Eastern Costa del Sol town reduces IBI property tax to compensate for Spain's new rubbish tax

The mayor told SUR that she didn't know how much the rebate would be but that the town hall is working on a "package of discounts for both families and businesses"

Eugenio Cabezas

Algarrobo

Friday, 11 April 2025, 12:57

Algarrobo town hall on the eastern Costa del Sol has voted to lower its IBI rates, (the tax paid by property owners to the town hall for local services), to compensate for the new rubbish tax which came into force across Spain on Thursday 10 April.

The compulsory introduction of the rubbish tax in municipalities with more than 5,000 inhabitants continues to generate great political and social debate. Mayor of Algarrobo, Natacha Rivas, has announced that town hall "is already working on a lowering of the IBI in the municipality to try to compensate the residents of the rubbish tax imposed by the government of Pedro Sánchez in all the municipalities of Spain".

She went on to explain that the town hall will apply a "package of discounts for both families and businesses". Rivas explained that, until now, the cost of rubbish collection and treatment was covered directly by the local councils, while Law 7/2022 obliges residents to pay for it from this April. "We still don't know the amount of the rebates, we have to see the impact of the modification of the rate and see the effect on the IBI," she told SUR.

"The local councils and, above all, the residents lose," Rivas said in the statement, in which she claimed that this "imposition comes without dialogue or funding mechanisms for local councils".

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