Since 2020, Alicante’s municipalities have kept rolling out measures to support households, self-employed workers, and small businesses through a tough economic era. Recovery efforts continue into the new year as councils unveil fresh initiative packages. Direct relief reaches families facing high borrowing costs and tax pauses or price spikes. The precautions share common goals, though each locality adds its own spin: conservative towns emphasize economy and trade, while progressive areas lean toward more social support.
Rising inflation remains the top worry for families, self-employed individuals, and SMEs. Even as improvements appear on the horizon, prices, especially in everyday shopping, keep climbing. City councils closest to residents have reaffirmed measures to weather the storm and shield vulnerable households.
In Alicante, the administration led by the PP with backing from Ciudadanos announced a tax relief plan designed to help confront the crisis, spur economic activity, and support job creation and social welfare. Proposals include a 95% reduction on capital gains in inheritances between close relatives, a subsidy on business transfers, and a lowered Economic Activity Tax (IAE) for companies with annual invoicing under one million euros engaged in activities of declared special or municipal interest. There will also be reductions for businesses that use or produce renewable energy, and changes to the ICIO regulation to adjust payment scales. The plan includes a subsidy program for taxi fleet upgrades, incentives for green roofs and vertical gardens, and conservation efforts for protected buildings. The IBI deduction would be limited to very old businesses. All this builds on existing measures that help SMEs, micro-SMEs, small self-employed professionals, and freelancers cope with the energy crisis.
The Elche City Council, led by the PSOE, allocated 7.5 million euros to mitigate the economic fallout from the war in Ukraine. Exceptional steps include extending the suspension of table and chair fees and terraces for the hotel and restaurant sector for the fourth consecutive time, along with targeted energy discounts for families facing rising energy costs. The Elche consortium will continue to assist with IBI, electricity, and gas payments. Given rising expenses, including electricity, the city plans to widen the social aid budget that had been reduced, drawing on remaining funds.
water and waste
In Benidorm, under the PP administration, the City Council approved a plan to raise waste management and water treatment costs, while continuing to honor consumer bonds that benefit more than 45,000 residents in recent editions, without creating pressure on households or businesses. Additional measures promote public transport use, including taxi and bus services, aimed at aiding the tourism and hospitality sectors since the pandemic.
Alcoy, governed by a socialist administration, has also launched steps to ease the strain on families and local enterprises. For the new year, all rates and public prices will be frozen. An extraordinary provision allocates up to 300 euros for families earning below the inter-professional minimum wage, supported by a 300,000-euro economic item. The social assistance budget will rise by 15%, and support for small businesses and the self-employed will continue to ease operational pressures.
The city of Torrevieja, under PP leadership, continues to build on pandemic-era measures rather than launching many new policy schemes. Taxes on occupying public streets, including terraces for bars and restaurants, and street markets, remain suspended. Torrevieja pioneered a consumer bonus to boost shopping in local stores and is already running its sixth campaign. The council also earmarks one million euros for distributing non-perishable food and hygiene products to the most vulnerable families, while Hidraqua offers bonuses to customers struggling to pay their bills.
Elda, controlled by PSOE, decided to freeze taxes and wages through 2023. The freeze covers IBI, ICIO, rates, and public prices for sports facilities and municipal pools. For the first half of the year, the occupation tax on public roads used by terraces was suspended. This package is complemented by the energy bonus, which directs 600,000 euros to SMEs, the self-employed, and businesses to counter higher electricity, gas, and fuel costs.
Officials stress the collaboration of local representatives in sharing these measures and shaping future policies. Acknowledgments emphasize the role of community voices in steering municipal relief programs.
Generalitat and the State Legislature have also taken steps to shield Valencian families from inflation. A decree temporarily extended the 10% reduction in public tariffs and prices until August 31, and prolonged the suspension of the cleaning fee paid by taxpayers until July 31. The Botànic government under Ximo Puig will add support for lower public transport costs to ease travel for residents, especially as fuel prices trend down. New tax incentives are being introduced to empower economic activities in municipalities at risk of depopulation, to attract and retain businesses, and to protect historic centers and their architecture.
To support investment, the Generalitat amended the tax treatment of business real estate transactions, cutting the transfer tax rate from the standard 10% to a favorable 4% for company headquarters and business centers. A 30% bonus applies to real estate purchases for the same purpose. In early 2025, the Alicante Provincial Council will mobilize an emergency fund of 115 million euros to fight energy price rises and the cost of living. The council head announced a new consumer coupon campaign worth 2 million euros, with energy aid rising from 9 million to 15 million. A special 5 million-euro scheme is slated to help self-employed pay rent for their workplaces, benefiting SMEs and micro-SMEs. The emergency fund will also support municipalities with social expenditures linked to the COVID-19 crisis and will increase from 9 million to 15 million in the current year. The Plan + Cerca de la Diputación will be strengthened to 40 million euros, quadrupling the 2022 level. The 115 million euro extraordinary fund is part of the Provincial Assembly’s broader relief efforts, with consumer bonds remaining a popular tool to stimulate local shopping and support traditional stores.