Credits: Pexels, Olia Danilevich. Marvela City Council will raise business taxes again in 2024.
Mayor Anceles Muñoz plans to increase taxes on businesses in Marbella. This new tax hike will primarily target Marbella’s leisure and hospitality businesses.
IAE increases
A new increase in “Impuesto Sobre Actividades Economics” is expected to help raise an additional 600,000 euros Marvela City Council.
Tax reductions are based on a “weighting factor” determined by the location of the business. What does this mean for businesses in the region? The change means businesses in major locations will spit out more money to the Marbella Council.
While businesses in the city centre will face the biggest blow, people hiding in the quiet parts of the city will feel less, but still stand out.
In 2024 there was a previous IBI increase, raising an additional 5 million euros to address budget issues. However, that doesn’t seem to have been enough as the council plans to implement an additional IBI increase in 2025.
Government justification for tax increases:
Of course, the government said tax increases would be necessary to renew the tariffs and cover administrative costs. The new IBI and IAE increase is expected to generate another 2.7 million euros or more in the municipality.
But is this really the best time to seek more as businesses are still recovering from the pandemic and are recovering from the already high cost of living in Marbella?
