Residents of Estepona are expressing a mix of joy and relief following the announcement from Mayor Jose Garcia Urbano regarding plans to reduce property taxes significantly in 2026. This comes after the town successfully eliminated a massive €304 million debt.
The proposed relief will allocate €6.6 million towards lowering annual property tax (IBI) bills by an average of 20% for approximately 38,000 households in the area. Additionally, registered retirees and the long-term unemployed will be exempt from the municipal waste collection fee.
While many residents praise the mayor for reversing a 14-year period of austerity that saw the town hall paying off an average of €60,000 daily to manage the debt inherited from previous administrations, Urbano’s financial strategies have not been without controversy. He reached this ‘zero debt’ milestone through strict cost controls and aggressive land sales to developers, resulting in a drastic decrease in debt per resident from around €4,600 to under €400.
Urbano claims that Estepona now boasts the highest level of public investment per resident in the province, with an estimated €76.3 million set aside for this year. The town hall also reports an impressive supplier payment period of just 15 days—one of the fastest in Spain.
However, the rapid growth and beautification of the town center have led to rising property prices, pushing many locals out of their neighborhoods. Properties along the ‘New Golden Mile’ have surpassed €7,000 per square meter, while luxury homes in the Seghers area are frequently sold for millions.
In a contentious move, Urbano auctioned off valuable land meant to support education for impoverished women, resulting in a €68.5 million sale to a major developer, Kronos Homes. As president of the foundation overseeing the land, Urbano is under scrutiny for how proceeds from this sale will be utilized, as a report detailing the transaction remains absent from regulatory files.
The mayor is also under investigation for allegedly selling public land at below-market prices to generate quick cash, prompting legal proceedings from the Prosecutor’s Office. In one instance, a property was sold to a developer and former business partner of the mayor at half its value, although this case was shelved earlier in 2023.
Currently, Urbano is facing potential prison time as well as an eight-year ban from public office due to allegations of influence peddling and misuse of funds. Reports indicate he employed a close associate who reportedly did not fulfill any job duties while receiving substantial compensation.
Despite these challenges, the local council has approved a €132 million budget for 2026, supported by a €40.29 million surplus, which Urbano argues can be redirected towards enhancing public services and investments. The situation presents a complex picture of a municipality balancing significant public investment and tax relief against the backdrop of serious corruption allegations involving its leader.