Mondoñedo approves the fiscal ordinance for the economic activities tax

The City Council of Mondoñedo has finalized fiscal ordinance no. 59 regulating the tax on economic activities (IAE), after no claims were presented during the public exhibition period. The final approval was adopted by the Municipal Plenary in the ordinary session of May 28, 2026, and was published in the Official Gazette of the Province of Lugo no. 202, on September 4, 2026 (reference R. 2345).

The regulation, signed by Mayor Manuel Ángel Otero Legide, complies with article 17.4 of Royal Legislative Decree 2/2004, of March 5, which approves the revised text of the Law Regulating Local Treasuries. The ordinance enters into force once its full transcription is published in the provincial gazette, and will remain in effect until its modification or express repeal is agreed upon.

Coefficients and fiscal categories

The ordinance establishes the minimum municipal quota and the weighting coefficient by turnover, as well as the physical location coefficient applied to the quotas of the current tariffs. The classification of the streets determines the coefficient applicable to each establishment:

• 1st Category (streets of the historic center): coefficient 1.1852713.
• 2nd Category (remaining streets and roads of the municipality): coefficient 1.0852713.

In the event that an establishment faces two streets, the coefficient corresponding to the street with the higher assigned index shall be applied.

Bonuses for job creation

Article 5 of the ordinance establishes a bonus of 95% of the full tax quota for those properties in which economic activities declared of special municipal interest or utility are developed, due to social, cultural, historical-artistic circumstances or employment promotion. The grading of the percentage based on the number of jobs created is as follows:

• 95% for the creation of more than 20 jobs.
• 75% for the creation of between 11 and 20 jobs.
• 50% for the creation of up to 10 jobs.

The bonus will be applicable only to properties where a new economic or business activity is implemented, as well as to those where facilities are expanded, provided it implies the creation or maintenance of employment.

Impact for companies and freelancers

The new regulation directly affects companies and freelancers in the municipality of Mondoñedo, who will see their IAE tax burden reduced based on their commitment to job creation and the development of activities of municipal interest. The ordinance seeks to incentivize the implementation of new economic activities and the expansion of existing facilities, favoring the revitalization of the local productive fabric.

Source: Official Gazette of the Province of Lugo, no. 202, September 4, 2026, City Council of Mondoñedo section (official reference: R. 2345).