Málaga Increases Inheritance Tax Reductions and Accelerates New Waste Tax Collection
In 2026, Málaga is set to increase inheritance tax reductions significantly. The new regulation will provide a 37.5% reduction for individuals who did not reside with the deceased, applicable to properties with a cadastral value not exceeding €150,000.
Málaga’s Inheritance Tax Changes
For residents, inheritance tax reductions will reach up to 95% based on specific circumstances and property value. This represents a 12.5% increase in tax benefits compared to the previous year, which had already introduced bonuses for non-residents.
Fiscal Pressure and Taxation Overview
Málaga’s administration aims to maintain low fiscal pressure amidst rising costs. The city has frozen several key taxes including:
- IBI (Property Tax)
- IAE (Economic Activities Tax)
- ICIO (Construction Tax)
- IVTM (Vehicle Tax)
This freeze contributes to Málaga having one of the lowest per capita tax burdens in Spain, with the average IBI payment at €226 per resident annually. In comparison, Madrid residents pay €428, and Barcelona residents pay €439.
Impact on Municipal Revenue and Benefits
City officials estimate that the changes will benefit approximately 5,000 residents. They expressed concerns over past losses amounting to €100 million due to new state regulations affecting property tax collections.
Additionally, while public service fees for urban transport, water, parking, and cemeteries remain unchanged, there are increases in specific areas. For instance:
- Parking rates will rise, with new hourly rates adjusting to €1.
- Cancellation fees for parking violations will increase from €3.80 to €5.00.
Water and Waste Management Fees
Water bills are projected to increase by 42% over five years, with the third tier adjustment arriving in 2026. The administration plans to initiate discussions about a new waste tax, while sampling measures to minimize legal disputes surrounding the new regulations.
Support for Vulnerable Populations
Málaga is focused on providing assistance through social programs. Economic support is aimed at over 2,600 individuals who benefit from local supermarkets and essential product subsidies. This program, which costs €2.4 million in 2026, sees the city covering 75% of necessary costs for basic hygiene and food items.
Funding arrangements permit organizations to allocate up to 15% for necessary infrastructure improvements, facilitating better services for those in need.
Conclusion
The upcoming fiscal changes in Málaga demonstrate a commitment to reducing financial burdens on residents while supporting vulnerable populations. These initiatives aim to balance municipal funding needs with social responsibility.
