Town Halls Weigh Up to 150% Property Tax Surcharges on Tourist Lets Municipalities across the Costa del Sol consider steep IBI surcharges on tourist flats as regional authorities give town halls sweeping powers to rebalance local housing. New Legal Powers Hand Councils a Blunt Instrument Town halls across the Costa del Sol are deciding whether to use one of the toughest fiscal tools yet offered to Spanish municipalities: the ability to raise the Impuesto sobre Bienes Inmuebles (IBI) by up to 150% on homes let out to tourists that are not someone's main residence. The legal clearance giving councils this discretion has landed at a moment when frustration over housing availability has rarely been higher, and several town halls are now working out how, and whether, to use it. The IBI is the annual property tax every homeowner in Spain already pays, calculated from the cadastral value of a property and collected by the local ayuntamiento. What changes under the new framework is that councils can now apply a steep surcharge specifically to properties registered as tourist lets but not lived in full-time by their owners. In practical terms, a flat currently taxed at a modest annual sum could see that bill more than double if the local council opts for the maximum rate. Why Málaga, Marbella and Mijas Are Under Pressure The towns most actively exploring the surcharge are also those where long-term rental stock has become hardest to find. Málaga city, Marbella and Mijas have all seen holiday-let registrations climb over recent years, often concentrated in the same central and coastal neighbourhoods where young families and local workers are trying to rent. Councils in these areas have held exploratory sessions this week to begin drafting the local ordinances that would be needed to bring any surcharge into force. Under the statutory provisions, the measure would apply to dwellings listed on official tourism registries that are not occupied as a primary family home, with the earliest possible application from the 2027 fiscal year. That gives both town halls and owners a window of roughly two to three years to adjust, assuming councils move ahead with ordinances in the near term. Officials have been clear that the aim is not simply to raise extra revenue but to persuade owners to switch units back into conventional long-term contracts, in neighbourhoods where rental prices in the western part of the province have climbed sharply in a short space of time. What It Means for Owners and Investors For foreign homeowners and buy-to-let investors, many of whom bought specifically to let on short-term platforms, the surcharge changes the sums involved. A property generating solid seasonal income could see a meaningful chunk of that profit absorbed by a higher annual tax bill, depending on how each council sets its rate. Advisers working with international clients stress that outcomes will differ significantly from one municipality to the next: tourist-dependent towns reliant on short-let visitor spending may be reluctant to apply the full 150%, while others under heavier pressure from local housing demonstrations appear more willing to use it as a deterrent. This uncertainty is already shaping buying decisions. Prospective purchasers are showing more interest in developments with a clear residential designation from the outset, rather than units bought with holiday letting in mind that could later be caught by a council's new tax regime. For buyers weighing off-plan or completed properties, taking advice from specialists such as Marbella New Homes before signing anything has become a sensible step, given how much legal clarity now depends on each town hall's individual stance. Residents' Groups Welcome the Move Neighbourhood associations in central Málaga and Fuengirola have been pushing for action of this kind for some time, arguing that the steady conversion of apartment blocks into revolving holiday accommodation has hollowed out ordinary community life and made it harder for teachers, hospitality staff and other essential workers to find anywhere affordable to live nearby. For these groups, the prospect of a punitive surcharge is a long-overdue correction rather than an attack on legitimate small landlords. The coming weeks of municipal debate, expected to wrap up before the winter recess, should make clear which councils intend to go for the maximum 150% rate and which will hold back. Until those decisions are published, owners of tourist-let properties across the coast are left watching town hall agendas closely, aware that the outcome could materially change what their investment is worth from 2027 onward. *Marbella New Homes advises buyers on navigating local tourist-licence and residential-use regulations before purchase.*