Changes in the valuation of real estate
MARA HERNNDEZ | DANIEL VIAA
Updated on Friday, 15 October 2021 – 02:13
Do the changes to the IBI that the owners pay affect? Why is Hacienda launching these changes now? We clarify the doubts and keys to change
Promotion of houses under construction in Valencia.Hacienda Changes the reference value of the properties that raise the taxes of Inheritance, ITP and Patrimony Taxation The Government sneaks into the anti-fraud law an increase in taxes in Inheritance, ITP and Patrimony
The Treasury published yesterday the maps that will help determine the reference values of real estate in 2022. Under this initiative is actually a change that affects the tax base on which some taxes related to real estate are calculated and that, in the practice, it will translate into increased pay for taxpayers. Is the IBI among them? We clarify this and other doubts below:
What is the change?
The Ministry of Finance changes the value with which the taxable base of taxes such as Patrimonial Transmissions, Patrimony and Successions is calculated. The change affects the value of the properties that will be taken as a reference to calculate said taxes. Until now, the real value of real estate was used for this purpose, but as of January 1, 2022 The new reference values created based on specific criteria will be taken as a guide.
Affect the IBI?
No, change nor reaches the Real Estate Tax because its tax base is not calculated with the real value, but with the cadastral value and said value is not affected by the reform.
Specifically, the reference value will only affect whoever acquires a property as of January 1, 2022, and at the same time has to pay taxes, either by the Tax on Patrimonial Transmissions and Documented Legal Acts, or by the Tax on Inheritance and Donations. . Likewise, it can only affect the Wealth Tax In what refers to properties acquired from the entry into force of the rule, in no case does it affect the pre-existing assets.
Why is the Government launching these changes?
There is a double reason: to increase tax collection and reduce litigation. Until now, many of these procedures were surrounded by some controversy since the parties consigned a value and the Administration, in case of disagreement, had to check it and prove the difference. As of the entry into force of the rule, this situation will be turned around and it will be the taxpayer who must prove that the reference value according to the Cadastre does not adjust to the value that the property really has.
Why is a minus factor established?
One of the points of the new rule establishes that the reference value may not exceed the market value and to guarantee it, the Treasury introduces a minus factor of 0.9 for both urban and rustic properties.
The reduction factor is the coefficient that is applied on the value of the assets to reduce your tax bill. By way of example, if a property has a market value of 200,000 euros, the taxable base on which the affected taxes will be calculated will be 180,000 euros.
How are the new reference values established?
Hacienda published yesterday the maps that will help determine them (you can consult them here). These maps represent the average behavior of real estate sale prices reported by public notaries. That is, they determine the average value in an area, “but they do not have to coincide with a neighborhood or with a district,” they clarify from the Ministry.
In these maps, modules of average value are assigned to representative real estate products by areas of the territory, called ‘homogeneous territorial areas of valuation’, which correspond to the average prices of sales.
In the case of urban real estate, the General Directorate of the Land Registry will calculate the reference value of a specific property taking into account various criteria, such as differences in quality, age and state of conservation between this property and the representative real estate product to which the average value module refers. . For this, the cadastral valuation regulations will be used temporarily.
In the case of rustic real estate without construction, the reference value will be calculated from the average value module, depending on its characteristics, and the corrective factors for location, agronomic and socioeconomic that are determined in the annual report of the corresponding real estate market.
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