Spain Explained

What is the valor catastral in Spain?

The valor catastral is the rateable value of a property in Spain and is used to caculate property taxes. In some cases if there is no valor catastral, the purchase price of the property is used for the calculation. However, in our experience, this usually results in a higher tax being levied than if the valor catastral had been used.

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How is the valor catastral calculated?

The property is inspected according to its size, condition, location, title, lease details, purchase price, cost of improvements, construction cost and comparative local evidence.

Following this, a report is compiled on the property and the valuer assesses the rateable value (valor catastral). The rateable value is the estimated value of the property related to November 1988. It is then adjusted by a percentage to make it relative to other rateable values in the Valuation Lists that have been recently assessed.

The completed reports are held in the Valuation Office. An example of a Rateable Valuation (RV) might include:

Estimated rental value as at November 1988€5,000
Adjusted by percentagex 0.5%
Rateable Value (RV)€25.00

A better option than the purchase price

Using the valor catastral does usually lead to a lower amount of tax to be paid. So, for example:

Property bought for149,000 euros (Malaga)
Valor Catastral59,807.50 euros
Non-resident tax calculated
by property price202.83 euros
Non-resident tax calculated
by valor catastral162.83 euros
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As you can see in this example, there is a significant difference between the purchase price of the property and the valor catastral, leading to a difference in the non-resident property tax to be paid. Of course, it is important to remember that this is an example only and the valor catastral varies from region to region.

However, when calculating your non-resident taxes in Spain we always request the valor catastral in order to ensure the cheapest option for our clients.

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16 comments

andy

2 August, 2014 9:11 am

Hi there, interesting read
Hi there, interesting read thank you. We are looking at purchasing a bank repo on the costa blanca. We are paying eur 130000 for the house. There have been some illegal extensions built which are not in the deeds at the moment (might be relevant for the following question?). The house has been valued at approx 170.000 eur

We are residents and we will be taxed at 10% VAT when completing the purchase which is 13.000 VAT. Somebody told us that the town hall take the valour cadastral and multiply it by 3,8 in our area (Torrevieja). the difference would have to be paid. So for example, valor cadastral is 50.000, 50.000×3,8=190.000 IVA is then 19.000. A difference of 6.000 IVA we would have to pay some weeks after completion.

Is this correct?

admin

5 August, 2014 12:39 pm

Hi Andy

Hi Andy

Thanks for your query. This isn't far off. You need to be aware that the co-efficient for Torrevieja for purchases during 2014 is 1,67 not 3,8. This means that the calculation would be lower than that stated. However, this is only one of the many ways in which they can calculate the value, so it doesn't guarantee that you will or will not receive a complementary tax demand. It does give you a good idea though. 

bren

2 February, 2015 9:34 pm

Trying to make sense of the
Trying to make sense of the property sale procedure and costs incurred for the seller , other than the expense of closing my mortgage. Firstly,if I took out 93,000 eur mortgage and now owe 77,000 eur approx, what tax, if any, am I liable for? Furthermore, what role does the valor catastral play for me, if any, in terms of taxes etc? It was valued at 17,000 in the last IBI bill, and the sale price of my property is 77,000eur.

admin

3 February, 2015 4:12 pm

Dear Bren

Dear Bren

Thanks for your question. It is difficult to give a specific cost on the basis of the information you have given. However, I can give you a general idea about the taxes and expenses you will have to pay. If you are a non-resident there will be a 3% retention of funds that you can claim back later by submitting form 210H within three months of the sale. For non-residents the capital gains tax is 20% of the profit made on the sale. 

Payment of capital gains tax by residents is dependent on whether the property is their main residence and if they are investing the capital in another main residence. 

You will have to pay approximately 600€ for the cancellation of your mortgage. It is the seller's responsibility to pay the Plusvalia tax. How much this is will depend on the exact date when you bought, the date of the sale, the valor catastral and where the property is in Spain. 

