Estepona Council has approved an important 60% reduction in the municipal tax on capital appreciation of real property (Plusvalía) which is payable on the transfer of dwellings and other real property regardless of whether such a transfer generates a profit or a loss.
The Council has further agreed to reduce the I.B.I. (Local Rates) Tax to 8%, which is considered to be even more important as this is a property tax which has to be paid every year. This tax has increased exponentially in many municipalities, not as a result of an increased tax rate but because the taxable base on which it is charged (the ‘cadastral value’) has been revised to an exponential increase while the actual value of property has not ceased to decrease. Let this be an example. Property and self-employed workers have paid the highest price in this crisis.