Marbella has approved tax incentives for rent-capped housing developments, including construction tax discounts of up to 95% and a 50% reduction in annual property tax.
The council says the measures aim to boost rental supply and access to housing, particularly for younger residents.
Property developers offering homes at limited rents will qualify for discounts of between 75% and 95% on ICIO, the municipal tax on construction, installations and building work.
The incentive can apply whether or not the homes are officially classified as protected housing, provided developers commit to capped rents and obtain approval from the council’s full assembly.
Municipal spokesman Felix Romero said ICIO currently amounts to 4% of a project’s assessed construction budget, making the reduction a potentially significant incentive.
The council will also extend its existing 50% IBI property tax discount for officially protected homes to properties offered under rent-capped arrangements.
Romero said the discount would have no fixed time limit, encouraging properties to remain in that rental category for longer.
The announcement did not specify the rent ceilings or how they would be calculated.
For property owners generally, Marbella’s standard IBI rate will remain frozen next year at 0.65% of cadastral value.
The council also announced a reduction in the higher IBI rate applied to qualifying leisure and hospitality properties, from 1% to 0.82%.
Romero said this would leave approximately €1.1million in taxpayers’ hands rather than council coffers.
The change affects the highest-taxed properties within the relevant categories, subject to statutory limits.
He described hospitality and leisure as essential to Marbella’s economy, tourism appeal and employment.
The tax changes were approved at Friday’s council meeting without debate because of the official mourning period following the Toledo rail disaster.
They will help establish the revenue forecasts for Marbella’s 2027 budget, which the council intends to submit for initial approval in November.
The administration aims to have the budget in force by January 1, 2027.
Read more Andalucia news at the Spanish Eye.
