La Massana Parish Council Approves 2025 Budget with €1.89M Surplus from Surging Property Taxes

La Massana parish council approved its 2025 budget settlement on Thursday, recording a €1.89 million surplus driven by robust property transfer tax revenues of €3.5 million—an 86% increase from €1.87 million in 2024—amid strong sales of new and existing homes.

Total revenues reached €23.5 million, including €21.7 million in operating funds and €1.8 million in capital receipts, against net expenses of €21.6 million after financial costs and assets. Operating expenses stood at €13.4 million, while capital outlays dropped 40% to €6.3 million from €10.4 million the previous year, mainly due to forgoing €3.3 million in land acquisitions. Overall spending fell 4.4%. Construction permit fees fell €1.2 million to €1 million as quotas limited approvals, but this was balanced by €1.4 million more from property and rental income taxes following rate hikes. Property transfer taxes alone accounted for about 15% of total revenues, far exceeding the council's conservative €1.3 million projection.

Finance councillor Agustí Garcia attributed the surge to heightened transaction volumes, noting collections nearly doubled prior-year figures. Cònsol Major Eva Sansa called the result satisfactory, pointing to the parish's appeal and completions of older projects alongside new developments. The budget passed with majority support and opposition abstentions.

Personnel costs rose from €4.9 million to €5.3 million, covering seven new hires, salary increases, interim staff regularizations, and inflation adjustments. Total debt remained at €21.5 million—mostly guarantees for entities like SETAP 365 and EMAP S.A.—at around 99-100% of the legal limit under revised European regulations, which now require such backing.

The council exempted forestry and agricultural buildings from construction quotas, as Cònsol Menor Roger Fité stated these avoid residential pressure and high water demands while aiding primary sector priorities. In a recent interview, Fité highlighted quotas as the mandate's key achievement, curbing speculative excess and unchecked growth nationwide. They have slowed approvals after an initial rush, with quotas depleted in areas like Aldosa but available elsewhere, enabling infrastructure catch-up on roads, water, and utilities. Fité described the measures as an "ABS" brake, fostering sustainable planning aligned with projections of around 20,000 residents in 15 years.

The council also approved three final partial POUP updates, including raising mandatory land cessions to 15%, cutting provisional structures to 75 m², and banning outdoor storage. Ongoing participatory processes for broader revisions emphasize compact growth from well-serviced centers, height harmonization to preserve visual harmony, and national coordination on population limits. Sansa outlined future sustainability moves: higher taxes on second homes, fees on commercial spaces in residences, and steeper high-water-use charges, while protecting ordinary residents. Garcia urged cost-benefit reviews for underperforming services. Additional approvals covered signage updates for industrial sites and a land cession for pedestrian improvements.