Colau Approves 6% Rise In IBI For Homes Worth >€300k

18 November 2015 – El Economista

The fiscal policy of the mayoress Ada Colau has been up in the air since her victory at the municipal elections in May. But yesterday, Bcomú’s representatives approved new tax regulations, with votes form the PSC and the CUP, and despite opposition from CiU, the PP and Ciutadens, which initially resulted in a tied vote. Nevertheless, the mayoress’s casting vote allowed the regulations to go ahead.

The main impact of these new tax measures is a 4% increase in the rate of Property Tax (‘Impuesto de Bienes Inmuebles’ or IBI) for homes with a cadastral value of more than €100,000 and a 6% increase for homes worth more than €300,000. The Town Hall explained that 79% of the buildings in Barcelona are worth less than €100,000 (and will be unaffected by the measure).

Although the first fiscal policy adopted by Bcomú was to revoke the 10% increase in IBI that the previous municipal government, led by Xavier Trias, had proposed; shortly afterwards, Colau’s team proposed a property tax freeze. But following criticism from all of the opposition groups, Bcomú decided to negotiate with the other parties, ahead of the new cadastral review, which will apply from 2017. The Town Hall expects to raise €633 million through IBI.

Original story: El Economista (by Iván Gutiérrez)

Translation: Carmel Drake

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