There can be additional costs. So, for example, many properties do not have a habitation certificate and this has to be applied for. Applying for this certificate can be as much as 600€. You will also need to account for lawyers' fees and any unpaid bills there are linked to the property. 

Gill

2 June, 2015 11:30 am

Hi.
Hi.
Can you give me a rough estimate of how much tax I will have to pay on a property that was bought for 64,000 euros in 1998 and has just been sold subject to contract for 125,000 euros.
Thank you

Suzanne O'Connell

11 June, 2015 1:29 pm

Hi Gill

Hi Gill

I'm not too sure which tax you are asking about here. If you are talking about capital gains then it is calculated through deducting the total purchase price (purchase price – expenses) from the net sale price (sale price – expenses). Non-residents then pay 19% and residents 21% for the first 6,000€ of profit and 25% for any profit between 6,000€ and 24,000€ and 27% for any profit above 24,000€. 

 

Mick Renwick

14 October, 2015 5:24 pm

Hi, can anyone help me, we
Hi, can anyone help me, we are buying a property in Calpe and are a bit concerned as to how much the ITP would be, we are buying for €73000 and have been advised the value has been estimated at over €195,000 by the tax office based on a rateable value of €62,200. Has this been worked out correctly because the difference is massive? I don’t know how to work out the valuation based on the rateable valuation
Many thanks

Suzanne O'Connell

15 October, 2015 9:46 am

Hi Mick

Hi Mick

Thanks for your question. Calpe has a coefficient of about 3,14 which means that these figures are roughly correct. I calculated a value of €195,308 from the value of €62,200.

You need to be aware that there is a strong chance of you being charged complementary tax on this property. The tax would be 10% of the difference between the tax office's value and the price at which you're buying the property for. So you would be wise to budget for this too. 

P Orr

21 March, 2016 12:45 pm

I have recently bought an
I have recently bought an appartment in Almoradi, Alicante, 03169. The selling price was 60,000 Euros we paid approx 69,000 euros inc taxes. I am now being asked to pay another almost 1,000euros as they say it was undervalued. Would this be correct I believe the catastral value to be 70,000 euros

Suzanne O'Connell

22 March, 2016 8:43 am

Hi 

Hi 

It is difficult to say exactly without having more details. However, it does sound about right and although €1,000 is still a large amount it is not really worth appealing 

Helen Grant

31 March, 2016 12:15 pm

Where is the office in Ronda
Where is the office in Ronda Malaga spain where i can get a catastral certicate for my property

Suzanne O'Connell

6 April, 2016 11:31 am

Hi Helen

Hi Helen

You should be able to get this information from your local town hall. 

S Mc

31 March, 2016 4:06 pm

Hi there I’m trying to
Hi there I’m trying to establish the value of a piece of land in Spain on the Costa Del Sol, in order to put together an offer to purchase it. Any ideas as to how I would calculate that? Someone told me that I’d need to get the valor cadastral? If you can give me any pointers would really appreciate it

Suzanne O'Connell

6 April, 2016 11:28 am

Hi 

Hi 

Yes, you would need to get the valor catastral and you should go to the local town hall where the land is situated to find this out. 

Jane Stickley-Woods

18 November, 2017 7:49 am

Hi
Hi
I wonder if you can help please… Assuming that I have properly understood previous posts, Who do we ask for the rateable value of a property in Murcia area? Do I need to ask the property owner direct or can I ask the town hall directly? And once I have that how can i find out the co-efficient for the specific area – and to use this as a multiplier for finding out the Valor Catastral… I would like to make sure that we pay the correct ITP rather than get stung for that later without the required budget.

Thanks loads in advance of any advice

Suzanne O'Connell

23 November, 2017 11:28 am

Hi

Hi

The rateable value is set down by the Catastro Office and is obtained from the IBI receipt. You can also go to either Catastro or the town hall to obtain it.