Estepona approves IBI tax reduction saving families over 6 million euros
The City Council plenary approves a credit supplement enabling an average 20% IBI tax cut for 37,988 households
Estepona’s City Council has approved an economic mechanism that will enable the largest-ever reduction in the Property Tax (IBI) for 2025. Thanks to the elimination of municipal debt, residents will benefit from a total saving of over six million euros.
Estepona will start 2025 with a significant reduction in the Property Tax (IBI), following an agreement approved in the City Council’s plenary session. Specifically, a 20% average reduction will be applied to 37,988 residents' bills, representing a total savings of 6.1 million euros. This measure is one of the most prominent of the municipal management in recent years, reflecting the city’s financial solvency after settling a debt of over 300 million euros.
The reduction, which will be reflected in the 2025 bills, is made possible thanks to a treasury surplus of 45 million euros from the 2024 financial year. Estepona's Mayor, José María García Urbano, emphasized that the funds come from both savings from the previous year and approximately 1.4 million euros originally allocated to debt repayment, now redirected toward tax cuts after the debt was fully paid off.
"This is another step in our commitment to Estepona’s families," said García Urbano. He also pointed out that since 2011, the city has successfully reduced the IBI by 50%, showcasing the effectiveness of the fiscal policies implemented by his government.
This reduction will not only relieve the tax burden for Estepona’s residents but also reinforce the city’s position as an example of responsible financial management. The measure has been praised by many residents, although it has sparked criticism from some sectors, as the opposition groups (PSOE and VOX) did not support the proposal.
Fiscal Updates
In addition to the IBI reduction, the City Council of Estepona has announced a new 3% reduction in the waste collection tax for residents who make at least three visits to the city's Recycling Point. This measure applies to waste such as electronic appliances, furniture, oils, light bulbs, and other materials that do not have designated public containers.
To benefit from this reduction, users must submit an application to the Provincial Collection Board during the first quarter of 2026, along with the previous year’s waste collection receipt and the proof of deliveries made at the Recycling Point.
The Mayor lamented that opposition groups did not support these measures, which directly benefit the citizens, criticizing them for not defending the interests of the community. Despite the political disagreements, the fiscal changes are widely appreciated by residents, especially in an economic context where tax relief is a priority.
With this important IBI tax cut and the new reduction in the waste collection tax, Estepona's City Council continues to demonstrate its commitment to the citizens by easing their tax burden and promoting savings policies. The city will continue exploring further fiscal measures in the coming years, now that it has overcome the heavy burden of inherited debt.