Constitutional Court reviews the cadastral reference value
The Spanish Constitutional Court will soon review the legality of the cadastral reference value, which is used as the taxable base for key taxes such as Property Transfer Tax (ITP) and Inheritance and Gift Tax.
The case arises from a constitutional challenge filed by the High Court of Justice of Andalusia, questioning the methodology used to calculate this reference value. According to the court, the system may result in situations where the fiscal value of a property is higher than its actual market value, disregarding essential features such as the condition of the property, construction quality or specific characteristics.
Although no final ruling is expected at this stage, the date on which the judgment is issued will be decisive, as it may set the deadline for filing tax refund claims, as previously occurred with the municipal capital gains tax.
Since 2022, when purchasing a resale property or receiving a property through inheritance or donation, taxes are calculated based on the higher of the deed price or the cadastral reference value, which can significantly increase the tax burden.
👉 CTA:
If you have recently purchased a property or are planning a transaction, we recommend checking the cadastral reference value in advance.
At allcostabrava.com we can guide you and connect you with qualified legal and tax professionals.
The cadastral reference value can be checked:
online on the Cadastre website,
by phone,
or in person at the Cadastre offices, by prior appointment.
At allcostabrava.com, we will continue to closely monitor the development of this matter due to its direct impact on real estate transactions on the AllCostaBrava
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