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Orihuela City Council aims to generate €7.7 million in 2025 from the Construction, Installations, and Works Tax (ICIO), a substantial increase from the €2.8 million collected in 2024.
The 2024 forecast had projected €8.8 million in revenue, but by November, the actual figure stood significantly lower.
To bridge this gap, the PP-Vox government plans to auction three municipal plots on Orihuela Costa, enabling the construction of 248 new homes and generating €790,624 in additional income.
The three plots include:
R-4 of PAU 20-La Ciñuelica: 65 homes, expected to bring €138,735.38.
R-11 in La Cuerda: 89 homes, projected revenue of €246,329.43.
AUR-38 of PAU 21-Peña del Águila: 94 homes, contributing €405,559.19.
This auction was previously considered in the 2024 budget but was not implemented due to uncertainties about market conditions and auction outcomes. Mayor and Economic Regime Councillor Pepe Vegara emphasised caution in estimating revenue, highlighting the need for prudent financial planning.
The 2025 ICIO revenue projection is based on three key factors:
Revised Calculation Module: A new module of €797 per square meter will be applied, a 59% increase from the current €500.36 per square meter.
Extraordinary Income from Auctions: The sale of municipal plots is expected to boost revenue.
Improved Collection System: Adjustments made in 2024 to the ICIO pre-settlement system are anticipated to enhance efficiency and reduce payment delays.
In contrast to 2024, the City Council has excluded revenue projections for projects under the Generalitat’s jurisdiction that remain uninitiated. These projects include the first homes in Cala Mosca, the expansion of courts, the transformation of the Palace of the Marquis of Rafal into the Casa del Agua y del Limón, a second health centre for Orihuela Costa, and the rehabilitation of the old asylum as a residence for the Oriol Centre.
The 2024 shortfall arose from overly optimistic forecasts. The ICIO revenue for that year is expected to reach just €2.89 million, far below the €4.77 million average for 2022-2024.
With a more cautious and targeted approach, Orihuela City Council hopes to not only recover lost revenue but also position itself for sustainable growth in 2025, leveraging auctions and improved tax policies to address its financial challenges.
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