The Cadastral Reference Value is one of the most used terms in real estate transactions, being a key indicator in setting prices and tax charges. We have asked the Barcelona notary Bosch-Bages to detail what this consists of, what relationship it has with the Cadastre and what legislative changes have occurred since 2022.
Cadastre
The Cadastral Reference Value represents the most probable price for which a property could be sold between independent parties and free of charge, determined from the data in the Cadastre. The latter is an administrative statistical record that includes a physical, legal and economic description of rural and urban properties. This database is not only essential to know the value of a property, but it is also crucial to calculate the Real Estate Tax (IBI) and, from 2022, others property related taxes.
Changes in the application of the Cadastral Reference Value
With the entry into force of Law 11/2021, on January 1, 2022, there were significant changes in the calculation and application of the cadastral reference value. Now, the General Directorate of the Cadastre calculates this value from the purchase-sale prices provided by notaries and registrars, disregarding the state of the property, a factor that used to be relevant in determining this value.
However, this new method has a weakness: all homes located in the same building and floor are considered to be of equal value, without considering the peculiarities of each one, such as the reforms carried out.
In addition, since January 2022, the cadastral reference value is used as the tax base to calculate taxes related to inheritances, buying second hand homes and property donations. This could imply an increase in the Property Transfer Tax (ITP), the Inheritance and Gift Tax and the Wealth Tax. However, this change only affects properties acquired from January 2022, without retroactive effect.
Considerations to take into account
The cadastral reference value now constitutes the minimum for which it is taxed, even when the transaction of a property is carried out for a lower value. In addition, the taxpayer must pay taxes based on the value registered in the Cadastre, and if this requirement is not met, he could face sanctions.
To consult the cadastral reference value of a property, you can access the Electronic Office of the Cadastre through an official digital identification method. In this portal, when entering the requested information of the property, you will be able to find its cadastral value.
The cadastral reference value is an essential indicator that determines significant amounts in the form of taxes. Therefore, it is important to take it into account in any real estate transaction and stay up to date on changes in tax regulations.
