As of January 1, 2022, the new reference value has begun to be applied to calculate the tax base of the Tax on Patrimonial Transmissions and Legal Acts (ITP) and the Tax on Inheritance and Donations (ISD), a change in taxes announced by the Ministry of Finance and Public Function in October 2021 and that some experts in the real estate sector affirm that, in practice, it will make most taxpayers have to pay more when buying their homes.
The Ministry of Finance and Public Function announced in October 2021 a substantial change in the way of calculating the tax base of the Tax on Patrimonial Transmissions and Legal Acts (ITP) and the Tax on Inheritance and Donations (ISD). What does this mean? That those who acquire a property in 2022 will have to declare the operation for the Land Reference Value when it is higher than the deed and they will have to take care of the proof if they are not satisfied.
What is the Cadastral Reference Value?
The reference value of a property is one of the economic characteristics of its cadastral description and in no case will it exceed the market value.
It is determined by the General Directorate of the Land Registry as a result of the analysis of the prices of all the sales of real estate that are carried out before a notary public, based on the data of each property, established in the Real Estate Registry.
Until now, to calculate the taxes mentioned above, the real value of the property was used, that is, the real effective price that had been determined in the sale. Now, with this change, the new value used is the reference value, which is equivalent to the market value.
This change is produced by the reform of the Tax Anti-Fraud Law.
So, can anyone know the value of my home?
Yes, since the cadastral reference value is not a protected data, and it can be known permanently in the Electronic Office of the Cadastre. To access the query, you must identify yourself with your DNI, with a digital certificate or through Cl@ve.
In addition, cadastral owners can also learn through this same means the elements that have been applied in the individualized determination of the reference value of their properties.
Cadastral value and reference value of the cadastre: it is not the same
Although these names are similar, they are different concepts. On the one hand, the new reference value of the cadastre is based on a calculation of the sale of real estate before a notary public and will be calculated annually.
On the other hand, the cadastral value is calculated based on the values of the municipality where the house is located, taking into account its location, age, reform, etc. This is the value that serves as the tax base for the Real Estate Tax. Neither the IBI nor the Value Added Tax (VAT) are affected by the new reference value.
And, how to challenge the Land Registry reference value?
Tell us about your case and we will help you.
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