Marbella Reduces Taxes for Five Hotels Operating Year-Round

The Marbella municipal corporation has unanimously approved a 50% tax relief on the Economic Activities Tax (IAE) - paid by companies that net more than one million euros per year - for five hotels that remain operational throughout the year. The council aims with this tax relief to recognize the commitment these establishments, of various categories, make to Marbella, a municipality whose economic development is closely linked to tourism, despite the council's attempts to diversify the economy. "We appreciate their maintaining employment and Marbella's offerings throughout the year," stated the municipal spokesperson and Finance delegate, Félix Romero. The PSOE has requested that the council increase the relief to 95 percent, as stipulated in the council's fiscal ordinances. "An effort can be made to encourage hotels to stay open and provide services to tourism during vacation periods that are increasingly extending. It would benefit Marbella's primary industry," noted PSOE councilor Javier Porcuna. Marbella has over 60 hotels within its municipal boundaries, many of which are five-star and luxury establishments. The approval of the tax cut comes at a time when the Association of Hotel Entrepreneurs of the Costa del Sol (Aehcos) has labeled the increase of various municipal taxes approved for 2025 by the indebted council, which is under adjustment plans, as "excessive and discriminatory." According to the hotelier group, the increase in the Property Tax (IBI) approved by the council is 54 percent and that of the IAE, 26 percent. The increase in local taxes adds to a ten percent rise in the hydraulic infrastructure fee. Aehcos warns of the loss of competitiveness and potential hotel closures that the sector might face due to the tax increase and calls for exploring other avenues for tourist municipalities to obtain funds, such as state or community grants. The government team has opened the door to study measures that compensate for the increase in local taxes, although not until 2026. "The commitment we have is to study measures that, in some way, alleviate the tax burden," Romero stated.