The Estepona Town Hall has implemented the most significant reduction in the municipal property tax (IBI) in the town’s history, benefitting nearly 38,000 residents. The most recent tax bills, issued in August, reflect an average 20% reduction, representing a total saving of 6.1 million € for local households.
This fiscal shift comes after the Town Hall successfully cleared the 304 million € debt inherited from previous administrations. With the city’s finances now under control, resources have been redirected to deliver long-promised tax relief. As Mayor José María García Urbano stated, this is “a reward for years of financial discipline.”
A Decade of Cuts, A Legacy of Relief
This new reduction adds to a cumulative 50% decrease in property tax rates since 2011. Over the past decade, the local government has pursued a consistent policy of easing the tax burden on residents—one that contrasts starkly with the path taken by previous administrations.
Notably, the 2008 revision of property values under the PSOE and IU parties led to the largest property tax increases in Estepona’s history, sparking public demonstrations from residents frustrated with the surging costs.
In total, 37,988 property tax bills have benefited from the latest adjustment, according to the Municipal Audit Office. The Mayor has also indicated that further reductions may be introduced in the near future.
More Than Just IBI: Broader Relief Measures Introduced
The Town Hall has also enacted a 3% discount on the waste collection tax for residents who make at least three deliveries to Clean Points. This incentive applies to items not typically collected through the standard municipal system, such as electronic equipment, used oils, light bulbs, X-rays, and textiles.
In order to benefit from this discount, residents must apply during the first quarter of 2026, submitting proof of their deliveries along with their 2025 waste collection tax receipt.
Furthermore, existing tax relief schemes for retirees, the long-term unemployed, and vulnerable households remain in place, reinforcing the Council’s broader strategy of financial fairness.
A Debt-Free Town Hall and the Cost of Past Mismanagement
The capacity to implement such wide-ranging tax reductions stems from Estepona’s successful journey from financial crisis to solvency. Once counted among Spain’s most indebted municipalities with a debt level of 4,600 € per inhabitant—Estepona was on the brink of bankruptcy in 2011.
Mayor García Urbano recounted the severity of the situation: public employees had to bring toilet paper from home, and municipal vehicles were left idle when local petrol stations refused service due to unpaid bills.
Through strict financial oversight and responsible budgeting, the Town Hall has:
- Eliminated 33 million € in unrecorded debts.
- Repaid 60 million € to the Social Security system and 18 million € to the Tax Office.
- Fulfilled over 90 million € in payments under the Supplier Payment Plan.
- Dissolved municipal companies that had previously operated as vehicles for unregulated spending.
All of this has been achieved under the scrutiny of the Municipal Audit, Treasury, and Secretariat Offices, ensuring transparency and legal compliance at every step.
When Stability Becomes Tangible
Estepona’s financial recovery is no longer just something mentioned in council press releases, it is starting to show up where it matters. For many long-time residents, a 20% drop in property tax is not just a statistic; it is a welcome change that puts money back in their pockets.
It may not change the world, but it does change the bill. And in a time where promises often outweigh results, that alone feels like progress. In Estepona, fiscal responsibility is no longer an abstract goal, it is something you can actually measure at the bottom of your IBI receipt.
