During the initial stages of buying a property in Spain, you will come across the term ‘cadastral value’. It does not matter whether you are interested in acquiring property in Spain or you are just expanding your knowledge base, understanding the meaning of this concept is very essential.
So, What is Cadastral Value? And How Do You Calculate It?
Before we define it, please note that knowing this value is very essential when interested in finding out the actual value of Spanish property and taxes you must pay. The Cadastral Value is the value given to a piece of property by the Spanish administration based on the land registry data. This value comes in very handy when calculating the taxes to be paid when acquiring and maintaining Spanish property. As a result, this concept gives an actual assessment of the capital value of a certain property.
This value is determined by certain factors that are established by the town where the property is situated. Ideally, this value is often lower than that property’s market value. Although it can be updated yearly depending on the current budget legislation. In no instance should it ever be higher than the market value.
The Importance of Understanding the Cadastral Value
As a foreigner looking to buy property in Spain, of what importance does the Cadastral Value have? Well, it gives you an overview of the information you will require before making a purchase. It also gives you a rough estimate of how much a purchase can cost you.
You should also know that no seller will accept a payment that is below the cadastral value. This, however, does not mean that there is no room for negotiations. Sellers struggling with taxes and debts will always be open to a lower price. Other than that, knowing the cadastral value significantly helps in comparing prices amongst properties. Having this value in mind will also help you negotiate for a better deal.
Taxes
Additionally, the cadastral value is also used to calculate the taxes you can expect to pay to both the local town hall and the Spanish government. When it comes to property tax, know that the cadastral value applies for both residents and non-residents.
How to Acquire this Information?
Since this information is of essential value when buying Spanish property, how do you get your hands on it? For starters, anyone can acquire this information as long as you are not interested in protected data. For you to acquire personal data such as the cadastral value and name of the owner of a property, you must have authorization, confirm that you are interested in knowing more about that property or be the owner of that property.
After gaining authorization or meet any of the above requirements such as being the owner, the cadastral value can be found in your annual real estate tax. The value can also be acquired from the townland registry officer. Carry your ID or passport to prove your identity. Alternatively, you can get the cadastral value from community websites. Since different locations have varying ways on how to acquire the cadastral value, make sure you follow the instructions.