Tarancón makes the construction tax ordinance final

The Tarancón City Council has finalized the modification of Fiscal Ordinance No. 18 regulating the Tax on Constructions, Installations, and Works (ICIO), as no claims were filed during the public exhibition period. The full text is published in the Official Gazette of the Province of Cuenca, number 98, dated August 26, 2026, pages 25 to 30, under number 2032.

The decision stems from the plenary agreement adopted in the ordinary session of June 25, 2026, whose provisional approval was announced in bulletin number 74, dated July 1, 2026. Since no objections were registered, the agreement is automatically finalized in accordance with article 17.3 of the Recast Text of the Law Regulating Local Treasuries, approved by Royal Legislative Decree 2/2004, of March 5. The announcement is signed by the mayor, José López Carrizo, in Tarancón, on August 21, 2026.

A 3% rate and self-assessment regime

The ordinance sets the tax rate at 3 per 100, applied to the taxable base, which is determined by the real and effective cost of the work, i.e., its material execution cost. VAT, fees and public prices, professional fees, and the contractor’s business profit are excluded from the base.

The tax is required under a self-assessment regime, of a provisional nature, which must be submitted and paid at the time of requesting the urban planning or construction license, or when submitting a responsible declaration or prior communication. Once the work is completed, the City Council carries out the final settlement following an administrative verification of the real cost.

Bonuses for municipal interest

The ordinance provides for bonuses for works declared to be of special municipal interest or utility, based on their social, cultural, historical-artistic impact, or employment promotion. The established percentages are as follows:

• 20% for constructions, installations, and works carried out in the Old Town and the San Roque Neighborhood.
• 10% for the construction of new Official Protection housing.
• 90% for works to improve accessibility and habitability in homes and premises built prior to the entry into force of Law 1/1994, of May 24, on accessibility and the removal of barriers in Castilla-La Mancha.

These percentages are not cumulative. To benefit, taxpayers must submit a request with a justifying report and supporting documentation, communicate the start and end of the works, and maintain the authorized conditions of use. It is the responsibility of the Plenary to declare the special municipal interest or utility.

Scope and validity

The tax levies any construction, installation, or work carried out within the municipal boundary for which a license is required, whether or not it has been obtained. Works owned by the State, the autonomous communities, or local entities destined for roads, railways, ports, airports, hydraulic works, or sanitation are exempt.

The ordinance shall enter into force on the day its full text is published in the provincial bulletin, 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 Castilla-La Mancha, based in Albacete, within two months from the day following the publication of the announcement.

The new regulation provides legal certainty to developers and residents of Tarancón, who will know in advance the fiscal cost of their works and the available bonuses, with special incentive for the rehabilitation of the historic center and the improvement of accessibility.

Source: Official Bulletin of the Province of Cuenca, no. 98, August 26, 2026, pp. 25-30 (official reference: no. 2032).