, individuals receive it automatically on their bill; for the garbage collection fee, retirees and the long-term unemployed who are registered residents of the town are exempt from payment, which will benefit approximately 1,812 bills.

The Estepona City Council has recently implemented a pioneering measure to reduce the garbage collection fee for residents who recycle at the recycling center. Under this program, a 3% discount is applied to the bill for those who make at least three annual drop-offs at the recycling center for waste types for which there are no street-side bins, further expanding tax relief measures while promoting recycling and environmental protection.

“These tax relief measures are possible because the City Council has put the municipal accounts in order and maintains a policy of fiscal discipline and spending control, while also being one of the municipalities in Spain that invests the most per capita in public spending to stimulate the local economy,” the City Council stated.