Escamilla approves the ICIO at 3% and increases the cost of municipal works

The Escamilla City Council has definitively approved the modification of the Fiscal Ordinance Regulating the Tax on Constructions, Installations, and Works (ICIO), which sets the tax rate at 3%. The decision, adopted by the municipal plenary and signed by Mayor Alfonso Antonio Santos Vindel, is published in the Official Gazette of the Province of Guadalajara number 158, dated August 19, 2026.

As no claims were filed during the public exhibition period, the provisional plenary agreement was automatically elevated to definitive. The full text is made public for general knowledge, in compliance with article 17.4 of the Recast Text of the Law Regulating Local Treasuries, approved by Royal Legislative Decree 2/2004, of March 5.

The new tax rate

The modification affects Article 7. Tax Liability of the ordinance, which now establishes that the tax liability will be the result of applying the tax rate fixed at 3% to the taxable base. Consequently, any work, installation, or construction carried out in the municipality will see an increase in the fiscal cost to be paid to the council.

The ICIO is a local tax under municipal management that taxes the execution of works, installations, and constructions for which an urban planning license is required. The applicable rate is the responsibility of each city council, which may set it within the limits established by state regulations.

Processing and appeals

The agreement was adopted in a plenary session and, as no claims were registered during the allegations period, it was considered definitive without the need for a new vote. Publication in the official gazette provides public notice of the text and opens the period for possible challenges.

An administrative-law appeal may be filed against the agreement before the Administrative Litigation Chamber of the High Court of Justice of Castilla-La Mancha, based in Albacete, within two months from the day following the publication of the announcement, pursuant to article 46 of Law 29/1998, of July 13, of the Administrative Litigation Jurisdiction.

• Issuing body: Escamilla City Council.
• Date of agreement: August 12, 2026.
• Tax rate: 3%.
• Appeal period: two months from publication.
• Appeal venue: TSJ of Castilla-La Mancha, Albacete.

Impact for residents

The increase in the tax rate makes any work in the municipality more expensive, from home renovations to new constructions or industrial installations. Taxpayers planning works must budget for the additional cost of 3% on the taxable base, which may discourage local construction activity.

The measure is part of the city council’s fiscal policy to strengthen its own revenues. The publication in the BOP of Guadalajara number 158, dated August 19, 2026, gives full effect to the ordinance, which remains in force for works starting from its date of application.

Source: Official Gazette of the Province of Guadalajara, No. 158, August 19, 2026, City Councils section (official reference: document 2026_2199, verification code 0fc53f1aaf7455a7a13ba9f20b71123d38bd0142).