In the world of real estate, the Fiscal value of a property it is a fundamental concept but often poorly understood. In this complete guide, we will explore what is the Fiscal value of a property, how it is calculated, the key differences between the tax value and the Market value, and much more.
If you are new to this topic, or you're just looking for better understanding of your tax obligations related to the property, from Living Kits we will inform you of everything you need.
Fiscal value of a property, Assessed value, Real Estate tax (IBI), Property valuation, Market value, Surplus city, Surveying real estate, Statement of income, Cadastre
In this post, we delve into:
What is the tax Value of a property?
The Fiscal value of a property it is the value that the tax authorities assigned to a property for tax purposes. It is important to note that this value may differ from the Market value of the property. While the Market value it is determined by what a buyer would be willing to pay for the property in an open market, the fiscal value is primarily used to calculate property taxes and other acts related to it.
Differences between tax value, assessed Value and market Value
The Assessed value it is an administrative value that is assigned to all the real estate urban and rural Spain, is determined by the Cadastre, which is a public agency under the Ministry of Finance and is calculated in function of a series of objective criteria, such as the location of the property, its surface, its antiquity and its structural characteristics. The Assessed value it is used to calculate the Real Estate tax (IBI), the Surplus city and other taxes.
On the other hand, the tax value is the value that the Tax Administration is assigned to a property for the calculation of taxes such as the Transmission of Heritage Onerous (TPO), Inheritance and gift Tax (ISD), stamp duty (AJD) and the Surplus city. It is calculated by taking as a basis the Assessed valuebut can be modified by the Tax Administration on a number of factors, such as the Market value of the property. IMPORTANT: The tax value can be challenged by the taxpayer if it considers that it does not fit the reality of the market.
Importance of tax value
The Fiscal value of a property it is of the utmost importance both for the owners as to the tax authorities. For owners, it determines the amount of taxes you must pay on the property. On the other hand, for the tax authorities, the tax value is crucial to calculate the taxes on the property and to ensure an equitable distribution of the tax burden among taxpayers.
How to calculate the tax Value of a property?
The calculation of the Fiscal value of a property may vary depending on the country and local regulations.
However, in general, taking into account several factors to determine this value:
Factors that influence tax value
- Location: The location of the property is one of the key factors that influence their tax value. The properties are located in urban areas or in areas with high demand tend to have a tax value higher than the properties in rural areas or less developed.
- Size and characteristics of the property: The size and the specific characteristics of the property, such as the number of bedrooms, baths, and additional amenities such as swimming pools or garages, they can also influence their tax value.
- Market value: Although the Market value not always coincides with the fiscal value, is often a significant factor in its determination. The tax authorities may use the Market value as a reference to calculate the tax value of a property.
Therefore, it is essential to review the Assessed value first and tax later that we assign to our properties.
Consultation of the fiscal Value of a property
In many countries, it is possible to check the fiscal value of a property through public records or in the local office of tax. This information can be useful for owners who wish to know the assessed value of your property, and plan their tax obligations, or even the change of use of local housing.
To know it we will have to go to the office (physical or virtual) of Finance of the Autonomous Community where they are located the property and request it, but basically it's calculated by taking as its starting point the Assessed value of the property and applying a multiplier based on their age.
Challenge of the fiscal Value of a property
In some cases, homeowners may consider the tax value assigned to your property is incorrect or unfair. In such situations, it is possible to contest the tax value and request a review by the tax authorities. Here's how to do it:
Deadlines and requirements for the challenge
The deadlines and requirements for the challenge Fiscal value of a property may vary according to the jurisdiction. Usually, you set a specific time limit within which the owners can file a claim against the tax value assigned to your property. It is important to familiarize yourself with these terms, and ensure that they meet all the requirements established by the tax authorities.
The time to challenge the assessed Value of a property varies according to the circumstances. Here are some important considerations:
- Self-assessment Submitted by the Taxpayer:
- If you have submitted a self-assessment (for example, in the case of an inheritance or donation), the term for contesting the tax value is 4 years from the presentation of the same1.
- Settlement Submitted by the Administration:
- If the administration sends the settlement (for example, in the case of the Property Tax – property tax (IBI), the term for appeal against the decision is 1 month from the receipt of the notification.
- Verification of Securities by the Treasury:
- In situations of checking values, the Treasury may notify a settlement proposal provisional based on a record of verification of values. In this case, is granted a period of 10 days to make allegations.
Remember that these times may vary according to the specific legislation in your autonomous community. It is always advisable to consult with a professional or check the local regulations to obtain accurate information about the time limit applicable in your particular case.
How to file a claim against the IBI
To challenge the Fiscal value of a property and request a review, the owners often have to submit a complaint to the local office of the tax or the tax administration are appropriate. This claim must include robust justification and documentation to support the request for a review of the tax value.
It is crucial to provide solid evidence to support the claim, such as appraisal reports, independent, comparative values of similar properties in the area, or any other relevant document that demonstrates that the tax value assigned is incorrect or unfair.
Tax value in the purchase of a property
The Fiscal value of a property it also plays an important role in the process of sale of a property. Here we explain how it affects this value in the transaction, and what taxes are involved:
Taxes levied on the sale
When you buy or sell a property, it is important to take into account any taxes that may be applied to the transaction. Between the taxes, the more common levied on the sale of a property are:
- Property transfer tax (ITP): This tax applies to transfers of property, second-hand and your rate can vary depending on the autonomous community in which the property is located.
