2023-10-26 13:32:22
The Madrid City Council has approved the tax ordinances for 2024, which contemplate a tax reduction of 40 million euros, including a reduction of the Real Estate Tax (IBI) from 0.456 to 0.442% and a decrease in the Construction Tax (ICIO) from 4% to 3.75%.
This was announced by the mayor of Madrid, José Luis Martínez Almeida, at a press conference, where he specified that it is a reduction for the people of Madrid of 40.3 million euros.
Flanked by the Treasury delegate, Engracia Hidalgo, and the spokesperson and vice mayor, Inmaculada Sanz, Almeida detailed that with these new tax ordinances the IBI reduction, which reaches 0.442, is reduced again for the third time in all these years. “, compared to cities like Barcelona, which are above 0.6%, or Valencia which, despite the fact that the new mayor has already announced a reduction, was previously at 0.7%.”
“This reduction reaches 0.442%, compared to the traditional discourse of the left that we only benefit the richest: get an idea that Nearly 80% of the affected properties have a cadastral value of less than 150,000 euros and, therefore, affects all levels of society.“, he indicated. The PP’s commitment is to reach 0.4% in the next three years of office.
2.2 million receipts will benefit from this measure, among them families, “middle classes, self-employed people, small and medium-sized businesses, who will save 30.5 million euros.” “The new reduction in the general IBI rate not only benefits the 1.5 million properties for residential use, it also benefits those sectors most affected by the escalation of prices: 95,500 for commercial use, 30,000 offices, more than 11,000 premises for industrial use and 7,500 leisure venues,” the municipal government has detailed.
The mayor has indicated that they comply with another electoral commitment, reduce the IBI to century-old businesses and leisure and hospitality establishments that continue their activity. For this, a 50% IBI bonus will be approved, which will reach approximately 176 properties.
Madrid, with the lowest IBI after Santander and Zaragoza
The consistory will maintain the IBI bonuses aimed at large families, of up to 90% depending on the cadastral value of the home, a measure that benefits more than 23,500 large families. This new reduction in the IBI rate will make Madrid “the third provincial capital of those with the common regime with the lowest general IBI rate in Spainonly behind Santander and Zaragoza”, which have 0.4%.
The City Council has given as an example that, before approving this new reduction, in Madrid a property with a cadastral value of 200,367 euros would have paid a bill of 913.6 euros in 2024, when now it will pay 885 euros. It assumes that, in total, this taxpayer will have saved 519 euros in the last five years.
Linked to homes, the electoral commitment involves “gradually lowering the ICIO rate from 4% to 3% over the four years of the legislature.” and that is why in this draft of tax ordinances it will drop from 4 to 3.75%, which will allow construction to be promoted even more.”
It will generate annual tax savings for Madrid residents of 9.1 million euros in “a measure aimed at reactivating economic activity from which 25,000 taxpayers can benefit.” And it will be added to a 20% bonus in the ICIO for the installation works of electric vehicle charging points in the municipal commitment to electrification. In this way, a home where a charging point is installed at a cost of 1,200 euros would have to pay a fee of 450 euros, but by applying the bonus you will save 90.
In addition, the 70% bonus is extended in the settlement of this tax to benefit urban regeneration actions in order to eradicate substandard housing or shanty towns.
Capital gain
In the area of capital gains The 160 million euros that are still pending as a result of the ruling of the Constitutional Court will be returned throughout this year., a tribute for which the City Council “has gone from collecting 600 to 400 million euros.” “Over the last few years, an extraordinary budgetary effort has been made to return some 360 million euros, but 160 million are still pending,” said Almeida.
In capital gains, the bonus is maintained up to a maximum of 95% based on the cadastral value of the property in mortis causa transfers in favor of ascendants, descendants and spouse, which were already improved in 2020, he has defended. This measure could benefit more than 13,500 Madrid residents with an economic impact of more than 10 million euros.
In the Economic Activities Tax (IAE) Bonuses for starting activity and job creation are recovered“which could not be in force in 2023, as a consequence of the non-approval of the budgets.”
Thus, any company that begins its activity is exempt from paying the IAE fee during the first two tax years and the bonus of 50% of the municipal fee for these entrepreneurs, applicable during the third and fourth tax periods, will be definitively restored. after the start of its activity, and the bonus for job creation, also up to 50% of the municipal quota.
Also The reduction in the fee for the urban waste management service of activities is maintained which was implemented in 2020. This cut will be 90 percent when it affects unoccupied properties in which no economic activity is carried out, while it will be reduced by 70 percent in the event of the start of activity during the first two tax periods.
Renewable energy
To promote the implementation of renewable energies in residential buildings and industrial facilities, the 50% IBI bonus for non-residential properties with the limit of the tax benefit in this tax of 50% of the actual work. A bonus of 50% of the IAE fee is also set for the installation of solar and geothermal energy use systems.
The bonus of between 10 and 50% in the IAE quota also continues for companies that implement transport plans that affect at least 20% of their staff with annual public transport subscriptions or through contracting the transport service. .
The Treasury delegate, for her part, advances a decrease in the collection of the Circulation Tax, popularly known as ‘numerito’, as a consequence of the fact that “every day there are more taxes for which less are paid because they are linked to the environmental and low-emissions issue, which means it is a tax that is decreasing in revenue year after year.
“They are tax ordinances that They represent a reduction for Madrid residents of more than 40 million euros, which in the accumulated amount since 2019 is already more than 800 million euros“, quantified Almeida, who has announced that the budget of the Madrid City Council for 2024 will be 5,940 million euros. It will be presented “in two or three weeks.” Both the tax ordinances and the budget will be approved “before the end of this year.” year”, a certainty that has been conveyed with the absolute majority that the PP has in Cibeles.
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