Arenzana de Abajo approves the ICIO ordinance with a rate of 2.40 percent

The City Council of Arenzana de Abajo has finalized the modification of the Fiscal Ordinance Regulating the Tax on Construction, Installations, and Works (ICIO), which sets a tax rate of 2.40% on the material execution cost of the works. The agreement, adopted by the municipal Plenary, is published in the Official Gazette of La Rioja number 177, dated September 15, 2026, with the official reference BOR-A-20260915-III–3504.

The process began on June 25, 2026, when the Plenary, in an ordinary session, agreed to the provisional approval of the regulation. In accordance with Article 17.2 of the Recast Text of the Law Regulating Local Treasuries, approved by Royal Legislative Decree 2/2004, of March 5, the file was submitted for public consultation for thirty days via an announcement in the gazette. As no claims or allegations were presented, the provisional agreement was elevated to final status without the need for a new plenary agreement.

An indirect tax on construction activity

The ordinance regulates an indirect tax whose taxable event is the execution, within the municipal district, of any construction, installation, or work for which an urban planning license, responsible declaration, or prior communication is required. The taxable base is the real and effective cost of the work, understood as the material execution cost, excluding VAT, fees, professional honoraria, and the contractor’s business profit.

The tax accrues upon the start of the work, even if the license has not been obtained, and the management provides for a provisional payment on account within seven days from the granting of the license or the accrual, followed by a final settlement after the administrative verification of the real cost.

Rebates of up to 95 percent

Rebates are requested (not automatic), must be applied for from the start of the work, and are not compatible with one another. The ordinance provides for the following benefits on the quota:

• 95% for works declared of special interest or municipal utility due to social, cultural, historical-artistic circumstances, or for the promotion of employment.
• 95% for works that incorporate thermal or electrical energy utilization systems from solar or ambient energy, subject to administrative certification.
• 90% for works that improve access and habitability conditions for people with disabilities.
• 90% for works necessary for the installation of electric vehicle charging points, also subject to certification.
• 50% for works linked to plans for the promotion of private investment in infrastructure.
• 50% for works referring to social housing (VPO).

Validity and appeals

The ordinance shall enter into force upon its full publication in the Official Gazette of La Rioja and shall remain in effect until its express modification or repeal. An administrative appeal may be filed against the agreement before the Administrative Litigation Chamber of the High Court of Justice of La Rioja within two months from the day following the publication of the announcement. The document was signed in Arenzana de Abajo on September 10, 2026, by the mayor-president, Julio Francia Ojeda.

The regulation directly affects developers, builders, and individuals carrying out works in the municipality, who must take into account the new rate of 2.40% and the available bonuses, especially those linked to energy sustainability and accessibility, to plan their projects and request tax benefits in a timely and proper manner.

Source: Official Gazette of La Rioja, no. 177, September 15, 2026, section III. Other Provisions and Acts, pp. 15938-15941 (official reference: BOR-A-20260915-III–3504).