The situation surrounding the land dispute in Benidorm has become one of the most talked-about topics in Spain. A court decision requiring the payment of over 350 million euros for a plot in the Serra Gelada area could have serious consequences for the city budget. For residents and businesses, this could mean changes in funding for city projects and services, as well as new challenges for the entire municipal system.
For the first time in many years, the authorities in Benidorm have openly expressed their willingness to negotiate with the owners of the disputed land — the Murcia Puchades family. Up until now, no talks had taken place, despite repeated attempts by the owners. Now that the court ruling has become final, the city’s mayor, Toni Pérez, has proposed to begin discussing payment terms and possible cooperation.
A turning point in the negotiations
This coming Friday, the city council will consider launching an official negotiation process with the landowners. The plan is to establish a special period for finding a joint solution, involving only technical staff from the administration. Politicians will not take part in this process in order to avoid pressure and conflicts of interest.
The court has given Benidorm’s administration until March 10 to submit a plan for paying the principal amount of the debt—283 million euros, not including interest, which continues to accrue. This decision is the result of a years-long legal battle, now considered one of the largest and most significant in Spanish urban planning history, both in terms of the amount and its consequences.
Financial Support
Amid the threat of financial collapse, Spain’s Ministry of Finance approved a €55 million loan through the Official Credit Institute (ICO). The funds will be allocated under the local administration support program and are set for a 12-year term, with repayments starting in 2027. The interest rate will be approximately 3.5%.
According to the mayor, the decision to secure the loan was made possible by the stable state of the city’s finances. Municipal experts assure that repaying the loan will not result in cuts to social programs or increased taxes. Recent reports from the economic department confirm that the city is able to meet its obligations without impacting residents.
Political Disputes
A heated debate erupted within the city council. The mayor accused the opposition of failing to offer support, calling their actions harmful to the city. In response, representatives of the socialists demanded the mayor’s resignation, arguing that he had postponed the solution for too long and acted only under pressure.
According to El Pais, the situation in Benidorm illustrates how protracted land disputes can trigger financial upheaval for an entire city. The question of exactly how the huge debt will be repaid remains unresolved, and negotiations with landowners may become the only chance to avoid even greater losses.
In recent years, there have already been instances in Spain where court decisions on property issues have caused serious financial difficulties for municipalities. For example, in Valencia and Alicante, local authorities faced the need to pay substantial compensation for expropriated land, leading to budget revisions and cuts in infrastructure spending. Such situations highlight the importance of transparency and prompt action in legal disputes to avoid debt traps and maintain the stability of municipal finances.
