Estepona repays debt and cuts rates for residents

In a landmark achievement, the Costa del Sol town of Estepona has officially reached ‘zero debt’ after paying off over €300 million, paving the way for what Mayor José María García Urbano has described as “the largest tax reduction in the town’s history.” 

This landmark, as certified by municipal comptroller, will translate to immediate relief for residents. The Property Tax (IBI), which is due in 2025, will be reduced by 20 percent. The IBI has been reduced by 50 percent since 2011. If the town’s finances continue to be strong, the mayor may suggest further tax cuts in the future.

García Urbano revealed that in 2024 alone, Estepona paid over €26 million to fully amortise its financial debt, a feat accomplished through what he called “responsible, efficient, and austere” management. Once among Spain’s most indebted municipalities, with a staggering €4,600 per capita debt, the town has allocated an average of €60,000 daily since 2011 to clear its obligations. These included €33 million in unrecorded invoices, €6 million owed to the Andalusian Regional Government for misused grants, €60 million to Social Security, €18 million to the Tax Agency, and over €90 million through the Supplier Payment Plan.

Estepona’s property tax is now lower, allowing it to be debt free.

“This closes one of the darkest chapters in Estepona’s history,” García Urbano declared, emphasising that the town has not only cleared its inherited debt but also avoided new borrowing. The town has been able to fund all recent infrastructure and municipal projects without taking on debt. This is a testament of the financial turnaround. The 2024 budget liquidation reported a record-breaking surplus of €45 million and budgetary stability of €24 million, with an average supplier payment period of just 12 days, placing Estepona among Spain’s fastest-paying administrations.
The mayor highlighted the transformational projects which have modernised Estepona. These include the Coastal Corridor (a 95% finished pedestrian boardwalk that stretches the entire coastline of Estepona).

The Orchid Park and Carmen Cultural Centre, with its eight-storey Contemporary Cultures Library as well as a new Athletics Stadium are also part of the development.

The former N-340 highway has been reimagined as one of Spain’s largest seafront boulevards, while the Calle Terraza renovation and a municipal parking plan offering 2,000 spaces at €1 per day or €3 for 24 hours have greatly improved accessibility and liveability.

García Urbano has attributed these achievements to “prudent resource management”, contrasting the current administration’s approach with the “financial mismanagement of previous governments.” “We are moving forward with strength and vision towards an excellent town,” said Garcia Urbano, expressing his optimism for Estepona as a future model of fiscal responsibility. Estepona’s combination of debt reduction, tax cuts and ambitious projects makes it a model of fiscal responsibility and progress along the Costa del Sol. It offers tangible benefits to residents and sets a standard in municipal governance.