Change in Cadastral Value in 2022: all You Need to Know

20 de January de 2022

Since January 1, 2022, the cadastral value of all types of properties has changed. This can affect you a lot, so we propose to explain in detail everything you need to know. Why has the cadastral value changed? How can it affect you? And how to consult it to know it firsthand.

Contenido

1 The cadastral value for calculating taxes
2 Where the Cadastral Value of a Property is Applied
3 How the Cadastral Value is Calculated
4 And how Does the Cadastre Calculate the Cadastral Value?
5 Does the change in cadastral value benefit or harm you?
6 What to do if you consider this unfair?
7 How to consult the change of the cadastral value
8 Is there a way to claim for the increase in the cadastral value?
9 How can I justify my claim?

The cadastral value for calculating taxes

First, you should know that it is essential that you know perfectly the cadastral value of a property you own or want to buy. Why is it so important? Mainly because the cadastral value of a home or any other property is the reference value that the Treasury takes into account when calculating various taxes and official fees.

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Where the Cadastral Value of a Property is Applied

That's right, the cadastral value of a property is used as a basis for calculating taxes such as:

Inheritance and gift tax.
Property Transfers.
Documented Legal Acts and Heritage.

In short, those taxes that always have to be paid when a sale of a home or property of any kind is made.

How the Cadastral Value is Calculated

The cadastral value is approved each year by the General Directorate of the Cadastre. That is why it is there where you have to consult its value before doing any operation that involves paying taxes of any kind.

And how Does the Cadastre Calculate the Cadastral Value?

What the General Directorate of the Cadastre does is calculate the value taking as a reference the sales operations that have been carried out in the area of the property. For this, it uses the data provided by the property registrars, notaries and other entities involved. Once the data from each area has been collected, it applies tables and reduction factors.

In short, as you have seen, although it is a public body that sets the cadastral value, it is guided by the general state of the housing sales market in each population area.

Does the change in cadastral value benefit or harm you?

This way of calculating the cadastral value means that in many cases taxes will not be paid for the actual sale price but for the cadastral value. So it does not have to benefit you, rather it could harm you and may mean paying more taxes.

It will be so because when paying taxes will be calculated taking into account the highest value between:

The sale price that appears in the deed of sale
The new annual cadastral reference value.

That is, even if you sell for less money than the cadastral value, you will have to pay more taxes. And if you sell above the price of the cadastral value... also.

What to do if you consider this unfair?

Well, little can be done, since the Treasury does not take into account the special circumstances of each property or performs a personalized monitoring of it. That is, if your area sells expensive, the cadastral value of your home or property will be higher... even if your house is in conditions that are "falling to pieces", to give a simple example.

The new cadastral reference, as I have already mentioned, is applied in a general way throughout the area where the property or home you own is located.

Therefore, a flat that is renovated and completely new that is sold below the cadastral value, will pay the same taxes as a house in the same building that is unrenovated and has everything old and original.

Even so, there is a formula to claim that the cadastral value is revised if you do not agree. Keep reading and I will explain it later in this article.

How to consult the change of the cadastral value

That is why it is important that you consult the cadastral value of your property, to check if it has undergone variations. Especially if you are considering selling your house or property. And of course, also if what you want is to buy to know how much you will have to pay in taxes.

To consult the cadastral reference value can be done online comfortably. To do this you must visit the Electronic Headquarters of the Cadastre and follow these steps:

Have on hand the cadastral reference of the property you are going to consult. If you do not know it, in the electronic headquarters you have ways to do it.
You will need to have a digital certificate installed on your device, or an electronic ID or use the Cl@ve system.
In the section "reference value consultation" and entering the reference, it will guide you in the process until you reach the value of the cadastral reference.

Is there a way to claim for the increase in the cadastral value?

There is a formula to claim and appeal the increase in the cadastral value. The only thing you should keep in mind is that the time to claim the cadastral value is when buying the house and settling taxes. That is, if you put your house on sale will be the buyer who has to do it.

There are two ways:

First way to claim: once you submit the self-assessment of taxes you request the rectification of the cadastral value before the administration.
Second way to claim: in case the administration communicates the tax settlement to the taxpayer, before settling, you can request the review of the value.

In both cases, whoever requests the rectification of the cadastral value will have to provide evidence that said value should be lower.

In both cases, the Cadastre will request data from the Treasury and it will prepare a report with its judgment of value. Based on this report, a variation of the cadastral value will be determined or it will remain as it is.

In both cases, we already anticipate that it will be difficult for the Administration to rectify a value that it has established itself. Although if the evidence is weighty and proves the state of the property could justify a reduction of the cadastral value.

If this occurs, it will mean a reduction in the amount of taxes to be paid for the buyer, good news without a doubt.

How can I justify my claim?

From EUROVAL, we put at your disposal our advisory reports. We have a service oriented to the study of the real value of the property and the analysis of the reference values that affect the calculation of the tax (sale price and new annual cadastral reference value).

This appraisal report will serve as a justifying basis for the request for rectification or review of the cadastral value before settling taxes.

Contact us without obligation.