The implementation of the new waste tax is reshaping how municipalities charge for waste collection and treatment services across much of Spain. In cities like Santander, Bilbao, Cádiz, and Sant Just Desvern, the waste bill has been separated from the water bill and redesigned to better reflect the actual cost of the system.
This change is driven by the legal obligation to adapt ordinances to state and European regulations, but each local council is introducing social and environmental incentives to mitigate the impact on people's wallets and reward those who recycle more and generate less waste.
A mandatory fee that must cover the actual cost of the service
Law 7/2022 on waste and contaminated soils for a circular economy has mandated that municipalities implement a specific, differentiated, and non-deficit-based fee for urban waste management. This means that the fee must cover the full cost of collection, transport, and treatment, and cannot be used to finance other municipal services.
In cities like Santander and Cádiz , the city councils insist that creating or updating this fee is not a voluntary decision , but rather the result of a regulatory requirement that transposes the European Union's Waste Framework Directive . In Cádiz, for example, it is estimated that the service requires raising more than 11 million euros , compared to the slightly more than 7,5 million euros obtained with the previous fee.
Another significant change is that the fee is now charged separately . Municipalities like Cádiz and Santander have removed the garbage collection fee from the water bill , so taxpayers now receive a separate waste bill with its own structure and specific discounts.
Meanwhile, many local corporations point out that, although the legal deadlines have expired , they have tried to apply the "least burdensome" formula possible for residents, seeking a balance between financing the service and tax fairness.
How the new rate is calculated: fixed and variable parts, and different models depending on the city.
Many municipalities are opting for a mixed waste fee structure , combining a common basic fee and a variable part that attempts to approximate the potential waste generation of each household or activity.
In Santander , the residential rate consists of a fixed part of 103,64 euros per year per dwelling and a variable section linked to the number of registered residents: the amount ranges from about 10,99 euros in properties with one or no registered residents to 48,04 euros for dwellings with four or more residents.
In Bilbao , the City Council has defined two components: a basic component , justified by the mere existence of the service and based on the principle of economic capacity , and a specific component , calculated according to the potential generation of waste. This second component takes into account factors such as the cadastral value of the property , the number of people registered in residential dwellings, and the economic activity and surface area of ​​non-residential premises.
In Cadiz , the new ordinance also separates the water rate from the water bill, introducing a basic fee linked to the cadastral value and a variable component based on the number of registered residents in each home. The local government has explained that, for homes with a lower cadastral value and three or four residents, the average increase in the bill is around 20% , which translates to just over one and a half euros per month , while for higher-value properties the increase is greater.
Other municipalities choose to link the variable portion to water consumption . A typical ordinance, for example, includes a fixed annual fee of just over 44 euros for all households and a variable component of 0,35 euros per cubic meter consumed annually. In a household with moderate consumption, the bill would increase from just over 57 euros to around 88 euros, while in homes with high consumption it could exceed 100 euros per year.
Social bonuses: significant reductions for vulnerable households and large families
To mitigate the impact of the new tax, many local councils have designed a broad scheme of social benefits , especially aimed at people at risk of exclusion and families with lower economic capacity.
In Santander , the ordinance includes a 90% reduction in the total fee for recipients of the Minimum Living Income and the Basic Social Income of Cantabria . According to the mayor's office, this discount aims to minimize the impact of the new rate on low-income households by significantly reducing their annual expenses.
In Cádiz , the approach is similar: the municipal ordinance provides for a 90% reduction in the rate for taxpayers at risk of social exclusion who receive the Minimum Living Income or the Minimum Insertion Income, applicable to the residential property tax . In addition, discounts are introduced for large families , ranging from 15% to 60% off the residential tax, depending on the property's cadastral value and the family's category .
In municipalities that link the variable part to water consumption, reductions of around 20% of the rate are also considered for families with incomes below certain thresholds (for example, 21.000 euros per year ), so that the impact is modulated according to available income.
In addition, there are cases where discounts of 50% or 95% are proposed for households that do not exceed certain income limits calculated from indicators such as the IRSC and the number of registered people, with the possibility that retirees and pensioners can maintain these reductions without needing to renew them every year unless there are changes in their situation.
Environmental bonuses: recycle more to pay less
In addition to social criteria, the new ordinances incorporate environmental incentives designed to reward recycling and proper waste separation. The message is clear: those who make the most effort to separate their waste, pay less.
