How is the cadastral value of a home calculated?
The cadastral value of a home is the monetary value assigned to the property in the land registry records.
What is the 'Catastro'
The 'Catastro' is the Spanish name for the land registry which depends on the Ministry of Finance and records rustic, urban and special real estate assets along with their physical, legal and economic characteristics – in other words, their monetary value. As the official registry, it records all properties.
The characteristics recorded in the land registry include the location of the property, the land registry reference, the use or purpose of the property, the surface area, the floor plans, the quality of the constructions and the owner.
All this information is filed in the land registry under 20-character identifier code and is very valuable for any owner because a simple online consultation submitted through the land registry electronic office can provide all the details you need about your property.
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How is the cadastral value calculated?
The following factors are taken into account when calculating the cadastral value:
- The value of the property on the market
- The location of the property and its surroundings: the urban circumstances, the productivity of the region, land use, etc.
- The material characteristics of the building
The cadastral value is updated by applying a series of coefficients that are approved in the general state budget. It is rarely higher than the market price.
What is the cadastral value used for?
The cadastral value is used to calculate the taxes payable on your home:
- Municipal councils use the cadastral value to determine the property tax ('IBI') payable.
- It is also used to calculate the property transfer tax and represents between 6% and 10% in second-hand home purchases.
- The cadastral value is a crucial element of your tax return because although the primary residence and commercial properties do not generate any income for tax purposes, the Treasury does establish a levy for real estate income from all other urban properties.
How can I find out the cadastral value of my home?
You can check the cadastral value of your home on:
- Your property tax bill (IBI).
- You tax return.
- The electronic office of the land registry.
- The local branch of the land registry for your province.