How to know the cadastral value of a property

Category: General

Knowing the cadastral value of a property is essential for any owner, buyer or investor. Whether because you want to sell, you are calculating the IBI or you need to declare correctly in your personal income tax, this information can make a big difference. From laHome Inmobiliaria, with years of experience advising owners in La Cañada (Valencia) and working with international clients in markets such as France, the US or Germany, we know how many doubts this topic generates. Therefore, we explain it to you in detail and from practice.

What is the cadastral value of a property?

The cadastral value is the administrative value that the General Directorate of Cadastre assigns to each property, taking into account both the value of the land and that of the construction. This value does not correspond to the market value, but is key for the calculation of taxes such as IBI, Inheritance Tax, or IRPF.

In our daily work, especially with foreign clients, we notice that this concept is often confused with appraisal or sales price. It is important to be clear that the cadastral value is an official reference established by the Administration, and that on many occasions it is below the market value.

Why is it important to know it?

From our headquarters in La Cañada, we help owners every week who need to know their cadastral value for several reasons:

• Municipal taxes: The most obvious is the Real Estate Tax (IBI). This tax is calculated based on the cadastral value. If you don't know, you can't know if you are paying fairly.
• Income tax return: In some communities, non-rented properties are taxed with an income tax that is also calculated with this value.
• Inheritances and transfers: If you are going to inherit, donate or sell a home, the cadastral value may affect taxes such as Inheritance or Property Transfers.
• Reference value:Since 2022, the Tax Agency uses a new concept (the Cadastre reference value), which is based on purchase and sale prices. Although it is different, it is calculated on the same cadastral system.

In summary, knowing your cadastral value can help you plan your taxes and avoid tax scares.

Factors that determine it

The cadastral value is not arbitrary. It is calculated by the General Directorate of the Cadastre following a series of objective technical criteria. Some of the most important are:

• Location of the property: A home in the center of Valencia is not the same as a home in a more rural environment. The area has a huge influence.
• Age and state of conservation: A newly renovated or newly built home will have a different value than an older one.
• Constructive characteristics: Surface, materials, facilities, orientation or quality of finishes are aspects that are valued.
• Land value: This factor can change over time, especially in urban areas with high demand.
• Use of the property: A commercial premises is not taxed the same as a home or a garage.

One of the services we offer at laHome is to review all this information with our clients, especially foreigners who buy in residential areas, to make sure they understand what part of the value is assigned to the land, what to the construction and how it can evolve.

How to check the cadastral value step by step

The good news is that checking the cadastral value of your property is relatively simple. There are several ways, and here we explain them all:

On the IBI receipt

The most direct method. Every year, the City Council issues the receipt for IBI (Real Estate Tax). This document shows the cadastral value , normally broken down into land value and construction value.

Many of our clients bring us the IBI receipt directly to calculate the tax costs of a future sale. It is an essential document in any operation.

Through the Electronic Headquarters of the Cadastre

Another option is to access the Electronic Headquarters of the Cadastre. You only need the cadastral reference of your home. You can also find it in writings, receipts or Land Registry extracts.

There you can consult:

• Updated cadastral value
• Physical and legal data of the property
• Cartographic information (maps, plans)

This system is especially useful for international investors or buyers. At laHome we use it daily to prepare technical sheets that facilitate decision making.

For the Income Tax return

If you submitted your personal income tax return, you can check the cadastral value in the section on real estate not affected by economic activities. The Tax Agency automatically collects these values if they are registered in your name.

In person at the Town Hall or Cadastre Management

If you prefer a more traditional option, you can go to the corresponding City Council or the Territorial Management of the Cadastre. You will need to identify yourself as the owner or provide authorization.

Differences with the reference value and market value

Many times we confuse the cadastral value with two other concepts that are vital to distinguish:

• Reference value: It is the new criterion of the Tax Agency to set the tax base for certain taxes such as Inheritance or Transfers. Since 2022, it is taken as a reference to determine if you have paid a “sufficient” price when purchasing a property. Although it is calculated differently, it is also based on the information from the Cadastre.
• Market value:It is the price at which a property could be sold under normal conditions of supply and demand. This value can be much higher than the cadastral value. As a real estate agency, we move in this field constantly and we calculate it with comparative tools, but also with technical criteria and real experience in each area.

At laHome we always warn our clients that the cadastral value is not used to set a sale price, although it is key to estimate taxes or associated costs.

Possible changes and how to claim a review

The cadastral value can be updated in two ways:

• Municipal cadastral review: When a municipality updates all cadastral values, normally after decades without doing so. In these cases, the update may lead to notable increases in the IBI.
• Individual update due to alterations: If you carry out renovations, change the use of a property or expand the constructed area, the Cadastre can review the value.

If you think the value is incorrect, you can file complaints. It is a technical process that we at laHome have sometimes managed for our clients, especially when errors are detected in the recorded data or inconsistencies that directly influence taxes.

Practical advice for owners in the Valencian Community

Working from La Cañada, in Paterna, and focusing on residential areas, we have seen that many owners do not review the cadastral value until they are faced with a sale or inheritance transaction.
Some practical advice from our experience:

• Periodically check the cadastral value: You can do it online or by asking us for help. It's free and can help you detect errors.
• Check the Cadastre data: Built area, use, number of homes... if there are errors, you can request a correction.
• Take into account the cadastral value to calculate taxes:Whether it is the IBI or the Personal Income Tax, this value has a direct influence. Being clear about this can help you plan your taxation.
• If you buy a home: Check the cadastral value and also the reference value, to avoid tax surprises.

At laHome we help you with all this. Our team, made up of three strategic departments and more than 30 people, is used to managing these issues, both with local and international clients.

We speak five languages and offer comprehensive real estate , from valuation to document and tax management.

In addition, for each exclusive sale we make, we donate part of the profits to the Spanish Association against Cancer, as part of our social commitment.

Was this information useful to you? If you are thinking of selling, buying or inheriting a property and need to know the cadastral value or any other related information, you can count on us.

We are laHome Real Estate, professional, close and committed to you. Contact us, we will be happy to help you!