In 2025, Madrid will implement a new mandatory waste collection tax. Its purpose is to cover the actual costs of collecting and treating urban waste, in line with Law 7/2022 on waste and contaminated soils and European circular economy directives.
1. What is the new waste collection tax in Madrid and who does it apply to?
- Mandatory: All properties located in municipalities with more than 5,000 inhabitants must pay it.
- Applies to: Residential dwellings and commercial premises.
- Objective: To finance the collection, transport, and treatment of urban waste, while encouraging waste reduction and proper separation.
-
2. Structure of the tax
The new tax consists of two main components: a fixed base rate and a variable rate. It is charged annually, with discounts available for large families, low-income households, and owners of vacant properties or premises. The aim is to adapt the cost to individual circumstances and promote fair and sustainable waste management.
2.1 Base Rate
- For commercial premises:
The base rate is determined by bands according to the cadastral value of the premises. The fee varies depending on the cadastral classification (commercial, industrial, offices, etc.), distinguishing between different types of economic activity.
If the premises remain vacant or unused during the fiscal year, only the base rate is applied, and reductions may be requested with documentary proof of non-use. - For residential dwellings:
The base rate is determined by bands according to the cadastral value of the dwelling.
The amount is a fixed annual cost, regardless of occupancy or number of residents.
For vacant or unoccupied dwellings during the fiscal year, a reduction may be requested if documentary proof of non-occupation is provided.
The administration publishes the bands and corresponding fees annually based on cadastral value.
2.2 Variable Rate (Based on waste generation)
The variable rate accounts for approximately 19% of the total tax.
It is adjusted with a correction coefficient that reflects the quality of waste separation in each neighborhood. This factor ranges between 0.60 and 2.00, incentivizing improved recycling performance.
3. How is the new waste tax in Madrid calculated?
The calculation is based on the sum of two components:
- Base Rate (81%)
Example (annual values for dwellings):- Up to €42,800 cadastral value: €34.53
- €42,800.01 – €52,900: €47.76
- €52,900.01 – €60,900: €56.85
- …and so on, increasing as cadastral value rises.
- Variable Rate (19%)
Based on kilograms of waste generated per person per year and adjusted by the quality coefficient:- Up to 130 kg: €6.00
- 130.01 – 165 kg: €7.72
- 165.01 – 200 kg: €9.48
- 200.01 – 500 kg: €23.99
- More than 500 kg: €41.52
For dwellings: The calculation uses the kilograms of waste generated per person per year in the neighborhood where the property is located.
For commercial premises: It is based on the tons of waste generated by the type of economic activity within homogeneous zones (groups of districts with similar characteristics).
This data is obtained from official reports published quarterly, which track the waste generated in the previous year.
The final amount of the variable rate is determined by multiplying the waste generation fee by the quality coefficient of separation in the neighborhood. This rewards areas with higher recycling performance and penalizes those with poorer results.
4. Operational impact
- Represents a new fixed annual expense, adding to the overall cost structure.
- May increase financial pressure on property owners with multiple assets, especially in neighborhoods with higher coefficients.
- Requires treasury planning and price structure adjustments to preserve margins.
- Exemptions and reductions exist for specific cases: garages, storage rooms, vacant lots, vulnerable households, and vacant dwellings only pay the fixed fee.
5. Importance of operational control
The reality is clear: those who manage their resources more effectively and adapt quickly to new regulations will gain a competitive advantage in 2025 and beyond.
- Centralized monitoring helps detect duplicate payments or incorrect charges.
- Identifying consumption patterns allows businesses to reduce waste and emissions—directly lowering tax costs.
This is where Polaroo comes in: by digitalizing and centralizing this control, Polaroo transforms compliance into a strategic advantage.
6. Operational Strategies to Minimize the Impact of the New Tax
- Monitor and Audit Your Consumption Regularly
The key is to understand exactly what you are paying and why.- Are the amounts of the new tax calculated correctly?
- Do the charges reflect your actual waste generation?
With Polaroo, you can track all these expenses, validate calculations, and run customized projections to anticipate scenarios and detect overcharges.
- Outsource Issue Management and Claims
Handling billing errors, ownership changes, or claims consumes valuable time.
Polaroo manages these processes for you, ensuring that any errors in the application of the new waste tax or other utility services are handled by experts on your behalf. - Turn Waste Reduction into a KPI
For businesses, the waste tax is not just an expense—it is now a performance metric.
By leveraging Polaroo’s data insights, you can measure and compare reductions in consumption, aligning sustainability strategies with real costs reflected in invoices.
Conclusion
Madrid’s new waste tax in 2025 compels property managers and businesses to rethink how they consume and manage basic services. What may seem like just another tax can actually become a driver of efficiency and sustainability.
With solutions like Polaroo, supply management evolves from being a burden into a strategic advantage, helping you not only control costs but also reduce your environmental footprint, improve KPIs, and ensure that every euro paid is fully justified.