·         It will be mandatory in all municipalities in the country.
The increase in tax pressure will affect all citizens, experts warn.
Legal disputes and possible refunds are anticipated.
Starting in April 2025, all Spanish municipalities will have to apply a new garbage tax, as established by the law on waste and contaminated soil for a sustainable economy, approved in 2022. This measure seeks to ensure the financing of the collection, waste treatment and recycling service, and marks the first time that the garbage tax will be mandatory throughout the territory.

Until now, each municipality decided whether to charge this tax or not, being optional like other taxes. However, the new law requires that it be applied uniformly. The National Association of Local Public Tax Inspectors (ANIHPL) warns that this change could bring a “significant” increase in the tax burden related to housing, affecting both those who already paid for this service and those who will begin to do so in 2025. In addition, those who already pay will probably see increases, since the rates must cover the entire waste collection service.

According to ANIHPL, the magnitude of the impact will vary depending on the cost of the service in each municipality and the number of inhabitants, although in general an additional tax burden is anticipated. Some municipalities could offer bonuses to mitigate the increase, but it is not widespread, and in most cases, an increase in property taxes is expected.

This new rate is also expected to cause a large number of legal disputes. The law is drafted in a general way, leaving municipalities free to implement it as they see fit. This could lead to various interpretations and conflicts similar to those experienced with the municipal capital gains tax, which was overturned in 2021 by the Constitutional Court. In addition, the law stipulates that the cost will be calculated based on the amount of waste generated, which adds complexity to the application and evaluation of the amounts to be paid.

It should be noted that, although the European regulations on which this law is based do not require a uniform rate, they do establish the need to adopt environmental measures. In the case of Spain, it has been decided to transfer this responsibility to the municipalities. The National Association of Local Public Finance Inspectors will present at its Annual Congress in November a “White Paper” with proposals for reform of this rate, which could be a source of conflict in courts.