Garbage Tax in Madrid 2025 (Tasa de Basuras): Who Pays, How Much and How to Pay It
From 2025, the Madrid City Council has introduced a new garbage tax, officially known as the Tasa de Gestión de Residuos (TGR) or Waste Management Fee for the collection, transport and management of waste generated.
This municipal fee applies to all homes and commercial properties to cover the real cost of waste collection and treatment. It replaces the old system funded through general municipal taxes and aligns with Spain’s Law 7/2022↗ on Waste and Circular Economy.
In general, the more waste a neighborhood generates and based on its recycling habits, the higher the tax.
Key Takeaways
- The new garbage tax in Madrid (Tasa de Residuos / Waste Management Fee) marks a shift toward a “polluter pays” model.
- While it may come as an extra cost, understanding who pays, how it’s calculated and how to apply for discounts can help you manage it effectively.
- The fee depends on the property value and neighbourhood, you can also get deductions depending on your family and personal situation
- If you’re renting or letting out a property, this is also a good time to review your lease and decide how to share this new expense fairly.
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Who Has to Pay the Tax: Landlord or Tenant?
This is one of the most searched questions: “Who pays the garbage tax in Madrid, the owner or the tenant?”
- The property owner (propietario) is the person legally responsible for paying the Tax.
- However, the owner can pass on (repercutir) the amount to the tenant if this is stated in the rental agreement.
- If the tax is not paid, the City Council will always claim payment from the owner, not from the tenant.
How Is the Garbage Tax Calculated and How Much Will I Pay?
Let's get to the technicality of it all and believe it or not, there is a forumla used by Madrid City Council:
TGR = Basic Rate (TB) + Generation Rate (TG) × Recycling Coefficient (CCS)
| Component | Meaning | What It Depends On |
|---|---|---|
| Basic Rate (TB) | Fixed amount per property | Based on cadastral value (valor catastral) |
| Generation Rate (TG) | Variable component | Based on estimated waste generation per neighborhood |
| Recycling Coefficient (CCS) | Adjustment factor | Depends on how well residents separate waste |
So essentially, if you live in a neighborhood having a low recycling rate or higher property value, you’ll end up paying more as garbage collection tax (TGR).
Properties that are declared vacant or inactive commercial spaces pay only the Basic Rate, provided that the related declaration is filed before the 1st of March of each year.
The Agencia Tributaria has put out a simulator that allows you to calculate the amout you will pay, including any deductions, check out the link to access this tool↗.
When and How Can You Pay the Garbage Tax?
Starting September 8th through November, notices are being sent to individuals by the city council.
You can pay:
- Online via the Portal del Contribuyente Ayuntamiento de Madrid↗
- At authorized banks during the voluntary payment period indicated mentioned in your letter
- From 2026 onward, the tax will be included in the general municipal tax register (padrón), and you’ll receive a collective annual notice.
Available Discounts and Exemptions
Madrid offers several reductions depending on your situation:
Families with 3 or more Children (with status of Familia Numerosa)
- Between 10% and 90% discount depending on the property value and category (general or special)
- Applies to your main residence
- May be applied automatically if you’re registered in the home
Vulnerable Households (Minimum Basic Income IMV or Regional Minimum Income RMI)
100% exemption is applicable for those receiving the Minimum Vital Income (IMV) or Regional Minimum Income (RMI), if registered at the address
Empty Homes or Inactive Commercial Premises
Empty home or inactive commercial properties pay only the Basic Rate (TB), provided they declare vacancy or inactivity by March 1st of the same year
What to Do When You Receive the TGR Notice?
- First, Check your notification in your Tax Folder Carpeta Tributaria↗
- Verify your data: Address, property cadastral value and tax calculated fee.
- Apply for reductions if you qualify for family or vulnerability discounts.
- Submit a declaration if your property is empty or inactive (before March 1st).
- Pay within the voluntary period to avoid late penalties as described in above
If you disagree, you can file an administrative appeal ( recurso de reposición) as stated in your notice.
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Frequently Asked Questions
Gerard B.
An expat who's done it, so you don't have to!
After spending years in Spain and thousands of euros on lawyers, tax advisors, and residency applications, only to realize that doing it yourself is often easier, cheaper, and just as effective. Gerard is an expat on a mission to help others avoid the same costly mistakes. By creating LiveLoveSpain, Gerard aims to share first-hand experiences, practical tips, and plenty of "Why didn't anyone tell me this?!" moments. Whether it's filing taxes, understanding visas, or just mastering the art of the sobremesa, he's here to help fellow expats integrate seamlessly without breaking the bank.