The municipal government of El Escorial has announced a reduction in the Property Tax (IBI), setting the tax rate at 0.50%. This figure represents the lowest rate the municipality has ever had, a decrease of three hundredths from the current 0.53%. The measure aims to alleviate the tax burden on residents, small and medium-sized enterprises (SMEs), and self-employed individuals with businesses in the town.
With this decision, the local executive fulfills one of its main commitments: to reduce the tax burden on citizens and the economic fabric of El Escorial, thereby benefiting family finances and business activity. The new 0.50% tax rate is below the national average of 0.62%, according to City Council data. This reduction will benefit over 12,000 properties, based on the tax registry.
The IBI reduction will directly translate into savings for taxpayers. In real terms, the IBI bill will decrease by 5.67%, not including any additional bonuses each taxpayer may be entitled to. For example, a property owner currently paying 500 euros in IBI will save approximately 28.35 euros, while someone paying 1,200 euros will see their bill reduced by about 68 euros. This measure will provide residents with more resources for their household budgets and improve fiscal conditions for those conducting economic activities in El Escorial.
This tax cut is the result of efficient management by the municipal government over the past three years, following an analysis of the local administration's economic possibilities and financial capacity. According to Vanesa Herranz, spokesperson and head of Finance, "responsible management of public resources must allow us to balance the maintenance of municipal services with a lower tax burden for taxpayers."
The IBI reduction is in addition to other measures adopted by the municipal government during this term to reduce or contain the tax and economic burden on citizens and local activities. These include a 10% reduction in the Motor Vehicle Tax (IVTM) in 2025, a 13% decrease in the terrace usage fee, IBI bonuses for large families (ranging from 40% to 90%), the elimination of fees for fair organizers, and the freezing of public prices for Culture and Sports services.
The initiative will be presented at the municipal plenary session next Monday, October 19, reaffirming the Governing Team's commitment to efficient management of municipal resources and tangible benefits for residents. The new 0.50% rate marks a milestone in local taxation and consolidates the municipal executive's course of action: lower tax pressure, responsible management, and greater support for families and the economic sector of El Escorial.