- Value Added tax (VAT): In the case of the purchase of a new property, applies a VAT in place of the ITP. The rate of VAT may also vary according to the autonomous community.
- Surplus city: This tax is calculated on the increase in land value of the property and it is the responsibility of the seller.
Tax value of the inheritance
When there is an inheritance that includes real estate, it is important to understand how to calculate the tax value of these assets. Here we will explain to you what aspects you need to consider:
Inheritance tax and gift
The Inheritance tax, and Donations is the tribute levied on the transfer of assets and rights by inheritance, legacy or donation. In the case of immovable property, the taxable value of the inherited property is used to calculate the taxable amount of this tax. It is important to keep in mind that the amount of the tax can vary depending on the autonomous community, and the degree of relationship between the deceased and the heir.
Valuation of real estate in the inheritance
The tax value of the immovable property inherited is generally determined by using the Assessed value or Market value of the property at the time of death of the holder. This value is used as reference to calculate the tax on Inheritance and Donations, and can influence the amount of taxes you have to pay the heirs.
It is important to note that, in some cases, the heirs can request a review of the assessed value of the real estate legacy if you consider that this value is incorrect or unfair. To do this, it is necessary to file a claim with the tax authorities and provide the necessary documentation to support the request for review.
Frequently asked questions about the tax Value of a property
What is the Cadastre?
The Cadastre it is a public register that contains information about the ownership and characteristics of immovable property, as well as its Assessed value. This registry is managed by the Directorate-General of the Cadastre and serves as the basis for the determination of the assessed value of the real estate.
How can I get the certificate of the cadastral my home?
The certificate cadastral survey of a housing can be obtained in the office of the Cadastre corresponding to the location of the property or through the electronic headquarters of the Cadastre. This certificate provides detailed information about the property, including its reference to the cadastre, area, use, and Assessed value
What can I do if I do not agree with the assessed value of my property?
If you do not agree with the assessed value assigned to your property, you can object by filing a claim with your local tax authorities. It is important to provide solid evidence to support your claim, such as appraisal reports, independent or comparative values of similar properties in the area.
What do I need to file a claim against the PROPERTY?
To make a claim against the Real Estate tax (IBI)usually you will need to complete an official form provided by the tax authorities and submit documentation that supports your claim, such as appraisal reports or evidence of errors in the valuation of the building.
When do I pay the TAX?
The Real Estate tax (IBI) is paid annually and is usually issued a receipt of payment to the beginning of the year. The deadline to pay the IBI may vary depending on the autonomous community and the municipality, so it is important to consult with the local authorities to know the payment terms set forth.
What exemptions and rebates exist for the IBI?
Exemptions and deductions Real Estate tax (IBI) may vary depending on the autonomous community and the municipality. Some of the exemptions most common can be applied to the housing of protection official, rural properties or properties that are engaged in economic activities. The bonuses can be applied to large families, people with disability or homeowners who make energy improvements in their homes, among other cases.
Where can I get more information about the tax Value of a property?
If you wish to obtain more information about the Fiscal value of a propertythere are several sources where you can find useful resources and advice:
- Local tax office: The tax office in your area can provide you with specific information on the tax value of your property, as well as guidance on how to challenge or to submit complaints related to the IBI.
- Cadastre Real Estate: The Cadastre Real estate is an important source of information on the real estate property in Spain. You can access to cadastral data and obtain the certificate cadastral survey of your home through the electronic headquarters of the Cadastre.
- Legal and tax advice: Consult a legal advisor or attorney specializing in real estate can give you personalized advice on your tax obligations related to the tax value of your property and how to manage them effectively.
- Online resources: Also you can find a wide variety of online resources, such as articles, guides, and discussion forums can provide you with additional information about the tax value of real estate and how to calculate it.
Remember that it is important to stay informed and be aware of your tax obligations as a property owner. With the right information and the right advice, you can effectively manage your tax situation and make sure you meet your responsibilities tax.
Additional resources on the fiscal value of a property
For more information on the Fiscal value of a property and other issues related to real estate, we recommend you explore the following resources:
Links to websites and articles relevant
- Portal Cadastre: On the website of the Cadastre Real estate, you can find detailed information about the Assessed value of real estate, as well as access to the online office for consultations and procedures.
- Tax Agency: The website of the Tax Agency provides useful resources on taxes related to the real property, such as the capital gains TAX and Inheritance Tax, and Donations, as well as forms, and practice guides for the taxpayers.
- Forums and online communities: Participate in forums and online communities dedicated to the real estate ownership can provide you with the opportunity to share experiences and get advice from other owners and experts in the field.
In summary, the Fiscal value of a property it is an important concept that affects homeowners and other types of properties. To understand how this value is calculated, what your tax implications and how to object if it is necessary, it is essential to ensure effective management of your tax obligations.
We hope that this comprehensive guide has been useful to clarify any doubts you may have about the Fiscal value of a property and you have provided the necessary resources for more information and assistance in case of need.
Remember that the effective management of your tax obligations as a property owner it is essential to maintain the legality and avoid possible penalties.
