Cualedro approves the ICIO ordinance with rates from 2% to 4%

The Cualedro City Council has definitively approved the Fiscal Ordinance regulating the tax on constructions, installations, and works (ICIO), which establishes progressive tax rates from 2% to 4% and bonuses of up to 95%. The agreement, initially adopted by the Plenary on August 17, 2026, became final as no claims were filed and was published in the Official Gazette of the Province of Ourense on October 16, 2026, in section IV. Local Entities, with the signature of Mayor Luciano Rivero Cuquejo.

The ordinance is developed under Royal Legislative Decree 2/2004, of March 5, which approves the revised text of the Law regulating local finances, and its article 103.2 regarding bonuses. The text will enter into force the day following its publication in the provincial gazette and will remain in effect until its express modification or repeal. A contentious-administrative appeal may be filed against the definitive approval before the Contentious-Administrative Chamber of the High Court of Justice of Galicia, based in A Coruña, within two months from the day following publication.

Progressive rates according to the material execution budget

The quota results from applying a progressive rate to the taxable base based on the material execution budget (OEM):

• Up to €100,000.00: 2.00%.
• From €100,000.00 to €200,000.00: 2.50%.
• From €200,001.00 to €500,000.00: 3.00%.
• From €500,001.00 onwards: 4.00%.

The taxable base is the real and effective cost of the material execution of the work. Excluded are value-added tax and similar taxes, fees, public prices, and other patrimonial benefits of a local public nature, professional fees, and the contractor’s business profit.

Bonuses of up to 95% and exemptions

The text includes three bonuses, which are incompatible with each other:

• Up to 95% for works declared of special interest or municipal utility due to social, cultural, historical-artistic circumstances or employment promotion; the declaration corresponds to the Plenary by simple majority, following a request from the taxpayer.
• Up to 90% for works in buildings or community housing that favor the access and habitability of people with disabilities in common use areas.
• Up to 50% for official protected housing.

The execution of constructions, installations, or works owned by the State, the autonomous communities, or local entities is exempt when they are directly intended for roads, railways, ports, airports, hydraulic works, and sanitation of populations and their wastewater.

Who pays and how the tax is managed

The taxable persons are the natural or legal persons who own the properties on which the works are carried out, even if they are not the owners of the property. Those who request the license or submit the responsible declaration or prior communication, or those who carry out the works, have the status of substitutes. Taxable persons residing abroad for more than six months a year must designate a representative with a domicile in Spanish territory.

The taxable event encompasses any construction, installation, or work that requires an urban planning license, responsible declaration, or prior communication, including:

• New construction works and demolitions.
• Works in buildings that modify their interior layout or exterior appearance.
• Alignments and gradients, plumbing, and supply networks.
• Earthworks, cuttings, leveling, excavations, filling of pits, ditches, and embankments.
• Wind farms, solar farms, and their repowering.

The tax accrues at the moment the work begins, even without prior communication or a license. Management is carried out under a direct income settlement regime and, if the works begin without an enabling title, the taxable person has one month to submit the tax declaration. If the works do not begin and the interested party waives the license or it expires, they will be entitled to a refund of the amount paid. Infractions and sanctions are referred to Law 58/2003, of December 17, general tax law.

Another urban ordinance on the same date

In the same publication, the City Council of Cualedro gives final approval to the Fiscal Ordinance regulating the fee for the provision of urban services, processed in parallel following the plenary agreement of August 17, 2026. This regulation sets progressive rates from 1% to 2% on the material execution budget and will require the fee under a self-assessment regime.

The entry into force of the ICIO directly affects promoters, builders, and owners who promote works in the municipality, who from now on must calculate the tax based on the material execution cost and may apply for bonuses of up to 95% for projects of municipal interest. The regulation also introduces a direct settlement regime and specific deadlines to regularize works started without an enabling title.

Source: Official Gazette of the Province of Ourense, October 16, 2026, section IV. Local Entities (official reference: edict 352764, R. 2.346).