Spain Explained

The Valor Catastral

What attracted you to the property you bought in Spain? Was it the number of rooms or the size of the plot? Was it the proximity to local shops and bars or the fact that you have a large patio that takes the sun in the morning?

All of these features that can influence our decision to buy a property can also be influential when it comes to determining the valor catastral. The Valor Catastral is the rateable value of your property. Differences in the Valor Catastral can lead to differences in the amount of IBI or council tax that is payable on properties that are very similar and even perhaps on adjacent plots.

Before getting into it, we would like to remind you that taxes in Spain can be complicated and you could be subject to fines or penalties if you miss a deadline or don’t do your taxes properly. Advisably, you should seek fiscal advice from an expert to avoid possible complications.

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The amount of Spanish council tax you pay comes from a combination of:

  • Your valor catastral
  • The tax rate charged by the town hall

You can find out exactly what your valor catastral is from looking at your IBI (Impuesto sobre Bienes Inmuebles) bill or your receipt if you operate online banking. The value was registered at the Cadastral Registry when your property was built. This is a different registry from the Land Registry and is usually located either at your town hall or SUMA if you live in the Alicante region.

The valor catastral increases annually in line with inflation. It is affected by many different factors according to information that will have been supplied by your builder such as your proximity to the road or main entrance. It is occasionally reviewed on an area-wide basis approximately every 10 years. The length of time inbetween reviews means that it can take a sudden leap, usually upwards.

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The other important factor in calculating your IBI property tax is how much your town hall charges.  This can vary enormously within the range of 0.4% and 1.17%. As with many aspects of life in Spain, it is very difficult to generalise and you should make sure you are aware of the situation in the locality where you purchase your property.

The valor catastral is an important figure when it comes to calculating your non-resident income tax. It is usually much lower than the real market value and using this in a calculation gives you a lower level of tax to pay.

To help navigate the bureaucracy of the Spanish tax system, our dedicated advisers are on hand to help at every step of the way. Contact us and we will offer you a free consultation without obligation.

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4 comments

Arthur

19 September, 2015 1:54 am

Just received today Friday
Just received today Friday 18th Sept by email. Carta de Pago en Voluntria IMPTO BIENES INMUEBLES URBANA from Town Hall.Ref Catastral.
They want from me 599.23 euros and need to pay be 02/10/2015. 2 weeks notice.

I have looked at previous years on my bank statements and can not find anything similar.

Any advice if this is an annual bill that needs to be paid.

Suzanne O'Connell

29 September, 2015 7:43 am

Yes, this is IBI, council tax

Yes, this is IBI, council tax, which must be paid every year for a property. 

Jennifer Berry

3 October, 2017 12:40 pm

Hi
Hi

How can I submit my non resident income tax on my property myself? We have already paid our IBI and rubbish tax which was €900 and €90 x 2??

Suzanne O'Connell

1 November, 2017 8:38 pm

Hi Jennifer

Hi Jennifer

Thanks for your enquiry. We do have a non-resident income tax service that includes the payment of this tax as well as your IBI along with other year-round information and advice. We don't provide advice about completing the declaration for yourself.