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Mayor JosƩ Marƭa Garcƭa Urbano

Estepona has zero debt and will lower property tax by 20%

  • June 13, 2025
  • rgbinvestment

Estepona's municipal government has reached a significant milestone by clearing its entire debt, as Mayor JosƩ Marƭa Garcƭa Urbano's administration settled the final 26 million euros of the 304-million-euro liability inherited in 2011. The mayor indicated this achievement will usher in a new era this August-September, including an anticipated 20% average reduction in IBI (property tax - comparable to Britain's council tax).

GarcĆ­a Urbano delivered this announcement on Thursday morning, surrounded by municipal officials and key representatives from Estepona's business and community sectors.

Mayor JosƩ Marƭa Garcƭa Urbano

When GarcĆ­a Urbano (representing the conservative PP party) took office as mayor in 2011, he faced an inherited debt of 304 million euros from previous administrations. Under the leadership of the two preceding PSOE mayors - Antonio Barrientos and David Valadez - the municipality had accumulated substantial obligations to public bodies, organizations, businesses, vendors and financial institutions, ranking it among Spain's most indebted towns, averaging 4,600 euros per resident.

Upon assuming leadership, GarcĆ­a Urbano implemented a debt reduction strategy requiring daily payments of 60,000 euros. Since 2011, Estepona has cleared:

  • 90 million to vendors;
  • 60 million to the general treasury and social security;
  • 33 million for outstanding invoices;
  • 18 million to the tax authority;
  • eight million to the water service provider;
  • six million to the regional administration for inappropriate or unsubstantiated use of grants given to previous PSOE governments; plus additional debts.

The financial strategy implemented by JosƩ Marƭa Garcƭa Urbano has enabled the clearing of municipal accounts while driving Estepona's transformation and urban development.

The restructuring of municipal finances will enable resources previously allocated to debt repayment to be redirected toward public investments, municipal services, and support for families and local businesses.

Within this framework, GarcĆ­a Urbano proposes a tax reduction featuring a 20% average decrease in IBI. This adjustment will bring the total reduction in this tax since 2011 to 50%.

While endorsing the ordinance for this tax reduction, GarcĆ­a Urbano received public endorsement. The town hall showcased a video highlighting planned developments for Estepona to reinforce the decision.

Check here if you want to look at different properties in Estepona