Albufeira council ranks third in the country when it comes to the degree of financial independence from the State, according to the Councils Financial Yearbook, 2016.
For ‘independence,’ read ‘property taxes,’ made up from rates income and the taxes received when properties are bought and sold.
Even though Albufeira council made good efforts in reducing IMI and IMT rates last year, winning the "highest tax reduction council in Portugal", overall its financial independence is excellent.
The Algarve sports four councils riding high in the rakings, all beaten by the Lisbon powerhouse whose wealth was boosted by the start of the Tourist Tax, charging tourists to stay in the capital.
Lagoa and Albufeira appear in second and third place of the national ranking, then Lagos in fourth place and Loulé in ninth position.
The authors said those councils in the top echelon have shown what "strict management" of council finances can achieve, especially when it comes to relieving property owners of money - householders being the main sources of council revenue and, therefore, the "key to success."
The figures presented in the ranking reveal how many of the Algarve’s councils progressively have obtained greater financial independence by obtaining independent revenues and thus, not needing so much State support.
Of the four Algarve councils that reduced their take from rates (IMI) in 2016, Albufeira, Loulé and Lagos are among those golden municipalities that managed the trick of collecting more overall revenue while setting lower rates.
Whatever the ins and outs of this ranking, it is impressive to see four Algarve councils in the top ten as the region's municipal treasuries are nursed back to financial health.
Loulé's mayor, Vitor Aleixo's mid-recession comments remain true when it comes to council budgeting, paraphrased as "if you spend less and earn more, the results will soon show through."
