The new reference value of Catastro


Posted and filed under Property in Spain, Property Purchase/Sale Service, Taxes in Spain.

Reference Value

A challenge the Administration always has is to set a value for each property. The importance of the value means to choose the tax base and, therefore, the amount of taxes the Tax Agency collects.

You might have heard about the Catastral Value (Valor catastral). This is the value Catastro gives to your property so we can calculate the council tax and use it for the income tax. This number goes with a 20-digit code.

Reference value

However, since 2022 we have a new value called: reference value (Valor de referencia) of Catastro. They get an analysis of the market based on the operations done with a date from notaries and other sources, so your property will get a value close to the market value. This will be updated yearly to adapt to the market changes.

This value will be used on the transmission tax and the inheritance and donation tax when the value we have for the operation is lower than the reference value.

Its had an impact on my taxes to be paid?

Primarily, we could say no. Nevertheless, some tax advisers are claiming this value above the market value, which at the of the day means you will be paying more taxes.

Before this new system, we could check some tables each community used to publish. If the purchase value was below, it was the responsibility of the Tax Agency to prove was higher. So it was more work for them. Now, it is the opposite. If you don’t agree with the reference value, you should appeal it.

I don’t agree with this value. What should I do?

Our recommendation is to pay your taxes with the value and later start a process where you claim the value was lower. You will need to pay for a valuation because Tax Agency needs proof.

The other option is to pay for the amount you think is correct. It is likely that you will receive a letter from the Tax Agency. You can appeal that letter. However, you will receive fines and not until they give you the reason, they can embargo you.

What happens if there is no reference value?

This can happen. Catastro is not able to control as yet all of the areas in Spain. You will pay your taxes based on the purchase value of the operation, so it will be simpler. However, the Tax Agency can always do a valuation of your property later.

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