Local governments subsidise the Spanish property tax (IBI, in its Spanish acronym) fee for property owners who legally hold the large family status.
Administrative Court number 3 in Madrid has ruled in favour of a man who is the father of three daughters and who was denied the discount because he was separated and did not live in the same household as his daughters. The definition of large family includes separated fathers or mothers, even if they are in different family units, provided that there is financial dependence. The ruling therefore found that there was discrimination and disproportionate unequal treatment.
The Municipal Economic-Administrative Court of Madrid rejected the discount as the property was not «intended exclusively to satisfy the permanent housing needs of the taxpayer and their family». Following the ruling, the local government must apply the requested benefit as the Spanish Constitution prevents certain types of large families from being excluded from the discount, according to the judge. The tax cut recognises the greater financial effort involved in having three or more children.
In the case at hand, as the man had fulfilled the obligation to pay the monthly allowance imposed in the divorce sentence for the maintenance of his children, the judge ruled that he was discriminated against because he was divorced.
Miguel Morillon
Lawyer of the Madrid Bar Association
