Start of main content

The cadastral value may generate an over taxation in the taxes it affects

| Events | Tax / Public and Regulatory Law / Urban Planning and Environmental Law

Conference: The review of cadastral values to optimise property taxation

The cadastral value established in the reports of values approved by the General Cadastre Directorate, especially if we are referring to special or architecturally complex buildings such as office buildings, business parks, commercial, industrial or logistical parks, do not correspond, in many cases, with the real characteristics of the properties, generating "an overlap in the property tax rate and in the rest of the taxes that this value affects".

This was made clear by Carlos Peña, partner in the area of Public and Regulatory Law at Andersen Tax & Legal, during the conference on The revision of cadastral values to optimise the taxation of property, in which the partners of the firm Javier Vinuesa and Antonio Ñudi also participated, together with José María Villanueva, architect and partner of ARQ, and José Vicente Morote, managing partner of the Public and Regulatory Law department.

During his speech, Carlos Peña indicated that the cadastral value established in the presentations of values approved by the General Directorate of Cadastre through its territorial management, bases its calculation on the calculation and consideration of the surfaces of the buildings and the application of a series of weighting coefficients related to the Presentation of Values, construction categories, uses, state of conservation, age, category of the street, repercussion, amongst others.

Thus, he maintained that, on many occasions, the cadastral value does not correspond to the real characteristics of the properties, generating an overlap in certain taxes, and therefore, he continued, "it is necessary to analyse and request, where appropriate, the rectification and correction of discrepancies and, where appropriate, the return of tax revenues unduly drawn as a result of such errors in the cadastral registration and description".

At this point, the partner of Andersen Tax & Legal explained the ways of challenging and revising both the papers on securities and the individual cadastral valuations themselves, as well as the tax settlements that take this valuation as a reference, such as, fundamentally, the property tax and the increase in value of urban land, popularly known as municipal capital gains, under the protection of the recent jurisprudence of the Supreme Court on the subject.

Javier Vinuesa, partner in the Tax Department of the firm, said that cadastral value is "the cornerstone of real estate taxation" and thus analysed its impact on other municipal, regional and state taxes, and analysed the conclusions drawn in the recent report of the Committee of Experts on the revision of the Local Financing Model.

Along the same lines, José María Villanueva referred to the technical aspects of determining the cadastral value with an exposition of real practical cases of different types of properties and the errors detected in their cadastral valuation.

End of main content