CADASTRAL VALUE-VALOR CATASTRAL – WHAT IS AND HOW IS IT CALCULATED

The “Catastral Value” is a very important value which is calculated by the administration in each real estate in Spain. It is used to calculate Spanish tax like the IBI (Council Tax), and the IRPF (Income Tax), and others, as well as to calculate the FISCAL VALUE of the property in case of sales, for example. (Click here to see how the Fiscal Value is calculated)

The way in this is created is using by a process of evaluation made in each individual Town Hall/Municipality. This process is called “Ponencia de Valores”.

The “Ponencia de Valores” (PV) is the list of values for each individual real estate placed in the Municipal territory, and it is made by the Town Hall in conjunction with the Catastro office from the Province when:

• There is a new General Plan or any other planning development instrument approved
• There is a drastic alteration of the real estate market

The PV contains also the different criteria used by the administration to make the evaluation, taking into account:

o The exact location of the property and the urbanistic considerations and equipment on the environment.

o The theorical costs from the materials used in the different constructions, fees from builders, electricians, and other professionals used in the construction process, etc,

o Market circumstances

In general, the cadastral value of real estate may not exceed the market value.

So, when there is a PV approved, then it is considered that the Cadastral Values for all the properties in the area are “reviewed/modified” (in Spanish “revisados”).

In the Valencia/Murcia region, the Town Halls that have “reviewed” the Cadastral value in the recent years 2008-2018

UPDATE OF CADASTRAL VALUES:

Cadastral values ​​can be updated annually by applying coefficients approved by the corresponding General State Budget Law (“Ley de Presupuestos Generales del Estado”)which is approved every year by the government. This decision “increases” or “reduces” the cadastral values of the properties in a determinate municipality by direct decision by the government.

The way in which this is done is assigning a determinate “coefficient” to the Cadastral value of the property.

Example: If the decision of the Government in 2019 is to increase the values of the properties in, for example, Benidorm, with a 10 %, then, they may include in the “Ley de Presupuestos” a coeficient  of 1,1 in order to increase the values of the Benidorm’s properties.

So, in a particular property with assigned Cadastral Value 35.000 EUR, then, the value can be increased a 10 % instructing to apply the formula: 35.000 *1,1 (coeficient for Benidorm) = 38.500 EUR. So, although the cadastral value of the property will be always 35.000 EUR (till this is not reviewed using the PV instrument), the “updated” value for the year 2019 will be 38.500 EUR. This last value will be the one to be used in the calculation of the different taxes in Spain.

You may consult which is the “coefficient” assigned to your municipality from the official Catastro site: http://www.catastro.meh.es/esp/coeficientes_ponencias.asp

In December 2017, the Spanish Government, in the last Spanish “Ley de Presupuestos”, updated the cadastral values ​​in more than 1.800 municipalities:

So, as conclusion:

The Catastral Value is created by the Catastro office in conjunction with the Town Hall of the local Municipality, and may be modified by the Government using the yearly “Ley de Presupuestos Generales del Estado”.