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Málaga Leads Spain’s Tax Growth In 2025

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Málaga’s skyline reflects a city in transition. Credit: Marcin Jucha via Canva.com

Malaga has just pulled off something that you expected, and it didn’t involve property sales, beaches, or paella. It outperformed both Madrid and Barcelona, and one of Spain’s most interesting economic indicators is tax collection.  With over €2.19 billion collected in just four months, the province is now leading the country in tax revenue growth by more than double the national average. 

The high cost of growth

Between January and April 2025, the Province collected €2.9 billion in taxes, representing a 20.8% increase compared to the same period last year. However, that growth rarely comes free; the rising tax revenue can entail more jobs, healthier economies, and a stronger business overall. 

It can also mean higher bills, more inflated prices, and a tax base that is working harder to keep up. This can be a spike win for everyone or an indication that life will get a bit more expensive, depending on which aisle you reside in. 

For residents, it seems the city is racing ahead while daily costs are climbing, including bills, groceries, rent, and all the invisible taxes that appear in the government report. 

The foreign impact on Malaga

One of the largest increases came from a source that doesn’t even live here; the non-resident income tax went up by 68.9%. That is a telling figure that indicates that Malaga is not only growing, but it’s also attracting wealth from abroad. 

Whether it’s buying second homes, investors pursuing real estate, or retirees settling on the coast, the tax data reflects the cities’ international appeal.

So far, this all sounds like a win ,and in many ways it is. The foreign buyers are bringing money, they’re spending locally, and they’re injecting life into slower economies. 

There’s another side to that story:

  • More foreign capital often means higher property values. 
  • Rental markets also mean local families will get priced out of their own neighbourhoods. 
  • It is growth, yes, but that growth is being built with tension.

Malaga is learning from cities like Barcelona and Lisbon that when the world locates your city, it never leaves room for the people who built it. 

Malaga is Spain’s new tax titan.

Malaga beat Madrid and Barcelona, and the percentage growth was achieved by pulling in 2 billion in just 4 months. Malaga’s tax collection grew more than twice as fast as the national average, setting a record. 

This indicates a growing study population, strong tourism, and a wave of digital workers choosing the Costa del Sol over co-working spaces located in capital cities. And it’s no longer a postcard backdrop anymore, it’s a serious player. 

Tourism’s footprint on the tax system 

Not all tax hikes come from corporations and residents. Some come in the form of hotel bills or restaurant tabs or rental cars, and maybe a few too many rounds of cocktails on the beach.

  • The VAT rate jumped 15.5% in Malaga, which is significantly higher than the national average.
  • Tourists are not the only ones filling seats and beds; they’re also helping to fund public services, including the infrastructure that attracts them in the first place.

More visitors can mean more strain, especially when it impacts waste systems, public transport, housing, and everyday life for locals who call the city home all year round. Growth, when fueled by tourism, rarely moves in a straight line.

Can Malaga keep this up?

The numbers are fascinating, as billions are flowing in, growth is outpacing the national average, and all signs are pointing upwards.  Málaga’s success stories are real, and it can also be uneven. 

Some would thrive in the boom while others would bear the weight, and while the tax data would read like a triumph, it might be part of a picture.

This sustained growth will, of course, need balance because the city cannot run forever just on tourist tabs and rising rents. It also needs space for workers’ policies that would ensure gains don’t drift too far from the people who are currently making it possible. 

Whether Malaga becomes a long-term model for Spain’s future or another cautionary tale about the fast, uneven growth will all depend on what happens after its boom.

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Stock Up On Bottled Water, Benalmadena. Taps Will Run Dry On Tuesday

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Mayor Lara not looking very happy about the situation. Credit: Ayuntamiento de Benalmadena

Residents in Benalmadena be warned. There will be cuts to the supply on Tuesday, July 8, as essential works have been left to the busiest and hottest time of year.

Between the times of 8am and 3pm, expect a likely drying up of the taps as council contractors attempt to plug the holes in the water pipes in the following areas:

  • Camino de Amocafre
  • Camino a la Estación
  • Camino de la Viñuela

It seems that around 80 metres of pipework has more holes than a teabag and is long overdue some repairs. The recommendation is to get some bottled water in while you still can and still enough for afterwards, as there may be some sediment left in the pipes in the afternoon.

The troublesome area? Do you remember that massive pipe burst next to the Los Patos hotel that pumped a geyser of clean drinking water into the air? That’s the area that has the problem.

The council apologises for the inconvenience that this measure may cause and thanks the citizens of Benalmadena, and its hotels for understanding while the works, aimed at improving the quality of the water supply, are carried out.

Warning from Benalmadena council and the water company.
Warning from Benalmadena council and the water company.

