Marbella still owes state tax and social security bodies over 130 million euros from GIL era

Nearly two decades after the dissolution of the local council in 2006 and subsequent elections in 2007, municipal liabilities remain substantial, even as local revenues reach historic highs.

Following the municipal council's dissolution in 2007, Marbella faced an accumulated debt approaching 700 million euros against a budget of just 185 million euros. Today, total town hall liabilities stand at 266 million euros, supported by an expanded municipal budget of 448 million euros - a 115 million euro increase over the past three years.

Of the town's current liabilities, 133 million euros is owed directly to Spain's central government bodies. Outstanding Social Security debt has been reduced from an initial 189 million euros to 109 million euros, while tax authority debts (Hacienda) have fallen from 88 million euros to 24 million euros.

Speaking at the annual State of the Town debate, Mayor Ángeles Muñoz highlighted the administrative challenges faced between 2007 and 2011 under the PSOE central government, which declined requests for debt write-offs or extraordinary deferrals.

"They told me to raise taxes, that they had no intention of deferring or writing off the debt, and that if residents incurred debt by voting for GIL, that was their problem," Muñoz stated during the session.

Relief arrived in late 2011 when the incoming central government under Mariano Rajoy incorporated a 40-year deferral agreement into the General State Budget Act, allowing Marbella to restructure its payments while maintaining public services.

In addition to central government obligations, Marbella holds a 50 million euro debt with the Andalusian regional government (Junta de Andalucía), reduced from an original 106 million euros.

The council also manages approximately 80 million euros linked to court rulings and final judgments stemming from urban planning agreements signed during the GIL administration.

During the debate, Muñoz detailed historical debt settlements with financial institutions and public bodies, including renegotiating loans with BBVA (reducing liabilities from 126 million to 60 million euros) and settling a 10 million euro debt with Unicaja.

Outstanding liabilities to suppliers (over 20 million euros) and the Provincial Tax Collection Board (23 million euros) have been fully cleared.

The mayor noted that previous debt recovery actions extended to unusual municipal assets: "We even had to negotiate with the Professional Football League because the municipal cemetery had been seized," Muñoz recalled.