The Lugo council has approved significant tax reforms aimed at improving access to rental housing and stimulating economic activity to foster job creation and retain local talent.
As part of the housing initiative, the reforms introduce a 95% reduction in the Impuesto sobre Bienes Inmuebles (IBI), or property tax, for owners who join the municipal Lugo Aluga programme. This initiative seeks to mobilise properties for rental at affordable prices while providing guarantees for both landlords and prospective tenants.
In addition to housing measures, the tax reforms are designed to encourage the establishment of new businesses and the expansion of existing ones within the municipality. Tax reductions of up to 80% will be available on the IBI, the Impuesto sobre Construcciones, Instalaciones y Obras (ICIO), and the Impuesto sobre Actividades Económicas (IAE), depending on the conditions set out in the relevant regulations.
These measures are part of a broader fiscal policy aimed at facilitating housing availability, supporting business activity, and creating job opportunities in Lugo, thereby contributing to the retention of local talent.
