The Mayor of Benidorm, Toni Pérez, announced yesterday, Monday 24th August that the payment of the first five million euro has been ordered by mayoral decree. This step fulfills part of an agreement reached with the landowners and approved by the courts, which requires the local council to allocate a total of 60 million euro during 2026 to comply with ruling 343/2024 from the High Court of Justice of the Valencian Community regarding protected land in the APR-7 sector of Serra Gelada.
On 3rd April, the Supreme Court confirmed the sentence requiring Benidorm Town Council to pay more than 300 million euro to owners of land within the APR-7 sector of the Serra Gelada natural park. This followed the dismissal of an appeal filed by the council last summer against a May 2023 ruling by the High Court, which ordered the initial payment of 283 million euro plus legal interest to the property owners.
The local council originally planned an initial payment of 60 million euro before 31 December 2026. This was to be financed using a 55 million euro loan through municipal agreement with the Economic Impulse Fund, alongside the town’s own municipal resources.
During its next regular plenary session, Benidorm Town Council will debate a budget modification to direct 19 million euro from the 2025 treasury surplus towards the payment for the protected land. This move will allow the local authority to reduce the planned loan from 55 million euro down to a maximum of 36 million euro.
The mayor highlighted that the local administration will cover 24 million euro of the required 60 million euro using its own funds. The remaining balance will be funded via a 36 million euro loan arranged with Caixa Ontinyent and authorised by the Ministry of Finance through the Economic Impulse Fund, which is also set to be finalised in the upcoming council meeting.
The broader agreement sets the total amount owed by the council at 350 million euro, comprising 283 million euro in principal capital alongside legal interest calculated from 16th July 2018. It outlines two methods of settlement: cash payments and land transfers, bound by the commitment to pay the initial 60 million euro before the end of 2026.
Pérez stated that the proposals to be debated in the council meeting are backed by favourable economic reports from the municipal finance department. These measures will allow the town to comfortably meet the initial agreed payment for this year while reducing the interest accrued on the credit repayment. The mayor noted that the town’s strong financial situation allows for this adaptation of the initial plan in the public interest, adding that municipal services will not be cut or reduced, nor will local taxes be raised to meet the obligation.
Following the payment of the 60 million euro in 2026, a grace period on the principal debt will remain in place until 31st December 2030, during which the council may voluntarily pay off parts of the capital. From 1st January 2031, compulsory annual repayments will begin, requiring the council to settle portions of the principal debt and interest each year, with annual payments amounting to no less than eight percent of the ordinary current resources in the municipal budget.
Regarding settlement through land transfer, the agreement includes two options. The first covers interest accrued up to the signing date of the agreement, totalling 67,386,655.89 euro over five years via urban plot transfers that are directly buildable and free of development charges, which the landowners must accept. A second optional mechanism allows further land transfers of municipal property to reduce the remaining overall debt, subject to agreement from the landowners.
