The annulment of the 2025 garbage tax has left a key loose end: what happens to all Madrid residents who paid the bill without contesting it and now want to take advantage of the annulment? The short answer is that they still have time to act, but they must do so with a certain degree of order and legal prudence.
The High Court of Justice of Madrid has declared the 2025 garbage tax null and void, but the fine print remains to be seen—that is, whether the nullification will have general effects for all taxpayers or whether it will be limited to the specific cases that were appealed, as happened in the past with some capital gains tax rulings. Until that is clarified, we must distinguish between two groups: those who did file an appeal at the time and those who paid and did not file a claim.
For the former, the recommendation is to wait for the full publication of the ruling and for it to become final (the City Council may file an appeal) to see how far its effects extend. For the latter, the key is to initiate a nullity proceeding now so as not to be left out if the court limits the scope of its decision.
If you didn’t file a claim in 2025: why you can still take action
The big question: “Can I file a claim now if I paid in 2025 and did nothing?” The position of legal firms like Legálitas is clear: yes, but you must file an action for nullity under Article 217 of the General Tax Law.
Experience with the municipal capital gains tax showed that some claims were upheld precisely because they were filed before the definitive criteria were established regarding when the effects of the nullity would apply. In other words: taking action now helps avoid closing off potential avenues if the court later decides to limit the effects only to those who reacted in time.
Step by step: how those who did nothing can file a claim now
According to Legálitas’ guidelines, taxpayers who paid the 2025 fee and did not appeal it can follow this basic procedure:
- Identify the act being challenged
- Locate the 2025 garbage tax bill or assessment issued to you by the City Council.
- Make a note of the reference number, the date of notification/collection, and any identifying information that appears on the document.
- Filing a request for nullity as a matter of law
- You must contact the body that issued the decision, that is, the Madrid City Council itself (the Finance Department or whichever department is listed on the bill).
- In the application, you must:
- File the claim as soon as possible
- It is recommended not to wait for the full publication of the ruling to file this request, precisely to “keep all options open.”
- The logic is the same as in some capital gains tax cases: there were taxpayers whose claims were upheld because they had filed them before a restrictive criterion regarding the effects of the nullity was established.
- Keep your receipt and wait for developments
- Keep proof of filing (registration number, date, stamped copy, or electronic receipt).
- From there, we’ll have to wait and see:
What can those who did appeal at the time expect?
If you have already filed an appeal against the 2025 fee (for example, an appeal for reconsideration or an economic-administrative claim), Legálitas’ advice is more conservative: wait.
Specifically, to see whether or not the ruling limits the effects of the nullity. In addition to verifying whether the ruling has general effects or applies only to the appellants, and waiting for the ruling to become final, bearing in mind that the City Council may attempt to take the matter to the Supreme Court through a cassation appeal.
And what about the 2026 garbage tax?
If the ordinance that established the 2025 fee is ultimately annulled, the City Council will be required to pass a new ordinance. This means we’ll need to pay close attention to how it’s drafted, what criteria it uses, and whether or not it corrects the flaws that led to the previous one being overturned.
If the new regulation runs into legal problems again, the advice is to consider appealing once more. Because what this case has shown is that, when an ordinance is poorly drafted from the start, the courts can ultimately overturn it.
