Marbella is reducing property tax for the hospitality sector and offering tax relief on building work for properties let at controlled rents

The council is amending the tax system to boost the economy, provide relief to the tourism sector and encourage the provision of affordable housing

Félix Romero, councillor for finance and municipal spokesperson. (SUR)

Marbella

05/11/2026 Actualizado a las 07:38h.

Marbella town hall will use its tax policy as an active tool for economic stimulation and social intervention. This was the view put forward by ... the councillor for finance and spokesperson for the governing team, Félix Romero, after announcing the regulatory changes to tax legislation approved at the last council meeting. The package of measures aims to ease the pressure on key sectors such as leisure and the hospitality industry, to promote the creation of a stock of affordable rental housing, and to introduce significant tax relief for large families and on inheritance tax.

In the area of business support, the main change concerns the property tax (IBI) levied on commercial and tourist premises. The council has agreed to reduce the special differentiated rate levied on properties used for hospitality and leisure activities, lowering it from 1 per cent to 0.82 per cent with immediate effect. This measure effectively reverses half of the increase applied in previous financial years, with a firm commitment to eliminate the remaining increase during the coming financial year.

Romero explained the circumstances that led to that tax and justified the current decision: “A special one per cent rate was introduced at a very delicate time. I believe it is only fair that we show our appreciation and also fulfil our commitment by reducing this differentiated tax rate.” This reduction will inject almost 1.108,000 euros into the local economy, a sum which the council will no longer collect but which will remain in the hands of the businesses concerned.

To promote affordable housing, the ICIO tax is being reduced by between 75 per cent and 90 per cent, and the IBI tax is being cut by up to 95 per cent with no time limit on the reduction

To tackle the problem of access to housing, the council is implementing an emergency plan through the scheme of rent-controlled tenancies. Developers who agree to capped rents will receive rebates of between 75 and 95 per cent on the tax on construction, installations and work (ICIO); a tax which accounts for four per cent of the construction budget and which, therefore, the council believes could constitute "a very significant incentive".

In addition, the town hall will grant property tax relief of up to 95 per cent with no time limit, together with a 50 per cent discount for projects involving municipal land concessions. “The aim is to ensure that more homes are available to rent at affordable prices and that they remain in this category for longer,” explained Romero, who added that this measure could be “particularly useful in enabling many young people to secure their first home and, at the same time, to save more for the future”.

Self-sufficiency and support

The spokesperson has described these measures as part of the council’s fiscal restraint policy and has confirmed that the standard rate of property tax will remain frozen at 0.65 per cent, compared with the statutory range, which generally varies between 0.4 and 1.2 per cent. He also highlighted the existence of other tax benefits, such as those for large families, which can be as high as 50 per cent; those applicable to business activities tax (IAE), of up to 50 per cent during the first five years of operation; or those provided for under the tax on motor vehicles.

He also highlighted the reductions in municipal capital gains tax for transfers by inheritance, with rates of 95 per cent, 50 per cent and 20 per cent depending on the circumstances and the cadastral value of the properties. “We are putting in place a system that aims to combine the local authority’s financial sustainability with support for those most in need and for the sectors that contribute to the town’s prosperity,” Romero concluded.