What is the cadastral reference value (“valor de referencia”) and how do you check it?

Question

José Manuel Alburquerque · Accepted Answer

It is the value that the “Dirección General del Catastro”, the Spanish land survey office, sets every year for each property based on the prices of actual sales signed before a notary in its area. Since 2022 it has been the minimum value on which property transfer tax (ITP) is paid, or stamp duty (AJD) if the home is new, so if the price is lower, the tax is calculated on the reference value. It should not be confused with the cadastral value shown on the bill for the “IBI”, the local property tax. It can be checked on the Cadastre's online portal (“Sede Electrónica del Catastro”) using the flat's cadastral reference and the date of purchase. It is advisable to do so before signing, to know what value you will be paying the tax on. What it is and why it matters when buying The Cadastre analyses the prices of sales in each area and uses them to set average values, which it publishes in value maps. It then applies a reduction to the value of each property so that it does not exceed market value. It has existed since 1 January 2022. The law uses it as the minimum tax base for ITP and AJD, as it does for inheritance and gift tax (the “impuesto de sucesiones y donaciones”). If the price in the deed is higher, tax is paid on the price. If it is lower, on the reference value. For example, if you buy a flat for 250.000 euros and its reference value is 280.000, ITP at 10 % is 28.000 euros, not 25.000. The cadastral value, the one shown on the IBI bill, is a different value and is used to calculate that tax. The reference value does not change the amount of IBI you pay. How to check it before buying Ask the seller for the flat's cadastral reference. It appears on the IBI bill and usually also on the land registry extract (“nota simple”), the summary given by the Land Registry (“Registro de la Propiedad”) of who owns the flat and what charges (encumbrances) it has. Look up the value on the Cadastre's online portal using that reference and the expected date of the deed. You need to identify yourself. As it is not protected data, you can check it even though you are not yet the owner. The value is set every year. If the deed ends up being signed in a different year from the one expected, the value may change. If you think it is too high If the value is high because the Cadastre describes the flat incorrectly, for example its square metres, its use or its age, the registered owner can ask at any time for the details to be corrected. The certificate explaining how the value was calculated, known as the “certificado de motivación”, can only be requested by the owner registered in the Cadastre. Before you buy, both of these would have to be requested by the seller. The reference value is not challenged separately but as part of the tax itself. How to do so is another matter. In the rest of Spain the rule is the same, except in the Basque Country and Navarre, which have their own system.