The reference value of real estate subject to inheritance and transfer taxes changes. Last July, the Law of measures for the prevention and fight against fraud was approved. Among other novelties, it is established that all those taxpayers who acquire a property as from January 1, 2022 will have to declare the operation by the reference value of Cadastre, when this value is higher than the deed value. And they will have the burden of proof in case of disagreement.
Reference value of real estate for tax purposes
From this moment on, taxpayers will be obliged to pay tax at the reference value of the Cadastre. When acquiring a property, either in the Transfer Tax (ITP and AJD) or in the Inheritance and Gift Tax (ISyD).
Therefore, the General Directorate of the Cadastre is obliged to determine objectively and with the limit of the market value, from the data in the Cadastre, the reference value. Resulting from the analysis of the prices communicated by the public notaries in the real estate sales and purchases carried out. These values will be available for consultation in the Electronic Headquarters of the Cadastre as of January 1, 2022, once the procedure for their determination has been processed.
These new published indicators will constitute from January 1, 2022 the taxable base of the ITPyAJD and the ISyD. And they will be the values that will be taken as a reference for the calculation of the aforementioned taxes. This is so unless the value reflected in the deed is higher than this reference value. In which case, the value of the deed will be taken. This modification will take effect as from January 1, 2022 and will not be retroactive.
Limits to the reference value of real estate
The regulation itself establishes that the reference values will not exceed the market values. And, for this purpose, reduction factors fixed by the Ministerial Order published in the BOE will be applied. This order fixes the coefficient at 0.9 for urban and rustic properties.
“These are the coefficients applicable in the determination of the individualized reference values of the properties, which guarantee that these do not exceed the market values. These coefficients absorb market fluctuations and are used in the individualized calculation of both taxes.
Difference between cadastral value and reference value of properties
The reference value is different from the cadastral value and does not affect the current cadastral values. The cadastral value is determined by the General Laws of the State and serves as the taxable base for IBI and for the calculation of imputed income in the IRPF. It is also used for the Municipal Capital Gains Tax. It is currently a protected data that is not published and its revision is carried out by means of collective valuation procedures. While the reference value is determined each year simultaneously in all municipalities. And it serves as a basis for the ITP and AJD and the ISyD. It is not protected data, so it can be consulted through the Electronic Headquarters of the Cadastre.
They determine the average value in a specific area. The publication of this data is intended to provide transparency to the analysis of prices reported in real estate sales and purchases. These maps use modules of average value of real estate products representative of the areas of the territory, called “homogeneous territorial areas of valuation” that correspond to the average prices of the sales and purchases.
You can find the reference value you want to consult by entering several data, such as the DNI and the support number of the DNI or IDESP.
The purpose for which the reference value is needed is then requested. Information purposes, taxation in the Transfer Tax or taxation in the Inheritance and Gift Tax. The value date for which the data is needed and the cadastral reference of the property.
Filling the mentioned data, we will be able to visualize the descriptive data of the property. Cadastral reference, location, class, main use, value date and reference value. Besides visualizing the data we will be able to download a cadastral certificate of reference value.
It should be noted that the application of these reference values results in an indirect increase in the taxation of the ITPDyAJD and ISyD, since these values are higher than the minimum tax values that until December 31, 2021 were used, which were provided by each Autonomous Community.