Benalmadena €35m debt reduction

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€35m debt reduction
Benalmadena council balance their budget

BENALMADENA COUNCIL has reduced its debt by tens of millions of Euros.

The town’s Mayor, Victor Navas, said the body had managed to lower its debt by €35 million to €91 million and predicts the figure will be at around 40 per cent of that number in 2019 “at the rate we are going.”

Navas added the council has now been able to change payment structures with its existing lenders, “something hitherto unthinkable with the debt level.”  He explained, “the idea is to continue lowering the average payment period to suppliers so that we are a council which inspires confidence despite the many difficulties we have encountered.”

Not everyone is convinced, however, with the opposing Partido Popular (PP) saying they left the council with a €23 million surplus in 2015 and that recent savings were only due to cuts made by the current council to public services.

Meanwhile, Mijas Council has had a similarly successful economic year, creating a €30 million surplus and saving enough funds to pass on tax breaks to its residents.

The underspend has allowed the council to lower taxes in Mijas from 2018, as revealed in last week’s RTN, at a cost of around €5 million to the municipality.  According to the town’s Mayor, Juan Carlos Maldonado, “the money will revert back to the people of Mijas who will be able to feel the results of the town hall’s sound financial situation in their pockets.”

As of next year, property tax (IBI) will be reduced from 0.508 per cent of a property’s value to 0.44826 per cent, while capital gains tax (Plusvalia), tax on some vehicles, inheritance tax and administrative fees will be lowered.

Capital gains tax will be lowered to 22 per cent, while inheritance tax will soon only apply to houses worth more than €100,000; double the previous amount of €50,000.  Fees for auctions, contracts, administrative forms and competitions will also be waived if they are under €6.

Non-polluting vehicles, including electric and solar cars, will receive a 75 per cent tax reduction from next year, while vehicles which minimise pollution, including hybrid vehicles, will see a 50 per cent reduction.

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