The cadastral value of the real estate in Spain is calculated based on the data set included in the cadaster (the data inventory concerning all recorded immovable real estate) and consists of two parts: the land value and the building value (according to article 22 of the revised legislation text, “On the Immovable Property Cadaster”).
From time to time, officials conduct a revaluation of the cadaster in Spain—that is, they conduct the process of reassessing the cadastral value of the real estate in Spain. Not all elements of the database are subject to the reassessment process, however. At any one time, the reassessment includes only a certain array of objects united by some common feature, such as type, location, and so forth. The system of coefficients established allows the assessors to correct and unify the value of the objects included according to various characteristics. According to the current legislation, municipalities must carry out a reassessment of the cadastral value once every 10 years.
Criteria of the cadastral value calculation in Spain
The main criteria of the cadastral value calculation are the following:
For the land:
- length and number of sides to the plot;
- the nature of the surface, irregular shape, etc.;
- suitability/unsuitability of the plot for construction.
- type of use;
The coefficients that are applied simultaneously both to the land value and the building value include:
- wear (depreciation of the building) and unsuitability;
- individual features.
The cadastral value of the real estate in Spain that has been determined is then used for the calculation of the annual real estate tax, or Impuesto sobre Bienes Inmuebles (IBI). All owners of property located in the territory of Spain, both residents and non-residents alike, are obliged to pay this tax. In the case that an owner sells the real estate, the entity acting as owner as of January 1 is considered the taxpayer. Every municipality establishes its own tax calculation coefficient. On average, the coefficient amount may vary between 0.4-1.3%.
Therefore, in order to calculate real estate tax, one must multiply the cadastral value of the real estate by the coefficient applied in its particular municipality.
For more information on the cadastral value in Spain, contact our INEEDSpain company. Our managers will offer you detailed consultation concerning any possible questions.