The Government has reached this Tuesday an agreement with the Catholic Church on tax matters so that all its properties not intended for worship pay from now on the special contributions and the tax on constructions, facilities and works. The agreement has been sealed by the Minister of the Presidency, Félix Bolaños, and the Episcopal Conference, with the consent of the Holy See.
Until now, the Church has been exempt from paying special contributions, which is a tax that a council can collect when it paves or improves the public services of a road by increasing the value of the property located on it. Until now, ecclesiastical properties have not had the obligation to settle the so-called ICIO, which also consists of a municipal fee that individuals have to pay when they carry out reforms on a property. The fee is 4%.
The change affects parishes, schools, residences or homes owned by the Catholic Church if they carry out any work, indicate sources from the Episcopal Conference.
The Government and the Episcopal Conference will process before the Vatican the waiver of these exemptions, which was a matter derived from the Agreements between the Spanish State and the Holy See. The Executive will also repeal the ministerial order of June 5, 2001 from the Ministry of Economy and Finance, from the period of José María Aznar, which regulates the inclusion of the ICIO in the Agreements between Spain and the Vatican.
It is true that a ruling from court number 4 in Madrid already established in 2018 that the Church had to pay the ICIO if it reformed a building intended for activities other than those strictly for worship.
“The agreement is developed in the shared will between the Government of Spain and the Episcopal Conference to equate the fiscal regime of the Catholic Church with non-profit entities, in accordance with the principle of non-privilege and non-discrimination”, can be read in a joint statement.
