✅ What is the new cadastral reference value?
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In January 2022 A new method came into force to calculate the reference value of a property. This legal reform imposes the reference value of Cadastre as the taxable base of the ITP and the Inheritance Tax.
This value will determine the taxes that must be paid by the person who inherits, buy a second-hand home or receive the donation of a property.
This means a possible increase in different taxes:
The ITP for those who buy a used house
The inheritance and gift tax
Wealth Tax.
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The taxpayer will pay taxes based on the market value of the property, as approved by the Directorate-General for Cadastre.
It is calculated from purchase prices, according to information provided by Notaries and Registrars, with what, the state of that property and the price for which it was sold would not be taken into account. Visits to homes will no longer be made to check if the value for which it has been transmitted, is the right one, since now, will be taxed by the reference value according to cadastre.
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✅ Who dictates the new Cadastre reference value?
The new cadastre reference value is determined by the General Directorate of cadastre and is based both on the prices of real estate transactions registered before a notary and the individual cadastre of each property, which is determined every year throughout the national territory.
Por otro lado, the cadastral value is valued depending on each municipality takes into account the location, the year of construction, quality and state of conservation.
In disadvantage that these values present, is that both will value equally those homes that are in the same building and plant, without taking into account the circumstances of each property, como por ejemplo, if one is reformed and the other is not.
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✅ How is the new reference value of Cadastre?
The new reference value of Cadastre will be the minimum value for which to be taxed and in case the transaction of the property is signed before a notary for a lower value, the taxpayer will be obliged to pay taxes for the value indicated according to the valuation of the Cadastre. The same, this new value also affects the wealth tax.
If the taxpayer does not take advantage of the payment of this valuation, will be sanctioned for not having been taxed in accordance with the Law.
As for the wealth tax, the law obliges to declare the properties for the highest value, either the cadastral or the one that the Administration has determined, that in the same way, will be the reference of Cadastre.
This tax rise will only affect properties acquired from January 20
, without being retroactive.
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✅ How to know the cadastral reference value of a home?
For this, the Royal Legislative Decree must be consulted 1/2004 in which the General Directorate of the Cadastre will publish in the “BOE” (Official State Gazette), a record of the reference values of each property, that may be consulted permanently through the Electronic Office of the Cadastre."
All this can be consulted directly on the Cadastre website.
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✅ Can the Cadastre reference value be used?
Yes. You can request the rectification of the self-assessment by filing an appeal on the liquidation that has been notified if you have declared a value lower than the reference.
If the taxpayer considers that the property has a lower value than the official one, must appeal and provide evidence to show that he has not defrauded the Treasury".
In principle, the objective is that the reference value of Cadastre corresponds to the market value of the properties and for this purpose, if you want to appeal, it will be the interested party who has to demonstrate that the reference value does not apply to the market value of the property, providing those proofs that support it.
In the case of Wealth Tax, the law does not provide for methods of challenging the reference value, so it should be resort to the value in the ITP or in the Inheritance and Gift Tax.
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✅ How to calculate the vCadastre reference alor?
The cadastre reference value in Spain is calculated from the cadastral value of a property. The cadastral value is a value that is assigned to a property based on its location, size and features. This value is used to determine the real estate tax (IBI) what to pay for the property.
To calculate the cadastre reference value, first it is necessary to know the cadastral value of the property. This value can be consulted in the cadastre, which is the public registry that contains information about all properties in a certain area.
Once you have the cadastral value, the cadastre reference value can be calculated by multiplying the cadastral value by an update coefficient that is established each year by the government. For example, if the discount coefficient for the year in question is 1,1 and the cadastral value of the property is 100.000 euros, the cadastre reference value would be 110.000 euros.
It is important to note that the cadastre reference value is not necessarily the same as the market value of the property.. Market value is the price the property could sell for on the open market., while the cadastre reference value is a value that is mainly used to calculate the IBI.
To calculate all taxes inherent in the sale or transfer of real estate, request an appointment now in our real estate consulting free for individuals. Know first-hand everything you need to know for the sale of your home. Free and without obligation.
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