Our wallets will notice the most important price increases

Traditionally, with the arrival of a new year, a lot changes as far as the wallet and purse are concerned. The main taxes of our cities are revised and prices tend to be revalued taking into account the inflation of the year.

* Electricity and gas will reclaim pre-crisis VAT

From January 11, VAT on electricity will go from the current 5% to 10%, still far from the 21% it was before the Spanish government’s anti-crisis measures were adopted.

The VAT on gas will in turn also increase, but gradually: from the current 10% to 21% between the months of January and April.

* The water, emerging

The Bizkaia Water Consortium will increase the water price by 9%, which means an average increase of 4.5 euros per quarterly bill for the residents of Biscay.

* Municipal taxes

Each municipal council has fully decided what will happen to municipal taxes in 2024. The CAV capitals have already worked out what these rates will look like:

– Bilbao: After keeping them frozen for three years, Bilbao has decided to increase municipal taxes by 3% overall. For example, the IBI will increase by an average of one euro per month. As a novelty, this municipal council will apply a surcharge of 25% for vacant houses on tourist apartments.

-Donostia: In the capital Gipuzkoa, water, sanitation and waste will become more expensive by 5%. The IBI and motor vehicle tax will also increase (4%) and the OTA will become 5% more expensive. In addition, there will be a 150% surcharge on vacant homes via the IBI.

– Gasteiz: It is the only capital of Euskadi that will not increase taxes. Although the municipal council has proposed to increase this by 3%, it has not received enough support to implement the increase, so it remains frozen.

*Highways, also more expensive

-Tolls on state highways – including AP-68 – under administrative concession will also be more expensive in 2024; from January 1, they will increase between 5 and 6.65%, depending on the specific conditions of each concession. In the case of AP-68 this will be 5.12%.

* The great fortunes, taxed

The new tax on large fortunes provides for a tax of 1.5% in Bizkaia and 1.7% in Álava and Gipuzkoa for assets between 3.2 and 6.4 million euros. Assets between 6.4 and 12.8 million pay 1.75% in Bizkaia, and 2.1% in Gipuzkoa and Álava. If the fortune is between 12.8 and 14.5 million, the percentage will be 2% in Bizkaia and 2.5% in Álava and Gipuzkoa. Of 14.5 million, 3.5% is paid in the three areas.

* Expansion for basic foodstuffs

There is an extension, until June, of the 0% VAT on basic foodstuffs such as bread, flour, milk, cheese, eggs, fruit, vegetables, legumes, potatoes and grains, and 5% on pasta and oils.