New valuation of properties
Updated Thursday, 14 October 2021 – 16:51
Montero’s department denies that the modification entails a tax increase, but in practice most taxpayers will have to pay more
The Minister of Finance, Mara Jess Montero.EP Budgets 2022 Finance no longer guarantees the future of private pension plans
The Treasury has published this Thursday the maps that will help determine the reference values of real estate in 2022. Under this initiative there is actually a change that affects the tax base on which the tax is calculated. Inheritance tax and donations, the ITP and the Wealth Tax and that in practice will translate into an increase in the payment for taxpayers.
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 reference values published today by the department that leads Mara Jess Montero.
The Treasury denies that the change entails a tax increase, but in practice most taxpayers will have to pay more in these cases. The key lies in the definition of the values itself. The real value constitutes an abstract and difficult-to-quantify concept that is often assimilated to the cadastral value and both are usually below market value; The new indicators published by the Treasury are closer to the latter, higher, hence the tax increase forecasts that taxpayers will have to assume.
The new references are established taking as a starting point the average behavior of the prices of the sales of the properties reported by the public notaries. “That is, they determine the average value in an area, which does not have to coincide with a neighborhood or a district“They point from the Treasury.
However, here lies one of the risks and critical points of the change, since according to the experts consulted the value attributed to some properties could be very far from their real value and that would force the owner to pay amounts above what will correspond.
Until now, many of these procedures were surrounded by some controversy since the parties consigned a value and the Administration, in case of disagreement, must verify it and prove the difference, which has generated a high level of litigation for years. 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, which also opens the door to litigation against the Administration.
In order to try to hedge a part of this risk, the norm establishes that the reference values will not exceed the market values and to guarantee this, the Ministry has established the minus factor at 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, but in this case, according to Rubn Ra, coordinator of the group of experts on local haciendas and cadastre of Spanish Association of Tax Advisors (AEDAF), “is insufficient” due to the price differences that may exist in the same housing block, due to height or orientation, for example. “These differences can be greater than 25% for the same block, which is why the reduction factor is insufficient,” he points out.
How the value is calculated
The modification of the reference values was already advanced in the Law on Prevention and Anti-Fraud Measures, but its development is pending. And that is what the value maps published today by the Treasury in the electronic headquarters of the General Directorate of Cadastre.
In these maps, modules of average value are assigned to the representative real estate products by zones of the territory, called ‘homogeneous territorial areas of valuation’, which correspond to the average prices of the 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.
According to the criteria of
The Trust ProjectLearn moreSee links of interest Real Madrid – AS Monaco Bara – Olympiacos Piraeus