Villanueva de Gállego Risks €23.9 Million Loss Over Amazon's ICIO Tax Forgiveness
Villanueva de Gállego could face a financial shortfall exceeding €23.9 million if the Aragón government approves a tax exemption for Amazon. This situation underscores the significant economic implications of tech expansions on local municipalities, particularly regarding infrastructure taxes.
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Villanueva de Gállego stands to lose €23,942,844.31 due to unpaid Impuesto sobre Construcciones, Instalaciones y Obras (ICIO) if the Aragón government advances Amazon's expansion plan. The municipality's calculations derive from the 3.5% ICIO rate applied to Amazon's projected investments.
Comparatively, El Burgo de Ebro might incur a smaller loss of €415,263.84, pending job creation confirmation by Amazon. This situation mirrors a previous ICIO conflict in 2020, where an agreement was reached after threats to relocate. The expansion will increase the number of data centers in Villanueva de Gállego from three to nine, which raises concerns over water and energy consumption as well as local environmental impact.
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