Madrid’s new garbage tax faces its decisive days in court. In approximately one week, the Madrid High Court of Justice (TSJM) will rule on the appeal filed by the Spanish Association of Tax Advisors (Aedaf) against the ordinance that created the City Council’s new Waste Management Tax, introduced in 2025, which has suddenly increased the cost of garbage collection for hundreds of thousands of households and businesses. At stake are nearly €300 million and the possibility that the tax will be overturned, as happened in the past with the municipal capital gains tax.
Unlike individual claims against specific assessments, Aedaf’s appeal directly challenges tax ordinance 8/2024, which regulates the tax, i.e., the municipal rule that created it. This has allowed for a faster process: the proceedings are already in the conclusion phase, and all that remains is the TSJM ruling, expected this February. The core of the legal debate is whether the calculation method chosen by the City Council —where 81% of the fee depends on the cadastral value of the property—respects the principle of “payment by generation” required by Law 7/2022: that those who generate more waste pay more, not those who live in a more expensive house.
Why is it called a “tax hike” and how can it be appealed?
Garbage strike in November 2013 | Editorial credit: Pablo Blazquez Dominguez/Getty Images
Since September 1, 2025, the new garbage tax has been charged separately from the Real Estate Tax (IBI) and has led to significant increases in waste bills. It now averages around €140 per year for homes and around €310 for businesses, with some cases exceeding €400 or €450 depending on the cadastral value. Neighborhood groups, consumer associations, and opposition parties consider it “unfair, disproportionate, and lacking in transparency,” as it does not take into account factors such as the number of people living in a home or the actual use of the property. The City Council, for its part, argues that the tax is mandatory under state law, that it must cover 100% of the cost of waste collection and treatment, and that discounts have been introduced for low incomes and large families.
If the TSJM declares the ordinance null and void, a scenario similar to that of the municipal capital gains tax would arise: the tax could no longer be collected as it is currently designed, and the City Council would have to redraft it to adapt it to the court’s criteria. However, the refund of the money will not be automatic for everyone. Aedaf experts point out that only those who have appealed their settlement within one month of notification, either through an appeal for reversal before the Madrid Tax Agency or an economic-administrative claim before the TEAMM, will be entitled to a refund.
For this reason, in recent months there has been a proliferation of platforms, from private agencies to neighborhood associations and parties such as Más Madrid, offering forms and guides for challenging the receipt, often recommending paying first and claiming later to avoid late payment penalties and possible seizures. If the ruling is favorable to the appellants, their money could be refunded, while the rest of the taxpayers would be left without that avenue for a refund.
In parallel with the legal battle, José Luis Martínez-Almeida’s government has announced adjustments to the tax rate for 2026, with the stated aim of “providing greater equity and legal certainty” to the calculation. Among the changes under consideration are a review of the weighting of the cadastral value, the introduction of more brackets based on the use of the property, and the extension of rebates for certain groups. However, the City Council insists that the tax itself will not disappear, because the law requires all municipalities with more than 5,000 inhabitants to implement a specific tax to finance waste management.