The recent implementation of the Urban Waste Management Tax (TGR) in Madrid, as of September 2025, has generated considerable controversy and confusion, especially in the rental market. Although the obligation to pay this fee initially falls on the landlord before the City Council, the law allows this cost to be passed on to the tenant, provided that certain conditions are met.
The GRT is a compulsory tax for municipalities with more than 5,000 inhabitants, the purpose of which is to cover the real cost of the garbage collection service under the polluter pays principle.
Legally, and for the purposes of the local administration, the substitute taxpayer and main party obliged to pay the Waste Tax is the owner of the property (or the cadastral titleholder). The Madrid City Council will always demand payment and liability for the debt (including surcharges) from the owner of the property, regardless of whether the property is rented or not.
In order for the landlord to legally require the tenant to assume the cost of the TGR, there must be an express written agreement in the lease contract that includes this obligation. The clause must clearly identify the expense to be charged (the TGR), and preferably, its amount or method of calculation, ensuring transparency.
For leases signed before the entry into force of the GRT (September 2025) and which did not contemplate the passing on of any tax or fee, the landlord cannot impose the payment of the new fee to the tenant, since it would be unilaterally modifying the lease. The LAU (Ley de Arrendamientos Urbanos) protects the terms of existing leases.
Claiming payment from the City Hall
Madrid residents can now appeal the new garbage tax after starting to receive payment receipts this month. The City Hall requires that the bill be paid first before any claim can be filed. To facilitate the process, Más Madrid has launched a free form that allows the appeal to be processed before the Municipal Court without the need for a lawyer. The document automatically generates a document that can be filed at the City Hall registry or through the electronic headquarters, attaching the proof of payment.
Claims may be filed during the voluntary payment period and up to one month thereafter. While the consistory defends that the tax complies with European regulations and promotes sustainability, the OCU and part of the opposition criticize its lack of progressiveness and the lack of incentives for recycling, pointing out that it penalizes all households equally.