With the entry of 2022, a new dynamic calculation was also entered based on the value of the Cadastre to establish in this way the tax base of Transmissions, Inheritances or Patrimony as well as to proceed with the payment of taxes.
After analyzing the marked price in all the purchases and sales of real estate carried out before a Notary, it is determined by the General Directorate of the Cadastre.
The reference value will not be greater than the market value, a reduction factor is always applied.
Treasury is the body that sets the tax base with the greater of these amounts: the reference value or the registered value.
On the Cadastre website we can find the reference values of the houses, which are probably tax increases due to the new reference value makes the tax base to be taxed higher.
The value will be updated each year with the prices of the preceding exercise and will act as the minimum tax base on Patrimonial Transfer Taxes (ITP) and Documented Legal Acts (AJD), Inheritances and Donations, and Patrimony.
With this, we will obtain that taxes will be paid for the highest value. The ITP for real estate is different according to each Autonomous Community and depending on the taxable base, normally from 8 to 10%.
It is calculated at the same time in all municipalities, through average value modules, based on the prices of all real estate purchases.
Treasury subsequently applies a reduction coefficient of 0.9 which, we could say, will in practice mean a 10% reduction.
The reference value does not affect the current cadastral value nor does it have an effect on the Real Estate Tax, nor on the rest of the taxes that have the cadastral value as the tax base.
Although it will affect the Property Transfer tax and the Inheritance and Donations tax.
Taxes are established based on the highest valuation of the property between the reference value or that of the deed. The Treasury will collect these taxes on the valuation of the property that is higher, either the reference value or the deed. Only the reference value in terms of Heritage will be applied to properties that have been transferred from 2022.
The owners will also notice a substantial change: if the reference value is greater than the deed, they must declare the profit in their personal income tax and the seller will pay taxes according to the reference value set by the Treasury.
We can request the rectification of the self-assessment presented or file an appeal for reversal, before the Tax Administration, or an economic-administrative claim before the Regional Economic-Administrative Court, against the liquidation that, if applicable, is carried out by the Administration managing the tax.
The new owner is the one who must pay the ITP requested by the Administration and, later, request the rectification from the Tax Agency, thus having to demonstrate that the real value of the home is lower. That means having a lawyer and an appraisal of the house, with an approximate cost of 2000 euros.
At Palmer Alma Mediterranean we will be happy to answer any questions regarding this topic.
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