This is how the new reference value of the Cadastre affects you

One of the main novelties that the Anti-Tax Fraud Law brings us this 2022 is the new reference value of the Cadastre.

A new regulation that was launched on January 1st and has become the tax base for some of the most notorious taxes in the real estate sector, such as:

• The Tax on Property Transfers and Documented Legal Acts (ITPAJD).

• Inheritance and Gift Tax (ISyD)

From now on, the reference value of the Cadastre will be determined by the calculation of the value of real estate transactions that have been carried out in the area and will be set by the General Directorate of the Cadastre.

It will be annually updated in all municipalities.

What does this new change mean?

• Taxpayers will pay the taxes taking into account the market value, and not based on what the house has cost.

• That the market value will be calculated based on the prices of property sales, the geographical area and the type of housing.

• That the need to visit the property to know its state of conservation disappears, since this information will no longer be taken into account. In the same way, it will not be valued whether or not the house is reformed. In other words, two homes in the same building, one renovated and the other not, can be taxed in the same way.

There is the possibility of appealing

Law 11/2021 on measures to prevent and fight against fraud gives the taxpayer the opportunity to appeal if they are not satisfied with the value.

There are two ways of doing it:

1. Presenting a self-assessment and subsequently appealing, alleging and demonstrating that the value was not correct. The term to claim is 4 years.
2. Paying the value that the taxpayer considers and presenting a claim at the time that the Tax Agency aks for the remaining amount. This option may carry penalties.

If you have doubts about how the tax changes and the new reference value of the Cadastre in the real estate sector can affect you, the team at KM2 Real Estate Services, a reference real estate agency in Barcelona, remains at your entire disposal to help you and advise you on everything you may need.

You can contact us here.