Calp Town Council will submit to the ordinary council meeting on Tuesday 13 October a series of tax changes scheduled to come into force in 2027. The proposal reduces the waste rate and vehicle tax for residential properties, increases the tax burden on holiday lettings and businesses, and will automatically apply a 95% exemption on municipal capital gains tax in inheritance cases.
The waste rate will fall between 18% and 20% for residential properties, depending on the zone, across the nine zones established in the regulations. The Town Council estimates an annual saving of between €29 and €30 in the zones with the lowest reduction and around €47 in those with the highest reduction. The Mayor, Ana Sala, gave zone 3 as an example, where the bill rose from €82 before 2025 to €223.06 in 2025, and is forecast to fall to €182.74 in 2027, a saving of €40.32 compared with 2025. The municipal government team explained that there was a shortfall of around €3 million between the cost of the waste service and the amount collected before the 2025 increase.
By contrast, holiday lettings will pay €40 additional per bed space per year, which amounts to a surcharge of €80 for a property with two bed spaces. Shops and economic activities will see a 5% increase in the waste rate.
Cut in vehicle tax
The municipal rate for motor vehicle tax (IVTM) will fall from 1.8 to 1.35, a reduction of 25%. Ana Sala recalled that the last revision of this tax dates from 2003. The reduction will benefit 20,310 of the 22,004 vehicles on the municipal register. The Town Council calculates that this measure will result in a decrease of around €300,000 annually in municipal revenue.
The package of measures also includes the 95% exemption on municipal capital gains tax in inheritance cases, which already exists, ceasing to require an application and being applied automatically instead. The municipal government defends the viability of these cuts by maintaining zero debt since 2022. Water bills are also expected to be reduced following the end of a transitional tariff.