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DIY AC Refills In Spain Can Wreck Your Car

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DIY AC refills in Spain often do more harm than good when not done by a mechanic. Credit: khunkorn from khunkorn via Canva.com

In Spain, you don’t have to wait for the AC to break; you will notice it’s weaker, slower, and struggling to keep up with the heat. So you go to a petrol station, grab one of those do-it-yourself recharge kits and give it a boost to drop down. Except it isn’t that quick fix? The reason is that so many drivers end up weeks later with a burnt-out compressor and a bill that wipes out their summer budget.

DIY AC refills are widely sold across Spain, from petrol stations to online retailers. Most of these kits do not accurately measure gas levels, and many contain foods that are incompatible with older systems. Talleres across the country report a surge in compressor failures due to incorrect or even excessive input. This article breaks down what’s causing the damage, how much the repairs can cost in Spain, and the smart habits you can adopt to prevent your AC from failing at the most critical times. 

Why topping your AC at home can backfire

When the air starts blowing warm, most drivers assume that the gas is low. In Spain, where DIY refill cans are sold at petrol stations as well as online shops, it is easy to think that a quick recharge would be the answer.

However, this doesn’t measure what’s already in the system; it doesn’t remove moisture from the air or even diagnose leaks. They’ll add more pressure even if the system does not need it. For older vehicles specifically, that pressure would ultimately be directed to the compressor, which would break.

Mechanics across Spain have a pattern where cars are brought in with no cold air, weak flow or even rattling sounds, only to find the damaged compressor from a well-intentioned refill. The bill would be between €800 and €1,000, depending on the parts and the region. 

What mechanics do differently 

When a workshop services your AC, they don’t just add gas: They usually reset the system from the inside of the fan. 

  • First, they would evacuate the existing refrigerant, which would include any air, moisture, or leaks from previous refills.
  • Second, they would measure exactly how much gas the system needs. And if there’s a leak, they would test for it.

The DIY kits don’t do any of that, so while it might feel like you’re saving time and money, it’s often just postponing a bigger repair that could have been avoided with a €60–€100 service every couple of years.

In Spain, especially with long drives, older vehicles, and intense summers, which are common. Routine maintenance is not only a check-up; it’s what keeps the whole system from burning out in July. 

Habits that make a difference 

You don’t need to become a mechanic to keep your receipt working well; just be more consistent. These three habits can take little effort, but they can prevent the most common summer failures in Spain.

  • Begin by ventilating first, then cool the area. When the car is parked in the sun, open the windows for a minute before switching on the AC. This will allow trapped heat to escape and reduce the strain on a system when you finally turn it on.
  • Use the AC occasionally in winter. Even if it’s cold outside, do this for around 5 minutes every few weeks, as it will help keep internal seals lubricated and ensure the refrigerant keeps the circulators circulating.
  • Pay attention to the airflow because of the air feels weak, the vents are noisy, or even there’s a damn smell, those are early warnings do not wait until the system feels entirely. 

Skip the refill, save the system.

In Spain, a working AC, especially in summer, is getting through the season. But the fixes that seem the fastest often end up being the most expensive. DIY recharge might seem like a solution, but without knowing the pressure or gas type or even the condition of the system. It becomes a matter of guesswork, and that guesswork itself does not fix the compressor; it breaks down.

So, implementing small habits with occasional winter use and knowing when to skip the petrol station Shelf and book a proper service instead. It’s a boring answer, but amid a Spanish summer, voting is what keeps your car cool and your wallet intact.

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Israel Launches Aerial Attacks On Houthis In Yemen

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Israel attacks three Houthi ports and a power plant in Yemen Sunday night, Monday morning, July 7th | Credit: @sabio69 on X

Israeli Defence Forces carried out their first strikes against the Iran-backed Houthis in Yemen since the Tel Aviv-Tehran ceasefire. The Israeli military attacked three Yemeni ports and a power plant around midnight on local time Sunday night and into Monday morning, CNN reported.

The attacks come shortly after the Israeli military issued evacuation orders for civilians in the areas, warning of imminent air strikes, the BBC said.

The Israeli Air Force said these strikes on Yemen’s three ports were in response to “repeated attacks” by the Houthis on Israel and its citizens. It added that the targeted ports were being used to “transfer weapons from the Iranian regime to carry out terror plans” against Israel and its allies.

Israeli Defence Minister Israel Katz confirmed on social media the strikes on the Houthi-controlled sites, including a power station and a ship that was hijacked by the group two years ago.

Houthis will pay ‘a heavy price’

Katz said the strikes were part of “Operation Black Flag” and warned that the Houthis “will continue to pay a heavy price for their actions”.

“The fate of Yemen is the same as the fate of Tehran. Anyone who tries to harm Israel will be harmed, and anyone who raises a hand against Israel will have their hand cut off,” he said in a post on X.

“Houthi forces installed a radar system on the ship and have been using it to track vessels in the international maritime arena to facilitate further terrorist activities,” the IDF said in a statement following the strikes.

Following the strikes, Houthi forces said they “effectively repelled” the Israeli attacks, according to a post from a Houthi spokesperson on X, according to ABC News.

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