The Cadastre Reference Value as of January 1, 2022
The New Cadastre Reference Value as of January 1, 2022
What is the Reference Value of Cadastre 2022?
From January 1, 2022, the new Cadastre Reference Value will be the new tax base of the Property Transfer Tax (ITP) that is applied on the purchase of used homes or on the Inheritance and Gift Tax (ISyD).
As of the year 2022, the taxpayer will no longer pay taxes calculated on the purchase price of his home, but on the market value of this same home. According to the law , this is the Cadastre Reference Value approved by the General Directorate of Cadastre (CATASTRO) .
This market value will be calculated from real estate sales prices, according to information provided by Notaries and Registrars. There will be no need to visit the property, to find out the state of conservation, the materials used, to know if it has been renovated, etc.
It will no longer be taken into account if the house is to be reformed and the buyer has acquired the house at a price below the market price.
What does this new Cadastre Reference Value consist of?
Know that it is a different concept from the usual cadastral value that we always know. The cadastral value is always calculated based on values set by the corresponding municipality and takes into account the location of the property, the location, the area within the city, the age, the quality of the construction, the reforms or the renovations. in the building and the state of conservation.
This value is updated by the Budget Law, although not simultaneously or uniformly for all municipalities.
The new Cadastre Reference Value is determined by the General Directorate of Cadastre and, as we have explained previously, it is based on the calculation based on real estate transaction prices previously carried out before notaries and based on the cadastral characteristics of each property.
This value will be determined each year, simultaneously, in all the municipalities.
Both values are objective. Both the new Cadastre Reference Value and the already known cadastral value will value two dwellings on the same floor of a building, with the same surface area, even though one of them is renovated and with the highest qualities and the other needs reform. These two values do not take into account the circumstances of each property within the dwelling.
The new reference value of the Cadastre comes into force, from January 1, 2022, the tax base of the Property Transfer Tax and Documented Legal Acts (ITPAJD), and the Inheritance and Donations Tax (ISyD), as it is established in Law 11/2021 on measures to prevent and fight against fraud.
The new reference value of the Cadastre is the minimum value for which to pay taxes when buying a home or inheriting a house. When signing a deed for the transaction of the sale before the notary for a lower value, the regional treasury will oblige the taxpayer to pay taxes for the value indicated by the new valuation of the Cadastre, notifying him of a settlement, and without the need to initiate a verification of values. .
There is also the possibility that the taxpayer who declares according to the deeded value, below the reference value of the Cadastre, may be sanctioned for not having paid taxes according to the tax base provided for in the Law.
In this case, the legal modification operated in this tax obliges to declare the real estate for the greater of the following values: the cadastral, the determined or verified by the Administration for the purposes of other taxes, or the price, consideration or value of the acquisition . Said value “determined” by the Administration is, obviously, the reference value of the Cadastre.
The change in this tax has become effective this same month of January 2022. This tax increase will only affect real estate acquired from January, not the existing assets of the taxpayer.
This new reference value also affects the Wealth Tax, although it is not the tax base. The reference value of the Cadastre will also affect the value of acquisition and transmission in taxes such as personal income tax and municipal capital gains, when the regulations refer to the fiscal values provided for in the Inheritance and Donations Tax.
Contact: DB Real Estate International – Dirk Backaert – iPhone: 34 609 934 211 – Email: info@dbrealestateintl.com
Appeal the reference value of Cadastre before a verification of values
The reference value can be challenged by requesting the rectification of the self-assessment presented by it, or by appealing the settlement notified to it (for not submitting a self-assessment, or for having presented a lower value than that determined by the reference.
“The problem is that both the ITPAJD law and the ISyD law presume that the reference value of the Cadastre corresponds to the market value of the real estate. Therefore, it will be the taxpayer who must prove and demonstrate that said reference value has nothing to do with the market value of the property.
To do this, you can use any means of proof admitted in law, “says José María Salcedo, partner of the Ático Jurídico office.
In addition, the expert adds that, in the case of Wealth Tax, the law does not establish any mechanism to challenge the reference value as of January 1, 2022.
Therefore, it will be necessary to use said value in the ITP or in the Inheritance and Donations Tax, when the property is acquired, so that it is not taken into account in the Wealth Tax.
Source:
©ÁTICO JURÍDICO – SALCEDO ABOGADOS 2017 – The 10 questions you need to know to face the Cadastre reference value
BOE Announcement of the General Directorate of the Cadastre for general knowledge of the Reference Values of the Cadastre of Urban Real Estate .
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