Estepona Debt Free: Tax Cuts and Investor Confidence 2025

Estepona Debt Free: A Historic Milestone Boosting Property Investment Confidence on the Costa del Sol. In June 2025, the town of Estepona announced a remarkable achievement: the complete elimination of its municipal debt. After more than a decade of disciplined financial management, over €300 million in liabilities have been fully paid off. This historic milestone positions Estepona as one of the most fiscally responsible and investor-attractive municipalities in Spain.

With Estepona debt free for the first time in modern history, the town now offers one of the most financially stable environments in southern Spain. This fiscal achievement not only reduces long-term risk for homeowners but also signals to international investors that Estepona is a secure, well-managed, and forward-looking destination for real estate investment on the Costa del Sol.

For property buyers, homeowners, and international investors, this marks a major step toward long-term confidence in Estepona’s real estate market.
Estepona Eliminates €300 Million in Debt and Reduces Property Taxes
Estepona’s debt cancellation is not just symbolic—it has immediate, tangible benefits for residents and property owners.

• €300 million in total debt cleared by 2025
• €60,000 per day dedicated to debt repayment since 2011
• 2025 IBI (property tax) reduced by 20 percent
• Overall IBI tax down 50 percent since 2011
• Average supplier payment time reduced from 1,492 days to just 12 days

This turnaround is officially certified by the town’s Interventor Municipal (Financial Auditor) and reflects the city’s ongoing commitment to financial transparency, efficiency, and economic sustainability.

In 2011, Estepona faced a severe financial crisis. The town hall had accumulated more than €300 million in debt and was paying daily interest penalties of €5,000. Suppliers were waiting years for payment—up to 1,492 days in some cases. Public services were deteriorating, and the town had little ability to invest in infrastructure.

Key liabilities included:

• €60 million owed to Social Security
• €18 million owed to the Spanish Tax Agency
• €6 million owed to the Andalusian regional government
• €90 million covered under the national Supplier Payment Plan
• €33 million in unpaid and undocumented invoices

Despite these challenges, the local government began implementing strict financial controls in 2011. Without raising taxes or taking on new loans, Estepona paid down its debt using budget surpluses, careful cost control, and a strong focus on long-term solvency.

The absence of debt has allowed Estepona to reinvest its budget surpluses into public works, quality-of-life projects, and urban renewal, all without external borrowing.

Notable projects include:

• More than 130 renovated streets and plazas under the “Garden of the Costa del Sol” initiative
• 95 percent completion of the Coastal Pathway (Senda Litoral), connecting beachfront communities
• Major civic landmarks: Felipe VI Auditorium, the Orchidarium, the new Mirador del Carmen cultural center
• Over 2,000 underground parking spaces built, with additional facilities underway
• New high-resolution hospital built and transferred to the Andalusian government
• Ongoing development of a velodrome, riverside walkways, and cultural amenities

With a €7.7 million surplus in 2024, the town has allocated €8.3 million toward new investments in 2025 alone, further improving livability and urban appeal.

Estepona Debt Free transformation has powerful implications for the real estate market.

• Low and decreasing property taxes attract buyers and reduce annual ownership costs
• Efficient governance and strong urban planning increase resale value
• High-quality infrastructure improves rental appeal and occupancy rates
• Reduced financial risk strengthens long-term investor confidence
• Prime areas like Guadalmansa, Torre Bermeja, Cabo Bermejo, and Las Dunas Park become more desirable

With zero debt, strong economic governance, and ongoing investment in infrastructure and sustainability, Estepona is one of the most promising property markets on the Costa del Sol.

At Livingstone Estates, we specialize in luxury beachfront apartments, modern villas, and high-yield investment properties across Estepona’s most exclusive areas. Whether you are looking to relocate, purchase a second home, or invest with a long-term view, our team is here to help you navigate the market with confidence.

Browse our latest listings: www.livingstone-estates.com/properties
Email: info@livingstone-estates.com
Phone: +34 952 806 417

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