THE REFERENCE VALUE OF A PROPERTY.

What is the reference value?

The reference value is the valuation that the General Directorate of the Cadastre assigns to a property. It is calculated through an analysis of the prices of all sales made before a notary, as well as based on the data of each property listed in the property cadastre. It is important to note that the reference value cannot exceed the market value. To calculate this value, reduction coefficients are used that account for market fluctuations each year.

What is the reference value used for?

The reference value serves as the basis for calculating taxes when a person has to pay them, whether it is for the purchase of a property, in the case of an inheritance or donation of a property, and it is also used to calculate the Wealth Tax.

For the purchase of a property:

The regulation governing the tax on patrimonial transfers and documented legal acts (ITP and AJD) establishes that the taxable base of the tax will be the greater of the following values: the reference value or the value declared by the parties involved, or the price or agreed consideration.

Example: If you purchase a villa for €200,000 but its reference value in the cadastre is €250,000, the costs associated with the purchase will be calculated based on the €250,000 and not on the agreed price with the seller.

Similarly, if you buy the property for €250,000 but its reference value is €200,000, the costs will be calculated based on the €250,000.

For inheritance and donation taxes:

The same applies here; the regulation establishes that the taxable base will be the higher of the following values: the reference value or the value declared by the parties involved.

For Wealth Tax:

If you purchase a property based on the reference value, it will be taken into account to calculate the taxable base for the Wealth Tax. This regulation only applies to properties acquired from January 1, 2022, and does not apply to pre-existing assets.

Note: The minimum exempt amount for tax in Catalonia is €500,000. For residents, you will be taxed on your worldwide assets, and for non-residents, you will only be taxed on assets located in Catalonia.

And what if I disagree?

For the first two taxes, when taxpayers believe that the determination of the reference value has affected their legitimate interests, after submitting the corresponding self-assessment, they can request the rectification of the self-assessment to challenge the reference value. In other words, you must first pay, and then you can claim. The Catalan Tax Agency (ATC) will resolve the issue, with a mandatory, prior, and binding report from the General Directorate of the Cadastre, which will ratify or correct the reference value once the allegations and evidence submitted have been verified.

Does the reference value modify the cadastral valuation?

No, the reference value does not affect the current cadastral valuation of your property in any way. It has no impact on the property tax, nor on other taxes that use the cadastral valuation as the basis for assessment. The reference value is only used for certain tax calculations, but it remains independent of the cadastral valuation.