What value is given to a flat for inheritance tax purposes?
If it has one, its “valor de referencia”, the reference value set by the Spanish land survey office, the “Catastro”. A higher value can be declared, for example the market value. That value is then used. If a lower one is declared, the “Agència Tributària de Catalunya”, the Catalan tax authority, applies the reference value. If the flat has no reference value, it is declared at its market value and the Catalan tax authority can check it, even using the valuation carried out for a mortgage.
Alburquerque Abogados
José Manuel AlburquerqueHow to look it up
The reference value can be looked up on the Catastro's online portal (“Sede Electrónica del Catastro”), using the flat's cadastral reference and the date of death. The cadastral reference appears on the bill for the “IBI”, Spain's local property tax. You need to identify yourself with a digital certificate, an electronic identity card (“DNI electrónico”) or Cl@ve (the Spanish government's online identification system). It can also be requested at a cadastral information point (“Punto de Información Catastral”). It is not the cadastral value shown on the IBI bill, which is usually lower.
If you disagree
- The reference value cannot be appealed directly. It is challenged by applying for the self-assessment to be corrected or by appealing against the tax assessment issued by the Catalan tax authority, with evidence that the particular flat is worth less, normally an expert's report. Before deciding, the Catalan tax authority asks the Catastro for a report.
- If the flat has no reference value and the Catalan tax authority checks the declared value, it can use the valuation carried out for a mortgage. That valuation can be challenged with an expert's report or by requesting a “tasación pericial contradictoria”, a formal procedure in which the heir's own expert and, if necessary, a third expert value the flat.
What to bear in mind
Declaring more than the reference value means a higher bill for the “impuesto de sucesiones”, the Spanish inheritance tax. But if the flat is going to be sold soon, a higher value reduces the gain on which income tax is paid when selling, provided it does not exceed the market value. It is advisable to do the sums both ways before filing.
This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.