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One of the main doubts generated by this new value for taxpayers is whether it is the same cadastral value, that of a lifetime. But these are different concepts. The new reference value is determined by the General Directorate of Cadastre and as we have explained previouslyit is based on the calculation from prices of real estate transactionsthat are made before a notary and depending on the cadastral characteristics of each property. This value will be determined year after year, simultaneously, in all municipalities.
On the other hand, the cadastral value is calculated based on the report of values of the corresponding municipality and the location of the property, the location within the city, age, quality of the construction, reforms or renovations in the building, or the state of conservation. This value is updated by the Budget Law, although not simultaneously or uniformly for all municipalities.
In both cases, the values are objective, that is, both the reference value and the cadastral value will value two dwellings on the same floor of a building, with the same surface area, even if one of them is renovated and with the highest qualities and the other not. That is, these two values do not take into account the circumstances of each property that are made in the home.