Huge boost to British expats living in 1 part of Spain as 20% tax cut announced

Estepona has paid off all its debts and is now slashing property tax. (Image: Getty)

The Costa del Sol town of Estepona has successfully cleared all its debts and is now slashing property tax in a huge boost to local residents, which includes approximately 5,000 British expats living there. The administration led by Mayor José María García Urbano has remarkably transformed the town's finances after taking over substantial debt from their predecessors. Now, they has unveiled a tax-cutting initiative, starting with an immediate reduction in property tax (IBI) for 2025.

This policy will deliver savings of roughly €6.1 (£5.2) million across approximately 38,000 households. With an average reduction of 20% household, the IBI cuts will appear on bills distributed between August and September, though individual savings will vary. Council figures show that 37,988 tax bills will receive this direct financial relief.

The measure will help approximately 38,000 households. (Image: Getty)

Since 2011, Estepona has slashed the IBI by 50%, making it among the most affordably-taxed areas in Malaga province.

The council also implemented a 3% discount on waste collection charges for residents who recycle at least three times at the municipal "Punto Limpio" facility. 

Households can make use of the scheme by disposing of items such as appliances, furniture, oils, light bulbs, X-rays, or clothing.

To qualify, residents must lodge an application with the Provincial Revenue Agency during the first quarter of 2026, accompanied by payment proof and recycling documentation.

The council will also continue its tax assistance for vulnerable populations, including pensioners, the long-term jobless, and those facing social exclusion.

"This closes one of the darkest chapters in Estepona’s history", Urbano said. "With strength and vision, we are advancing toward an excellent town."