Starting April 10, 2025, the new trash fee in Madrid came into effect. This mandatory tax applies to all municipalities with more than 5,000 inhabitants, in compliance with Law 7/2022 on waste and contaminated soils. The new regulation aims to promote a circular economy and achieve recycling targets of 55% by 2025 and 65% by 2035.

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What is the new trash fee?

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The new trash fee consists of two components:

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• Basic rate (81%): this is calculated based on the property's cadastral value.
• Variable rate (19%): this depends on the amount of waste generated and the recycling level in each neighborhood, according to data from the Valdemingómez Technological Park.

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Thus, the average annual cost in Madrid is €140 per household and €310 per commercial property. However, the exact amount varies by neighborhood, ranging from €45 to €574 annually.

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Who must pay the fee?

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This new fee is charged to the property owner, but it can be passed on to the tenant if the lease agreement stipulates it. Additionally, some properties are exempt from paying:

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• Garages and storage rooms associated with a residence.
• Vacant lots and buildings in a state of ruin.
• Vacant homes and inactive properties, which will only pay the basic rate, as long as they prove their status annually.

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Discounts and reductions

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Despite being a mandatory fee, there are some discounts and reductions available that can be requested through the Portal del Contribuyente del Ayuntamiento de Madrid (City of Madrid’s Taxpayer Portal). So, who can apply for these discounts?

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• Large families: a discount similar to the one for the Property Tax (IBI), applied automatically if the owner is the one paying. If the tenant is paying, they must request it before March 1st of the corresponding year.
• People in vulnerable situations: a 100% reduction for beneficiaries of the Minimum Income Guarantee or the Minimum Insertion Income of the Community of Madrid.
• Recycling participation: some municipalities offer discounts for those who use organic waste collection systems.

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How is payment managed?

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In 2025, taxpayers will receive an individualized notification with the fee settlement and will have up to two months to make the payment. Starting in 2026, the fee will be managed through a registration system, similar to the IBI, and payment can be split.

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Comparison with other municipalities

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Although this fee is mandatory, each municipality can establish its own calculation system and rates. For example, in Alcorcón, different discounts have been designed based on the number of residents, as well as the use of the brown bin for organic waste. In other municipalities, such as Fuenlabrada, a 30% discount is offered to those who register in the clean points census.

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Additional information

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To calculate specific rates by municipality and obtain more information about the new trash fee in Madrid, we recommend visiting the Portal del Contribuyente del Ayuntamiento de Madrid (City of Madrid’s Taxpayer Portal), where you can find all the details.

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