Palas de Rei approves the urban planning license fee from 0.5% to 2%

The Palas de Rei City Council has definitively approved the Fiscal Ordinance regulating the tax for urban planning licenses and prior communications, a regulation that taxes between 0.5% and 2% of the cost of the work for any intervention requiring a municipal enabling title. The text was published in the BOP Lugo nº 214, dated September 18, 2026, with reference R. 2459, and was signed by the mayor Pablo José Taboada Camoira on September 11, 2026. The ordinance comes into force once its full text is published in the provincial bulletin.

Approval without claims

The Plenary of the Palas de Rei City Council provisionally approved the ordinance on June 30, 2026. The public information announcement was inserted in the BOP Lugo nº 167, dated July 23, 2026, for access to the file and the submission of claims and suggestions.

During that period, no claims were submitted, therefore, in accordance with article 17 of the Royal Legislative Decree 2/2004, of March 5, which approves the recast text of the Law Regulating Local Treasuries, the provisional agreement was understood to be definitively adopted. The tax is based on articles 15 to 19 of the same regulation and covers the licenses and prior communications regulated by articles 142 and following of the Law 2/2016, of February 10, on the Land of Galicia.

What is taxed and who pays

The taxable event is the provision of the technical and administrative services necessary to grant the licenses, as well as the verification that the land-use acts comply with the urban planning, building, and police regulations. The regulation includes:

• Licenses derived from execution orders.
• Urban planning subdivision licenses.
• Divisions and segregations of properties on rural land.
• Prior communications of the applicable urban planning regulations.

Obligated to payment, as taxpayers, are the natural and legal persons and the entities under article 33 of the General Tax Law who are owners, possessors, or tenants of the properties where the constructions are carried out or the works are executed.

Rates and taxable base

The taxable base is the actual cost of the work according to the budget of the technical project endorsed by the corresponding official college; if it is not, it is determined by the municipal technicians applying the scales of those colleges. Taxes and fees, professional fees, and the contractor’s business profit are excluded from the base.

The approved rates are:

• Works with a material execution project of less than 1,000,000 euros: 0.5%.
• From 1,000,001 to 3,000,000 euros: 1%.
• Over 3,000,000 euros: 2%.
• Prior communications: minimum fee of 60 euros.
• Urban subdivision: 0.20 euros per square meter.
• Segregations, divisions, aggregations, and groupings of rural estates: 0.05 euros per square meter.
• Marking of alignments and gradients: 50 euros up to 10 meters of facade and 5 euros for each additional linear meter.

In the first occupation or change of use, the base is the real and effective cost of the dwelling, premises, or installation; in land subdivisions and demolitions, the value indicated for the purposes of the Property Tax. Only the exemptions and bonuses provided for in the general tax regulations apply.

Self-assessment and control

Taxpayers must submit a self-assessment of the fee and pay it when applying for the license. Once the works are completed, they must submit a complementary self-assessment if the real cost exceeded the declared amount. If payment was not made within the deadline or was made for an amount lower than the quota, the City Council will carry out a provisional liquidation and initiate the procedure provided for in the tax legislation. Unpaid quotas will be demanded through enforcement proceedings.

The application must specify the work or construction, the location, the real budget, and the technical project signed by a competent professional.

Impact

The entry into force of the fee affects any developer, construction company, or resident of Palas de Rei who promotes a work, a land subdivision, or a prior notification, and introduces a progressive scale that relatively increases the cost of interventions with higher budgets. The same issue of the bulletin also includes the final approval of the General Ordinance Regulating Public Prices of the council, with reference R. 2458.

Source: BOP Lugo, no. 214, September 18, 2026, section I, City Council of Palas de Rei (official reference: R. 2459).