The Estepona City Council has celebrated the first anniversary of the elimination of its financial debt, closing 2025 with a surplus of €40.29 million and the largest public investment in its history.
Estepona has marked the first anniversary of the elimination of its financial debt by consolidating the best economic indicators in its history. A year after settling the €300 million liabilities inherited in 2011, the City Council has closed a fiscal year characterised by increased public investment, a surplus exceeding €40 million, the largest tax cut applied in the city, and a financial position that has placed the municipality among the most solvent councils in Spain.
The disappearance of the debt has allowed the City Council to stop allocating an average of €60,000 daily to pay financial obligations and redirect those resources to investments, public services, and support measures for families. The Mayor of Estepona, José María García Urbano, has stated that, after eliminating "that economic burden resulting from the poor management of the governments that preceded me", the city is entering a new phase "with a sound economy, lower taxes, and more capacity to improve the city and the lives of its residents."
Record investment of €76.3 million
The change in the financial landscape has also been reflected in the municipal budget. This year, the City Council has increased the allocation for investments to €76.3 million, the highest figure recorded by the municipality, thanks to budget modifications approved after the public accounts were sanitised.
These resources will be used to complete ongoing projects, initiate new urban actions, and strengthen essential services related to maintenance, conservation of public spaces, and improvement of municipal infrastructure. Planned actions include the completion of the coastal corridor, new investments in neighbourhoods, improvements in public parks, energy efficiency projects, and the expansion of the municipal underground parking network with a fee of one euro per day for users.
Historic tax cut for residents
The improvement in the economic situation has also allowed for the consolidation of the tax reduction policy initiated over a decade ago. This year, the City Council has allocated more than seven million euros to maintain the tax rebates applied to the Property Tax (IBI) and the waste collection fee, a measure that benefits thousands of taxpayers in the municipality.
Specifically, the City Council has allocated €6.62 million to IBI rebates and another €143,804 for exemptions on the waste collection fee. García Urbano has highlighted that these measures allow the City Council to maintain its commitment since 2011 not to increase the tax burden on citizens and to strengthen support for families, especially the most vulnerable groups.
Since the start of the current management model, the IBI bill has accumulated an average reduction of 50%. An additional 3% discount has been added for taxpayers who set up direct debit payments for both IBI and the Economic Activities Tax (IAE) and the waste collection fee within the voluntary payment period. For the residents of Estepona, this translates into direct relief in their pockets, with bills that have shifted from being among the highest on the Costa del Sol to being among the most competitive.
Surplus and record treasury
The strength of the municipal accounts has also been reflected in the settlement of the 2025 budget. The City Council has closed the fiscal year with a surplus of €40.29 million, a result that has allowed for continued financing of strategic actions for the city.
The municipal treasury has also strengthened its position during the last fiscal year. The available balance in the City Council's bank accounts has reached €90.1 million at the close of 2025, reflecting the financial capacity acquired after completing the economic sanitisation process. This liquidity allows the City Council to tackle new projects without resorting to debt.
Lower unemployment and economic dynamism
The City Council has linked the improvement of its accounts to the economic dynamism that the municipality has experienced in recent years. According to municipal data, the increase in public investment has contributed to sustaining economic activity and employment, placing Estepona among the Andalusian municipalities with the lowest unemployment rate.
The unemployment rate has fallen below 9%, far from the 28.45% recorded in 2011, when the city was simultaneously facing high financial debt and one of the highest unemployment levels in its recent history. For residents, this means more job opportunities and a more stable economic environment.
For García Urbano, the evolution of the municipal accounts demonstrates that financial sanitisation has freed up resources to improve public services, increase investment, and reduce the tax burden on citizens without compromising budgetary balance. "This year has been the first in which it has not been necessary to allocate an average of €60,000 daily to pay off that inherited debt, directing those important public resources to public services, investments, and improving the quality of life for residents," the mayor stated.
With this situation, Estepona faces the future with a more solid economic structure and greater capacity to continue promoting new urban development projects. Residents can expect that upcoming investments will focus on improving mobility, green spaces, and public facilities, all without increasing the tax burden.
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