Obtain the (tax) reference value of a property?
Since January 1, 2022 there is a new calculation method, called the reference value, which can lead to an increase in tax on the purchase of real estate in Spain, the Patrimonial Transmission Tax (ITP).
In this article, we explain how to obtain this reference value. That is, the value determined by the tax authorities as the basis for calculating the ITP, the tax payable on the acquisition of real estate in Spain. This value also serves as the basis for the calculation of donations and inheritances.
THE NEW LAW 11/2021 OF JULY 9, 2021 AND ITS IMPACT ON REAL ESTATE TAXATION IN SPAIN
Law 11/2021 defines a new concept: the reference value (“valor de referencia”) of real estate. From 2022 this is the basis of calculation for real estate transactions. In particular acquisitions of old property and inheritances or donations. In the event that the reference value is higher than the acquisition value, it will lead to an increase in the taxation of the various taxes it affects: ITP for those who buy an old property, inheritance tax and donations and wealth tax (“Impuesto sobre el Patrimonio”).
Indeed, from 2022 for an old property, the buyer will pay tax on the highest value between the purchase value of the property and the tax reference value. Thus, the taxpayer does not pay tax on the acquisition value of the property, but on its tax value if this is greater than the purchase value.
In summary: in the best case, you pay the same tax as before; in the worst case, you will pay higher tax.
Example 1. Julien bought an old apartment in Empuriabrava in January 2022 for a value of 280,000 euros. The reference value determined by the Cadastre for this apartment is 300,000 euros. Before January 1, 2022, Julien would have paid an acquisition tax (ITP) of 10% on 280,000 euros, i.e. 28,000 euros. In 2022, Bruno will have to pay 10% of 300,000 euros, i.e. 30,000 euros, i.e. 2000 euros more!
Example 2. Sophie bought a villa in Rosas in January 2022 for a value of 320,000 euros. The reference value determined by the Cadastre for this villa is 290,000 euros. Before January 1, 2022, Sophie would have paid an ITP of 10% on 320,000 euros, i.e. 32,000 euros. In 2022, she will still have to pay 10% of 320,000 euros, or 32,000 euros. And this despite the fact that the reference value is lower than the purchase value.
This law is therefore favorable to the tax administration.
Attention, the reference value of the Cadastre has nothing to do with the cadastral value of a property!
HOW TO OBTAIN THE REFERENCE VALUE?
The reference value of each property is now available on the Cadastre's electronic site. Below we tell you how to get it.
To access it, you must have either a resident NIE or an electronic resident certificate, “certificado digital” or “Cl@ve”. For non-residents with NIE, we offer a solution at the end of this article.
- In any case, first access the cadastre website https://www1.sedecatastro.gob.es and then click on “valor de referencia”.
- The following page is displayed. Click on “Consulta de Valor de Referencia”.
- You can then use two methods:
either go through the NIE (the most practical method),
or use an electronic resident certificate, “certificado digital” or “Cl@ve” (less common method and reserved for residents).
If you use the NIE, you simply need to fill in your NIE number (in the "Numero de DNI / NIE" box) and your IXESP support number which can be found on your NIE card (in the "Número de soporte/NIE" box). IDESP/IXESP”)
Once the information is completed, you click on "Validar DNI / Soporte"
If you have a digital certificate or a digital key, you click on “Certificado digital” or “Cl@ve” respectively.
- You must first select a purpose (“Seleccione una finalidad”)
First choice: for information (“Efectos informativos”)
Second choice: taxation of ITP or IAJD ("Tributación en Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados") - This will be the case for example of a real estate acquisition
Third Choice: Inheritance or Donation Tax (“Tributación en Impuesto sobre Sucesiones y Donaciones”)
Fourth Choice: Other Choices ("Otras")
- Then the valuation date of the property (“Fecha de valor”) in dd/mm/yyyy format.
- The NIF box must be pre-filled with your NIE.
- Finally, you must indicate the Cadastral Reference of the property (“Referencia Catastral”) which is an alphanumeric code of 20 characters.
- Once the information has been completed, click on “Valor de referencia”
And you (finally) arrive at the page that shows you the Reference Value you are looking for!
If you click on “Certificado de Valor de Referencia”, you can then download a Reference Value Certificate in PDF format.
If you wish, in particular if you are a non-resident, we can send you the Reference Value Certificate in PDF format. To do this, send us an email to firstname.lastname@example.org with the exact address or cadastral reference of the property you are interested in, and we will be happy to send it to you.