Proposed Tax Freeze and Housing Incentives for 2027

The governing Socialist Party (PSC) at Lleida City Council has presented its draft fiscal ordinances for 2027, proposing a full freeze on all municipal taxes and fees. Mayor Fèlix Larrosa stated the council will absorb inflationary pressures internally to avoid passing costs to households and businesses. This measure is justified by the administration’s claimed financial stability, supported by increased funding from the Spanish state and strong local economic activity. According to Larrosa, this allows the city to maintain essential public services, urban maintenance, and safety without raising direct tax burdens.

We are not passing on inflation to families and businesses.

Expanded Incentives for Affordable Housing

Housing is set to be a central priority in the 2027 budget. The proposal includes expanded tax breaks through the IBI municipal property tax to boost the supply of social and affordable rental housing. Bonuses would be extended from five to six years for homes under official protection (HPO). The IBI reduction for properties used as temporary worker accommodation would rise from 70% to 95%. For construction, installation, and works tax (ICIO), the council proposes increasing the renovation bonus in the historic centre from 75% to 95%. A new 75% ICIO reduction citywide would apply to home improvements if owners agree to rent them through the municipal rental scheme. The IBI bonus for building protected rental housing would rise from 90% to 95% for a minimum of five years. The same increase would apply to homes adapted for vulnerable people, reaching the maximum allowed under current law. An IBI bonus for properties in social rental mediation programmes would also rise, from 80% to 95%.

Refund Planned for Waste Collection Fees

The council plans to return overpayments on the waste collection tax due to delays in launching the new service contract. Originally scheduled for May, the new contract began in August, creating an estimated surplus of between €580,000 and €600,000. Deputy Mayor Carme Valls confirmed this amount will be returned directly to residents and business owners through specific discounts on the 2027 waste fee bill. Households in properties under 110m² will receive €4.98 back, while those above 350m² will receive €8.21. Economic activities will receive proportional compensation, including €4.16 for professional use in homes, €16 for industrial parks, and up to €34 for certain commercial categories.

Debate Scheduled Amid Political Tensions

The draft ordinances will be debated at an extraordinary council plenary session on Tuesday 20 October 2026. The PSC currently lacks confirmed support from any other group. Republican Left of Catalonia (ERC) has called for a 'change of direction', criticising past agreements between PSC and Junts. ERC spokesperson Jordina Freixanet questioned what her party had achieved during its previous term in charge of economic affairs. Negotiations are ongoing. While ERC has expressed openness to housing incentives and the waste fee refund, the main obstacle remains the proposed IBI surcharge on vacant homes, which has not yet been accepted.

Reported by lamanyana.cat, ACN, laciutat.cat, territoris.cat, Marta Puig i Vidal, segre.com, diaricatalunya.cat, Lleida.com.