Costa del Sol town to slash property taxes by around 20% in next bill – affecting 38,000 homeowners

TENS of thousands of households in Estepona are set to benefit from property tax cuts that will save residents around €6 million this year.

The Costa del Sol municipality has announced an average 20% reduction in property tax bills, which will be reflected in their IBI (Impuesto sobre Bienes Inmuebles) statements issued between August and September.

Mayor Jose García Urbano said the council can now afford the substantial tax relief after finally clearing all its debts. 

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The cuts represent the largest tax reduction in the city’s history, according to municipal officials.

The move brings the total reduction in Estepona’s property tax to 50% since 2011, thanks to a series of tax-cutting initiatives implemented over the years. 

Urbano has pledged to explore further tax reductions in future.

Municipal Audit Office data shows the subsidy will be applied to 37,988 receipts for registered residents, totalling €6.1 million in savings. 

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However, the exact amount each household saves will depend on their individual circumstances.

The council has also introduced a 3% reduction in refuse collection charges for residents who use at least three municipal recycling points. 

The discount applies to items without special street containers, including electrical equipment, furniture, oils, light bulbs, X-rays and clothing.

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To claim the refuse tax reduction, residents must apply to the Provincial Collection Board during the first quarter of 2026, submitting an application form, the previous year’s refuse fee receipt, and supporting documents for each recycling centre visit.

Estepona already offers garbage collection fee breaks to vulnerable residents, the long-term unemployed and pensioners.

The property tax cuts will take effect immediately on bills issued from August, providing relief to homeowners in one of the Costa del Sol’s most popular destinations.

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