The Sale of Hotel Sol in Puerto de Naos Generates €600k for La Palma’s Municipal Coffers

27 October 2018 – El Día

The sale of Hotel Sol located in the tourist town of Puerto de Naos, in Los Llanos de Aridane (La Palma, Canary Islands) generated almost €600,000 (specifically, €597,215) for the municipal coffers by way of profit, according to reports presented in the most recent plenary session.

The sale was undertaken as part of a larger operation. Specifically, the hotel chain Meliá Hotels International sold three hotels in Sevilla, La Palma and Fuerteventura for €73.4 million to the real estate company Atom Hoteles Socimi, although it continues to operate them under a rental arrangement.

The one-off income obtained by the Town Hall was one of the arguments presented by the spokesman for Izquierda Unida, Felipe Ramon, to oppose the elimination of the tax, which each year generates around €100,000 for the municipal coffers. The case of Hotel Sol was exceptional, although it is also true that “if this tax had not been in force, the Town Hall would not have collected a single euro for the operation”, as the leader of IUC indicated.

The left-wing party rejects not only the suppression of the tax on property gains but also considers the decrease in the rate of IBI, approved in the plenary session, to be premature.

IUC considers that lowering the IBI “without first conducting a study and together with the other fiscal ordinances” proposing its modification “now when it was not scheduled for 2018”, represents “the start of the election campaign for the PP” (…).

Original story: El Día

Translation: Carmel Drake

Botella Announces A 20% Reduction In IBI From 2016 Onwards

6 February 2015 – Expansión

Yesterday, the Mayor of Madrid, Ana Botella, who revealed last September that she would not stand for possible re-election in the upcoming municipal elections, announced further reductions in the municipal taxes, which will come into force from 1 January 2016 and will have an impact of €250 million.

The majority of the new tax relief from the capital’s Town Hall, the third announcement in two years, relates to Property Tax (IBI), which will result in an average reduction of 20% for citizens. The tax will thereby return to its levels in 2011, according to figures released yesterday by the Town Hall. This amounts to an average saving of around €78. The reduction will represent a decrease in the Town Hall’s coffers of €183 million.

This new reduction has been made possible thanks to a new surplus in municipal funds, which amounted to €1,389 million in 2014, an increase of €423 million on the previous year, according to the preliminary year end figures released yesterday.

As well as enabling new debt repayments and the allocation of more funds for investment, the new surplus will provide support to the accounts of all of the Public Administrations. The Town Hall will alone contribute more than one tenth of GDP to offset deviations from the rest of the State’s deficit, to boost the achievement of its objective.

The municipality’s remaining cash amounted to €386 million at the end of 2014, slightly below the figure in 2013 (€406 million), of which €334 million related to a loan from the Supplier Payment Fund, says the council.

In addition to the decrease in IBI, the Town Hall announced other reductions. It will apply a 7% reduction in the municipal capital gains tax, which will mean lost revenues of €52 million for the city’s coffers from 2016 onwards.

Botella also announced changes to the Tax on Construction, Facilities and Building Work (ICIO) with a discount of up to 95% for building works whose cost does not exceed €150,000, from the second quarter of 2015 onwards. Building works costing up to €300,000 will receive a 50% discount, whilst those amounting to less than €500,000 will receive a 25% discount. A 100% exemption will also apply to the planning permission fees linked to such building works. This measure will have an impact of €13 million.

The City of Madrid recorded total debt of €5,936 million at the end of 2014, compared with €7,000 million a year earlier.

Original story: Expansión (by B. García)

Translation: Carmel Drake