Malaga Tax Office Renovation Stalled as Contractor and Government Clash Over Budget
Work on Malaga's tax agency headquarters has been halted indefinitely after a budget dispute between the central government and contractor Seranco SAU.
The comprehensive overhaul of the Malaga tax agency's main office on Avenida de Andalucía has been put on indefinite hold following a financial disagreement between the central government and construction firm Seranco SAU. The contractor, which won the February 2025 tender with a bid €28.12 million—18% below the original estimate—has asked for a contract modification and higher price, a request the Ministry of Finance is still assessing.
The building, deemed unsafe in 2019 due to critical structural flaws, has been boarded up and its perimeter reinforced. The total expense, now projected to surpass €40 million, encompasses not only the main construction but also years of temporary office rentals, fit-outs, demolition, and architectural design fees. Around 600 civil servants remain scattered across four alternative sites in the city. Without a financial settlement, the renovation timeline and completion date remain uncertain.
Why it matters
The delay adds to public spending and leaves hundreds of civil servants working from temporary locations.
In this story
