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In the national panorama of the 20 cities in Spain most affected by this drop in income, Boadilla del Monte (Madrid) is in first place, and Torrevieja in second place
02.08.2022
After the letter sent to the City Council of Torrevieja by the president of the Spanish Federation of Municipalities and Provinces (FEMP), Abel Caballero, in which an agreement was reached in the National Commission of Local Administration (CNAL) for the creation of a group of work to analyze how to compensate for the drop in income from the capital gains tax, the mayor, Eduardo Dolón, has formally requested their participation, since the municipality of Torrevieja has been one of the most affected by these jurisprudential and legislative fluctuations.
Eduardo Dolón has indicated that, as the FEMP will surely know, the Tax on the Increase of Urban Land (IIVTNU), is the second source of financing for City Councils, within Chapter 1 of direct taxes, behind the Tax of Real Estate (IBI). This condition does not affect all the municipalities of Spain equally, since only 3,539 entities -of a total of 8,131 local entities at the national level- reported the income as municipal capital gains, resulting in a collection of more than 2,600 million euros .
The mayor has highlighted that of those municipalities that have approved the exaction of this tax, Torrevieja constitutes a paradigm, since if this means of financing supposes an average of 6.3% of the tax income of the municipalities, in this City Council it supposes almost 25% of the tax revenues of the municipality.
In a comparative analysis of the income received in this concept with respect to the total current income in order to assess the economic weight of the municipal capital gain, in the national panorama of the 20 most affected cities in Spain, Boadilla del Monte, which with 54,570 inhabitants, has the highest percentage, which is 40.70% and an allocation of 38,132,010 euros, of the 93,700,097 euros of its Current Income
Behind that Municipality and in the national ranking, the municipality of Torrevieja is in second place, which with 88,788 inhabitants presents a percentage of 25.45% and an affectation of 38,132,010 euros, of the 107,322,996 euros of its Income. currents.
Regarding the municipalities that perceive the highest amount of municipal capital gain, Madrid heads the list with 508,541,311 euros and Torrevieja is in seventh place. Valencia City Council is in ninth position in this ranking, with a population of 800,180 inhabitants in 2021 (compared to 88,788 inhabitants of Torrevieja).
Therefore, and based on the weight that this municipality represents with respect to this transcendental issue for the support of ordinary municipal income, the FEMP presidency is requested that this City Council be represented by the mayor of Torrevieja within of that work commission to alleviate the negative consequences of the legislator's inaction, motivated in part by political blockades, but also by the weight of the tax in municipal collection, which prevented serious consideration of the comprehensive tax reform.