Seville reduces IBI by 1% in 2027 and extends VPO discount to 13 years

The draft strengthens social protection in housing and family transfers. The 50% discount on IBI for officially protected housing (VPO) is extended from 9 to 13 years, well above the minimum of 3 years required by state legislation.

In the Tax on the Increase in Value of Urban Land (plusvalía), the discounts for inheriting the habitual residence increase by 10 percentage points linearly, placing the main bracket at 60% (previously 50%). For inheriting business premises and maintaining family activity, the discount rises from 40% to 50%, and reaches 95% if the property is transferred to charitable or socially beneficial entities.

The text also includes incentives for permanent employment and support for self-employed individuals. The discount for starting activity in the Tax on Economic Activities (IAE) is quintupled in the 6th and 7th years of business consolidation, increasing from 10% to 50%.

For newly established companies that create permanent jobs, discounts on IBI and the Tax on Constructions, Installations and Works (ICIO) of up to 95% are established, scaled from 20% for hiring 5 to 19 workers to 95% for more than 200 employees. Companies already based in Seville that expand their permanent workforce will receive proportional discounts of up to 95% on IBI and ICIO, with an additional discount of up to 50% on IAE.

In terms of ecological transition, the draft includes aerothermal energy for the first time among the discounts for clean energies, with a 50% discount on IBI and a 75% discount on ICIO. A 50% reduction in non-residential IBI, ICIO, and IAE is also approved for properties and premises that install charging points for electric vehicles.

The rates of the Municipal Sports Institute (IMD) include social tariffs linked to the Andalusian Plan for Physical Exercise Prescription, with prices of €5 per single session and monthly passes of €30 that include an initial technical assessment of €10.

Additionally, the spaces of the Hogar Virgen de los Reyes complex are reorganised to optimise public management, without increasing general rates, which remain frozen at €8.13 per square metre.

"In our first year, in 2024, we applied a generalised 1% reduction in all taxes; in the following years, we deepened the freeze and discounts, and for 2027 we are again reducing IBI so that more than €1.7 million stays in the homes of Seville families and businesses, without compromising municipal public services," declared Juan Bueno before the CESS.

The Finance delegate emphasised that this project demonstrates that public services can be managed efficiently without suffocating citizens. "Seville is now a more attractive city for investment, fairer for families, and with a tax environment conducive to job creation," he added.

Bueno also pointed out that the 2027 ordinances consolidate "a city model that has significantly and progressively reduced the tax burden on families and self-employed individuals." He recalled that Mayor Sanz stated at the beginning of the mandate that it would be possible: "a city council does not need to financially suffocate its residents to advance and modernise the city."

The draft has been presented to the CESS for analysis and debate. From now on, a period for objections opens before its initial approval in the municipal Plenary, likely in the coming months, so that the ordinances come into effect on 1 January 2027.