LOCAL TAXES: METROPOLITAN TAX, GARBAGE TAX...
What are the main local taxes?
These are taxes established by municipalities or local entities for the special use of local public domain or its private use, or for the provision of public services or local administrative activities. Some of the most significant local taxes include:
- Garbage Tax, which applies to the provision of urban waste management services in various buildings, facilities, or properties where activities are carried out, whether commercial, industrial, professional, artistic, administrative, or other public or private services.
- Metropolitan Tax, established for the Barcelona Metropolitan Area, is a tax designed to finance services in this area. It is set as a surcharge on the Property Tax (IBI) based on the rules of the corresponding fiscal ordinance. This tax finances actions aimed at achieving a more orderly metropolitan area, including public space and infrastructure for connectivity, mobility, and territorial functionality.
How are Local Taxes calculated?
The Garbage Tax calculation is regulated by each municipality under the criteria of the applicable fiscal ordinance. In some municipalities, the rate is fixed, while in most, it is variable based on several criteria such as the property’s cadastral value, surface area, use, and productive sectors.
The Metropolitan Tax’s taxable base is the cadastral value of the property, determined by the Directorate-General of the Catastro according to the data in the Property Register. The tax is applied to all taxpayers subject to the IBI, and the rate is set by the fiscal ordinance, with possible reductions and discounts.
How can we help reduce it?
- Reviewing the taxable bases for each local tax.
- Analyzing the municipal fiscal ordinances that regulate the taxes to detect potential application errors.
- Studying applicable discounts and exemptions under the regulating legislation for each specific case.