The municipality of Santa Cruz has announced its fiscal package for 2027, which includes maintaining the minimum Municipal Property Tax (IMI) rate of 0.3% for urban buildings. Additionally, the Family IMI program will continue to offer deductions of €30, €70, and €140 for households with one, two, or three or more dependents, respectively. Temporary IMI exemptions, set to expire in 2026, will be extended for two more years, until 2028, for properties meeting legal requirements, increasing the exemption period from three to five years.
Regarding Personal Income Tax (IRS), the 20% rebate on the net tax liability will be maintained. The Municipal Chamber justifies this decision by prioritizing the preservation of resources for scholarships, minor surgeries, local associations, and essential services, particularly for lower-income families. The municipality argues that increasing the IRS rebate to 5% would cost approximately €1.26 million annually, a sum close to the average annual debt repayments inherited from the previous administration.
The municipal surcharge (derrama) will remain at 1.5% on taxable profit, with an exemption for companies with a turnover up to €150,000. The municipal right-of-way fee also remains unchanged at 0.25%. These fiscal proposals require deliberation by the Municipal Assembly. The executive defends its fiscal choices, emphasizing the need for responsible financial management to fund planned investments totaling €13.2 million, including projects like the Caniço Taxi Rank and the redevelopment of Reis Magos Beach.
