If approved, IBI in Madrid would drop to 0.4% in 2027, with an estimated saving of €31.2 million. The waste fee would remain at an average of €143.
According to madridinforma.es, the Madrid City Council has approved the initial project for the tax ordinances for 2027, proposing to reduce the general rate of IBI from 0.414% to 0.4%, the minimum allowed by law. The measure would affect around 2.27 million receipts, while the waste fee would maintain a projected average of €143 per year.
The reduction would mean a saving of €14 for every €100,000 of cadastral value, taking the 2026 rate as a reference. The City Council estimates that taxpayers would collectively pay €31.2 million less next year. The measure would apply to 1.53 million residential properties, as well as offices, commercial premises, and hospitality establishments.
For a property with a cadastral value of €135,134, the 2027 bill would be around €540, compared to €689 at the 2019 rate. Compared to 2026, the saving for that same property would be around €19. These figures do not apply bonuses.
The waste fee will not disappear with the reduction of IBI. The new ordinance anticipates an average receipt of €143, almost the same as in 2026, although the individual amount will depend on the cadastral value, waste generation, and other calculation factors. The main novelty is the evaluation of five fractions: non-recyclable waste, packaging, organic matter, paper and cardboard, and glass. The fee will have a basic part and another linked to waste generation, which will take into account the registered residents, the amount of waste, and the quality of separation in the 131 neighbourhoods of the capital.
The project maintains IBI bonuses of up to 90% for large families, depending on their category and the cadastral value of the home. The City Council estimates that around 37,000 families will benefit, with a total saving of €16 million in 2027. For the waste fee, recipients of the Minimum Vital Income and the Minimum Insertion Income will receive a 100% reduction. Empty homes and inactive premises will only pay the basic fee if they annually prove that situation. Garages and storage rooms associated with homes, vacant lots, and derelict buildings are exempt from the fee.
The City Council expects that around 1.7 million properties will be subject to the waste fee in 2027. The owner will pay it to the municipal administration, although they may pass the cost on to the tenant when applicable. The regulation includes access to the Pay as You Go system, which provides a 5% reduction in the fee, with a maximum saving of €15.
The amounts are provisional, as the text must complete its processing before being applied in 2027. The details are included in the official note published by the Madrid City Council.
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