The Plenary of the Yaiza City Council has approved the elimination of fees for the occupation of public land with terraces, as well as several modifications to the taxes on constructions and works, which it claims will "reduce the tax pressure."
The new ordinance increases the tax rate of the Tax on Constructions, Installations and Works (ICIO), which goes from 2.4% to 3.5% of the cost of the work, but the government group affirms that at the same time the rate has been reduced, so "the tax pressure on citizens is reduced by 0.5 points.”
Regarding this rate, it indicates that “citizens will notice the reduction at the time of payment, since in general terms it goes from 2.6% to 1% of the material execution budget (PEM) of the work, that is, it is reduced by 1.6 points”. Furthermore, “the taxable base becomes the PEM and ceases to be the formula that was previously applied to the PEM, and which implied that it was increased by that 2.6%”. “Large investors conveyed this concern to us and we commissioned the relevant technical studies to find out if we could satisfy the demand with the purpose of stimulating greater private investment in our municipality,” says the mayor, Óscar Noda.
They also add from the Yaiza City Council that fixed fees are established “of 600 euros for the construction of family housing and 40 euros for prior communications”. In the case of reform, restoration or rehabilitation, “the tax rate will be 0.6%”.
“Yaiza maintains all tax breaks, including the deduction of the full amount of the amount paid as a fee for the granting of a building permit, for those constructions related to first homes that do not exceed 200 square meters built,” says the mayor.
