The property tax falls for the fifth time in Madrid in 2026 and approaches the legal limit of 4%. According to the initial draft of the tax laws, the IBI tax rate will fall from 0.428% to 0.414%, meaning a saving of €30.8 million for Madrid residents, according to calculations by the Madrid City Council. However, for the Regional Federation of Neighborhood Associations of Madrid, this amendment for next year does not address the essential elements “that would allow Transform IBI into an effective tool to contribute to public policies that address the current housing crisis To achieve this goal, they propose in their summary of claims to increase the bonuses applied to officially protected and socially rented housing, impose a surcharge on empty properties, include households with a disability of more than 33% in the bonuses for large families or create a municipal assistance program to cover at least half of the IBI for pensioners, the unemployed or beneficiaries of a minimum income whose income is less than three times the IPREM in the 14 you pay, i.e. currently 25,200 euros.
As for people who own officially protected housing and those who can be compared according to the standards of the Community of Madrid, they propose a Bonus of 50% of full IBI fees for the first four yearsThis number will decrease to 30% in the fifth tax period and reach 10% during the sixth tax period. For residents of properties owned by the Madrid Municipal Housing and Land Company (EMVS Madrid) or private entities within the framework of public-private cooperation agreements for affordable rents, the bonus will be 95%, according to Fravm’s proposal. The same reduction will correspond to the premises of social entities.
In 2026, more than 36,000 families will benefit from the reductions allocated to large families from this tax, at a rate of up to 90%, depending on the cadastral value of the property. At this stage, the district representative proposes to update the criteria for applying rewards based on two cases. On the one hand, for Families in which one member suffers from a disability of more than 33%attributes them to the same level as large families of the special category; On the other hand, deductions depend on family income and not on the cadastral value.
For the most vulnerable groups whose individual or family income is less than three times the MII in 14 payments, i.e. around €25,000 per year, Fravm believes that Promoting a tax assistance program. Specifically, it targets Social Security system retirees, the unemployed, recipients of a minimum living income, victims of gender violence, and single-parent families with dependent children. The area of Economics, Innovation and Finance, in collaboration with the area of Social Policy, Family and Equality, will be responsible for covering at least 50% of the final IBI fee.
Without specifying the amount, he calls for imposing an additional fee on unoccupied residential properties to “address the housing crisis.” Whether for homes that have been empty for more than two years or for properties that are not regular residences or rented by third parties. If the period is longer than three years, the additional fee will be 100%. If the property is owned by two or more homeowners for residential use, it will be 150%.
These proposed additional fees It will not be applied, upon taxpayer request and proof of status, to public administration property. Or rent at affordable prices; – Residences designated for hospitality, accommodation, professional or commercial activities. Nor on assets whose owner died within the past year or which form part of the inheritance for a few years since the owner’s death; Nor those that are renewed on the tax due date or that have been declared bankrupt.
To make renting easier, Fravm suggests Exemption for empty homes that have been rented for a period of no less than 9 months. A lease will be required, as well as proof of a deposit. Homes whose ownership corresponds to people registered in nursing homes or those whose ownership corresponds to people registered in a family member’s home if dependent on their care will also be free from the unoccupied property surcharge.