Bilbao approves 99% IBI tax reduction for rental housing

The Bilbao City Council has approved fiscal ordinances for 2027, featuring significant changes to property and tourism taxes. A key amendment provides a 99 percent reduction in the Property Tax (IBI) for owners who transition their homes into public rental programs.

Additionally, the council approved a new measure regarding student residences that operate as hotels during summer months. These facilities will now be classified as three-star hotels, subject to a tax of two euros per night.

While the government team aims to freeze taxes to avoid increasing fiscal pressure on citizens during a period of rising living costs, opposition members have raised concerns. Specifically, representatives from the PP argued that the tax freeze is ineffective because changes to cadastral values have effectively increased IBI receipts.