The reference value of the Cadastre, Law 11/2021 on measures to prevent and fight against fraud
his law came into force on July 11, 2021 but it was not applied until January 1, 2022 that the new reference value of the cadastre is applied, this being the tax base for taxes such as ITP, inheritance tax or donations.
It is no longer the real value of a property that determines the taxable base of these taxes, but its market value, which is determined from the real estate reference value set by the General Directorate of Cadastre.
What happens to properties that do not have a reference value?
In this case, the taxpayer is only obliged to pay taxes for its sale value, which should coincide with the deed. In other words, you must pay the ITP or the ISD, depending on whether it is a purchase or a donation, based on the market value of the home. To do this, you can be guided by the write value of it.
And it is the Treasury who, if they do not agree with what has been declared, must demonstrate that the deeded value does not correspond to the market value. If the Administration decides to initiate a verification of values, they must do so according to the methods provided for in article 57.1 of the General Tax Law.
What happens if the tax is below the reference value of the Cadastre?
That the law is being breached, and it is very likely that the Treasury will initiate a procedure to regularize the taxpayer's situation and force him to pay the corresponding value, and that it will initiate a disciplinary proceeding against the taxpayer.
Does this mean that the reference value of the Cadastre cannot be used?
The law contemplates two ways to challenge this reference value:
1) Taxing according to the reference value and then requesting the rectification of the submitted self-assessment, together with the return of undue income.
2) Taxing according to the deed value, when it is lower than the reference value, and then resorting to the liquidation notified by the Treasury. However, in this case, default interest would have to be paid and the risk of being sanctioned would be added.
How is it shown that the reference value of the Cadastre does not correspond to the market value of a property?
To prove that the reference value assigned by the Cadastre to a property does not correspond to its market value, a taxpayer can resort to the presentation of appraisals, expert reports, photographs of the home or a notarial certificate that justifies its real state, but to date there is no jurisprudence that establishes what would be the admissible means of evidence and that would help us demonstrate that the reference value is not adjusted to the reality of the property.
In the event that a taxpayer does not claim before a result that he considers incorrect, the reference value determined by the Cadastre will acquire firm status.
On the other hand, it is important to bear in mind that if the value of the deed is less than the reference value of the cadastre, the taxpayer must pay their taxes and the notary and property registry expenses, depending on the higher price of the two.
Discover Vicky Vich
Who is Vicky Vich?
Today we are getting to know one of the key personalities of our REU family better, the REU Club Events Ambassador, who energizes REU meetings by perfectly combining the unique qualities that make her personality that of a true Empress by nature.
José Manuel Puga interview
Patricial Pal, de REU Ambassadors Sections, entrevista a josé Manuel Puga, CEO & Socio Fundador de la Asesoría Puga & Alarcón.
Lee el artículo desde el enlace
Networking Event 25 of May
We already have a date for the next REU meeting. Make a hole in your agenda and come meet new people and generate new opportunities!
Now is the time to strengthen strategic relationships within the sector. Come share with us on Thursday, May 25, 2023 from 7:00 p.m. to 9:30 p.m.
The price of housing continues to rise, growing 3.3% in the fourth quarter
Rental offer collapses in Mallorca
The majority of Spanish provincial capitals (32 of the 52) now have much less rental housing than there was a year ago. In the case of Palma, the drop is up to 30 percent.
The fall in rent in Spain has been evident in the last year. The supply of rental homes has decreased by 17 percent, nationwide during the fourth quarter of 2022, compared to the same quarter of 2021,...
Ibavi will guarantee the purchase of homes for people with an income of less than €68,500
The Balearic Housing Institute (IBAVI) will guarantee 20% of the mortgage down payment for the purchase of a home, a measure aimed at helping all those people with the financial capacity to pay the mortgage loan but who cannot assume this initial expense. All in all, the range of possible beneficiaries arranged by the Government is strikingly wide, since people with an income of up to 68,541...
Read more
The Balearic real estate sector opens the US market
The real estate sector in the Balearic Islands has opened up to the US market by landing on the islands Berkshire Hathaway HomeServices, which Nova Mallorca has acquired, so that it will become the reference real estate agency for the US, as reported yesterday by the Balearic National and International Real Estate Association (Abini).
Berkshire Hathaway HomeServices is the...
The demand for buying flats exceeds for the first time that of renting
In 2022, the demand to buy a home represents 50% of the market, compared to 38% looking for a rental. The remaining 12% search simultaneously in both markets. This is one of the main conclusions of the Fotocasa Research report 'Radiography of the housing market in 2021-2022' prepared by the real estate portal Fotocasa, for the fifth consecutive year, with the intention of making an...
Read more