The package of tax subsidies for the city for 2016 totals 7.1 million euros, nine times the original budget. The 3.5 million euros coming from the increase in property tax (IBI) applied to the 2% of owners with the most expensive property will go towards helping 20,000 families with low incomes. The modification to the budget also means subsidies for self-employed workers, entrepreneurs, businesses and emblematic establishments.

Families with the lowest incomes will receive subsidies to finance 50% of their property tax, up to a maximum of 175 euros. Some 20,000 households are expected to benefit from the measures, mainly families with one or more householders on non-contributory pensions, unemployment benefit, jobseeker’s allowance, income support (PIRMI), or who have used up all entitlements to benefits. The budgetary item of 3.5 million euros comes from the IBI increase for owners with the most expensive property, effectively meaning 2% of owners in the city are helping out families with the lowest incomes.

The aim of the municipal government is to create a tax model which is fairer, which re-distributes and reaches new groups of society which until now were unable to benefit from exemptions and tax relief. As explained by the First Deputy Mayor, Gerardo Pisarello: “We don’t want a dual Barcelona, we want a fairer tax policy, where whoever is most in need pays less and whoever is best off pays more”.

Tax subsidies for 2016 are multiplied by nine

City Council expects to allocate 7.1 million euros in tax subsidies during 2016, representing a ninefold increase on the 800,000 euros originally set aside and offering new subsidies for society’s most vulnerable in an effort to make the city’s tax system fairer.

The modification to the current budget is in line with agreements reached with left-wing political groups and also means subsidies for new self-employed workers and for 211 emblematic establishments. Cultural enterprises investing in and running facilities in the city will also benefit, as will companies on the Reempresa programme and over a thousand companies generating permanent work contracts.

The tax subsidies are possible thanks to the budget modification by the municipal government which is being negotiated with other formations. For more information on the subsidies click here.