Estepona achieves historic surplus of over €40 million in 2025 budget

Estepona’s local council has sealed an impressive financial milestone by closing the 2025 budget with a surplus of €40.29 million. Bank balances now exceeded €90 million at year-end, showing a major U-turn with solid management after fully clearing a €300 million inherited debt.

Debt elimination unlocks major tax cuts

Councillors paid off the remaining debt ahead of schedule in 2025, including an early repayment of €25.37 million that saved more than €3 million in interest. The council’s debt stood at zero on December 31, marking an impressive achievement. Residents now benefit from the largest cumulative IBI property tax reduction in the town’s history, reaching 50 per cent.

Surplus funds increase community support and infrastructure

Authorities plan to channel the surplus into strengthened social aid programmes, improved public services, and upgraded facilities across neighbourhoods and outlying areas. Maintaining productive investment remains a priority to sustain momentum in local development.

Positive results are enabling continuation of ongoing works valued at €14.07 million, drawn from treasury remnants. Initiatives include completing the Central Park Boulevard; revitalising peripheral zones such as Retamar and Llanos de Guadalmansa; fresh road resurfacing schemes; park improvements; energy efficiency upgrades; coastal path extensions; and expanded underground parking networks.

Current investments total €27.7 million & strong liquidity contrasts with past struggles

These funds complement the municipal investment plan for the ongoing year, amounting to €27.7 million. Highlights feature progress on the Carmen Church area car park and Central Park Boulevard developments.

Treasury holdings reached over €90.1 million by late 2025. Deputy Mayor for Economic Affairs Ana Vilaseca said that in 2011, when the current administration took office, funds barely covered summer payrolls, a major difference from today’s healthy position.

Future plans make sure of continued stability

A new economic plan, endorsed by internal auditors, projects sustained positive trends in revenue and expenditure. Authorities aim to keep supplier payment periods below 30 days while getting budgetary surpluses through 2026 and 2027. Despite central government restrictions on surplus usage, Estepona continues advocating for greater local flexibility via the Spanish Federation of Municipalities and Provinces.

Recent major projects go to show long-term progress, including the district hospital, athletics stadium, fairgrounds, Felipe VI Auditorium, historic centre pedestrianisation, new seafront promenade, coastal path, town hall building, water reservoir, and climbing wall.