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V1691-23 13 June 2023 · SG de Tributos Locales Criterion in force
OTRO · icio

Different ICIO tax rates cannot be applied to different types of land

A query was raised regarding whether local councils can set different tax rates for urban and rural land within the ICIO. The DGT ruled that, while local authorities have the autonomy to set rates, this power is subject to legal limits.

The question raised

It is asked whether tax ordinances can approve different tax rates for different types of land. That is, whether a rate can be set for urban land and a different one for rural land.

The DGT's ruling

Municipalities have autonomy to set the ICIO tax rate without exceeding four percent. However, this autonomy does not allow for the establishment of different tax rates for different types of constructions, installations, or works, nor for different types of land.

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