In Santander , a 30% discount on the variable portion of household water bills is planned for homes that participate in municipal programs and activities focused on waste separation, reuse, and recycling. During the first year of implementation, residents simply need to commit to following the recommendations and best practices disseminated by the City Council to qualify for the discount.
The process can be completed online through the designated website, where interested parties must register in a census of good environmental practices , provide basic information about their home, and accept a declaration authorizing the sending of information and committing to follow municipal guidelines. The deadline to apply for this discount has been exceptionally extended to February 28th to give residents time to gather information and complete the application.
In Bilbao , the ordinance links discounts to the use of the specific organic waste containers (the brown bin). For residential properties, only those registered in the organic waste program can access discounts on the specific component of the fee. During the first year, a 10% discount has been made available to households that registered in the program before January 1st, and from the following year onwards, this will increase to 20% for those who can demonstrate a minimum of 36 weeks of effective use of these containers.
In municipalities that have opted for payment models linked to the organic waste container, the variable portion of the fee depends directly on the number of times the container is opened annually . The rates can range from €0 for fewer than ten openings to amounts exceeding €100 when more than forty-eight openings are made per year, meaning that daily waste separation habits have a direct impact on the bill.
Bonuses for self-composting are also being extended : in some localities a 100% discount of the variable part is granted to those who prove that they manage the organic fraction in their own home through composting, after a responsible declaration and with the possibility of verification by the city council.
Impact on businesses and economic activities: new rules and conditional discounts
The new waste tax does not only affect homes ; it also introduces important changes for commercial, industrial and service premises , which usually face increases linked to their activity and surface area.
In Bilbao , the specific component of the tax for non-residential properties is calculated by combining the cadastral value with the type of activity and the square footage . Certain facilities, such as stadiums, auditoriums, libraries, museums, art centers, or places of worship, can benefit from a 50% reduction in this specific component, given that their impact on waste generation is considered different from that of other economic activities.
In Santander , the ordinance incorporates a commercial fee structure where the rate depends on the economic sector and the size of the premises. It also includes discounts ranging from approximately 15% to 30% for businesses that participate in recycling and reuse programs or that deliver certain types of waste to authorized waste management companies. The City Council emphasizes that these measures aim to recognize the efforts of those who improve their environmental management.
In Cádiz , in addition to reductions for vulnerable and large families, specific incentives are planned for the business sector. Food distribution and catering companies can qualify for a 25% discount on their fees if they implement food waste management systems in collaboration with non-profit social economy entities. A 10% discount is also planned for businesses that demonstrate their contribution to waste reduction , including bars, restaurants, hotels, hospitals, educational centers, industries, and administrative buildings.
In any case, the bonuses aimed at non-residential uses usually require a declaration of responsibility and the provision of supporting documentation through the municipal electronic office , with specific application deadlines that, in some cases, end at the end of January.
Implementation schedule, deadlines and notifications to taxpayers
The rollout of the new waste tax is accompanied by information campaigns and a schedule of deadlines to make it easier for residents and businesses to take advantage of all possible discounts.
In Santander , the fee came into effect on January 1st , and the City Council has launched a campaign with brochures, talks at community centers , and a dedicated website to explain the ordinance and help residents process their applications for discounts. Registration for the environmental best practices program, which grants access to a 30% discount on the variable portion of the fee, is open until February 28th through the designated municipal website.
Furthermore, the Santander City Council has announced that, starting in May , individual notifications will be sent to the registered owners of properties, detailing the tax amount and payment period. This information will also be available to taxpayers on the Electronic Office website and the Virtual Tax Office, with the expectation that direct debit payments will be available starting in subsequent years.
In other cities, such as Cádiz , the new tax was approved in an extraordinary plenary session , alongside other measures such as the implementation of low-emission zones. The local government maintains that it has chosen the "least burdensome" solution for citizens, although the opposition has criticized the potential impact on small businesses and the lack of visible improvements to the service, such as the renewal of containers or collection trucks.
In municipalities transitioning to systems where the variable component depends on the use of the organic waste container , the first year is dedicated to measuring behavior (for example, by counting container openings throughout the year), and the actual collection of this variable component is carried over to the following year. In some cases , the variable component for the previous year has even been waived to facilitate the adaptation to the new model.
The new waste management tax is bringing about a profound restructuring of the bills that households and businesses pay for waste disposal. Although in many cities it involves increases compared to previous models, local councils are establishing networks of social and environmental incentives to protect vulnerable groups and reward responsible behavior, in an attempt to balance legal compliance, the economic sustainability of the service, and the promotion of more sustainable practices in daily life.
