Cadastral value in Spain refers to the assessed value of a property for tax purposes, which is used to determine property taxes and other fees.
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The cadastral value in Spain is an important concept in determining property taxes and other fees. It refers to the value of a property that is assessed by the government for tax purposes. This value is determined based on various factors such as the location, area, age and condition of the property. The cadastral value is used to calculate the property tax, known as the IBI, which is paid annually by the property owner.
According to Idealista, a well-known Spanish real estate website, “the cadastral value is a reflect of the estimate of the market value of the property”. This value is determined by the Spanish Tax Agency and is updated every 10 years. It is important to note that the cadastral value may not reflect the actual market value of the property, as it is based on an estimate rather than a sale price.
Interesting facts about the cadastral value in Spain:
- The cadastral values of properties in Spain have been criticised for not being updated frequently enough, leading to inaccurate valuations and unfair property taxes.
- In some cases, the cadastral value can be reduced if the property is deemed to have defects or problems that affect its value.
- The cadastral value is also used to calculate other property-related fees, such as notary fees and land registry fees.
- Some regions in Spain, such as Catalonia, have their own cadastral registers which are managed independently from the rest of the country.
- It is possible to contest the cadastral value if you believe it is incorrect, by filing an appeal with the Spanish Tax Agency.
To better understand how the cadastral value is used to calculate property taxes in Spain, here is an example of the tax rates for the city of Madrid:
| Cadastral value (€) | Tax rate (%) |
|---|---|
| Up to 167,000 | 0.424% |
| 167,001 – 334,000 | 0.569% |
| 334,001 – 668,000 | 0.692% |
| 668,001 – 1,002,000 | 0.817% |
| 1,002,001 – 2,004,000 | 1.039% |
| 2,004,001 – 4,008,000 | 1.254% |
| Over 4,008,000 | 1.364% |
In conclusion, the cadastral value is an essential part of property ownership in Spain. It determines the amount of property tax a property owner must pay and is an estimate of the property’s value for tax purposes. While it may not always reflect the actual market value of the property, it is important to keep it up to date to avoid penalties and disputes with the Spanish Tax Agency.
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The “Valor de Referencia Catastral” law in Spain, which came into effect on January 1st, 2022, requires buyers to pay transfer taxes on the catastrophic reference value if it is higher than the purchase price, causing issues for buyers and sellers. Lawyer Alex Radford advises waiting until the taxable value is reviewed and appealing if necessary. He also emphasizes that auction houses should provide the catastrophic value when advertising auctioned properties and encourages thorough research before purchasing. Radford offers his services to provide advice on the subject through his website or email.
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For the Tax Department, the cadastral value is what your house is worth, irrespective of what you may have paid for it, or the amount of your mortgage. Therefore, the ministry uses the Cadastral Register to determine this sum.
The valor catastral is the rateable value of a property in Spain and is used to caculate property taxes. In some cases if there is no valor catastral, the purchase price of the property is used for the calculation.
The valor catastral is the rateable value of your Spanish property. This is not linked to the market value or purchase cost of your Spanish property. For non-resident property owners, it is used to calculate the “imaginary” rental income that you have on the property, and therefore used to calculate the deemed annual income tax due.
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What is the difference between cadastral value and market value in Spain?
The cadastral value is used to calculate some taxes, such as Property Tax (IBI) and capital gains, for example. In contrast, market value is calculated in the sale-purchase transaction.
Simply so, What is a cadastral reference in Spain?
Answer to this: What is a cadastral reference? The cadastral reference in Spain is an official and obligatory identifier of real estate, such as houses, premises, plots of land, etc. It is a public document to which anyone can have access and is composed of an alphanumeric code with twenty letters and numbers.
Also, What is a catastral in Spain? The “valor catastral” of a property in Spain is an important estimate of its capital value. The catastral system is unlike the land registry – which records legal ownership of the property – in that it is used to calculate the volume and amount of property taxes due on each property.
What is the reference value of a property in Spain? – Market value. The “reference value” of a property in Spain will be the minimum taxable base for Transfer Tax and Stamp Duty (ITP and AJD) and Inheritance Tax.
Similarly, What is cadastral value? In reply to that: The cadastral value is the value that the Spanish administration gives to each property, based on data found on the land registry. Hence, it can be used as a pretty good estimate of the capital value of the property.
Accordingly, Do you know the cadastral value of a property in Spain?
Whenever you decide to buy a property in Spain, this word appears early on the process. No matter if the purpose is to reside or to invest, knowing the cadastral value is essential. And in this article, we will go over the main issues related to this concept. What is the cadastral value of a property and how can you calculate it?
Also to know is, What is the Valor Catastral in Spain? The valor catastral is the rateable value of a property in Spain and is used to caculate property taxes. In some cases if there is no valor catastral, the purchase price of the property is used for the calculation. However, in our experience, this usually results in a higher tax being levied than if the valor catastral had been used.
Also Know, What is a Catastral value?
The “Catastral Value” is a very important value which is calculated by the administration in each real estate in Spain. It is used to calculate Spanish tax like the IBI (Council Tax), and the IRPF (Income Tax), and others, as well as to calculate the FISCAL VALUE of the property in case of sales, for example.