The reference value is a crucial concept used to determine the amount of taxes associated with property transactions, such as Stamp Duty, Inheritance , Gift and Transfer Tax. It’s a value that is intended to be an objective and reliable measure of the property’s worth, and it plays a significant role in calculating the taxable base.

In Spain, the reference value is established based on certain criteria outlined by legal regulations. Here’s a summary of how this figure is determined:

1. Market Value Doctrine: The Spanish Supreme Court has established that, when there is a market for the dwelling in question, the “real value” coincides with the “market value.” In other words, the objective is to assess the value based on prevailing market conditions.
2. Cadastral Data Analysis: The Directorate General of Cadastre (Dirección General del Catastro) is responsible for determining it. They use data from the Cadastre, which is a public registry that provides information about properties. The analysis includes the prices reported by public notaries in real estate sale and purchase transactions.
3. Comparison and Certification: By analyzing market data and cadastral information, the Cadastre aims to determine it objectively and within the limits of the market value.
4. Taxable Base Determination: When a property transaction takes place, if the value declared by the parties involved or the agreed-upon price is higher than the reference value, the higher of these two values is taken as the taxable base for the calculation. If there is none available or certified by the Cadastre, the taxable base can be determined based on the value declared by the parties, the agreed price, or the market value.
5. Minimum Taxable Base: The figure is established as the minimum taxable base for Transfer, Inheritance, Gift or Stamp Duty (Impuesto de Transmisiones Patrimoniales, Actos Jurídicos Documentados, Impuesto sobre Sucesiones y Donaciones).
6. Checking the Reference Value: To check it, individuals can visit the Electronic Headquarters of the Cadastre (www1.sedecatastro.gob.es). This online platform allows taxpayers to certify the figure on a specific date. Access to the consultation requires identification using the National Identity Document, digital certificate, or digital signature.

Law firms specializing in property conveyancing like Cc Lawyers, can assist individuals in determining the reference value  in Alicante or other areas like Torrevieja.

If you’re unsure about this minimum value of a dwelling you’re interested in purchasing, you can provide relevant information such as the Cadastral number from your IBI (Impuesto sobre Bienes Inmuebles) receipt. The law firm can then manage the consultation process for you.

In summary, this value is a crucial factor in determining the taxable base for various property-related taxes in Spain. It’s intended to be an objective measure of a dwelling’s value based on market conditions and is established by analyzing data from the Cadastre.

From Cc  Lawyers providing service to clients in Alicante and other areas like Torrevieja or the Costablanca, we encourage you to contact our lawyers specialized in conveyancing where you have doubts about the home or second residence in Spain that you wish to purchase. Send us an IBI receipt showing the Cadastral number and our law firm will manage the consultation for you.

If you need to check for yourselves you can also do it in the Cadastro webpage where you can find the information in English here https://www1.sedecatastro.gob.es/Accesos/SECAccvr.aspx

Also, If you bought a bargain in Spain before 2022, the Spanish Treasury office might require you to pay extra! So what happens if the amount you paid was not the right one? They will require you to pay an extra amount according to their calculation. The tax office has up to 4 years to claim you to pay the difference.

If you receive the extra tax claim, you can appeal it. For appealing it you must get an appraisal, but if the tax authorities claim you the tax difference 3-4  years after you purchased it, the property value might have raised (renovations, higher market, etc.).

Cc Lawyers Alicante will check the minimum value of the property for you and will inform you if the sale price meets the tax office requirements so you know the exact tax that the purchase will cost you because knowing that information could make you go for one or another investment.

Checking the minimum value is included in our purchase service.