Discover how to check the cadastral value of a home and know what type of taxes to pay based on its value.
When you are looking for a flat to buy or have a property to sell and you enter fully into the real estate world, you begin to hear many concepts and terminologies that seem new to you or do not fully understand … The IBI, the APR, the Euribor, the easement, cadastral value, etc.
Knowing these concepts will help you better understand the processes and steps you must follow and complete procedures with more agility.
With which, if you are at the time of selling your house and you need to know the cadastral value of the property, as well as the amounts that you will have to pay taxes and others, you will probably have to learn as much more information as possible about the cadastral value.
For this reason, at Kansas, we will solve your doubts. In this article, we will explain to you what the cadastral value is, what it is for, how it can be calculated, where we can find it, and how everything related to it can be interpreted. Are you ready for this master class on how to check the cadastral value of a home? We started!
What is the cadastral value?
When we speak of the cadastral value, we refer to an administrative type registry that depends on the Ministry of Finance and Public Function and is used to register all properties, whether rustic or urban, based on the data in the Real Estate Cadastre.
It serves to allow the differentiation and identification of your property, thus being considered as if it were a DNI.
Through this code that is established for the property, many of the taxes that have to be paid annually are calculated, as well as the economic value of the home, among others that we will see below.
It is a unique, mandatory and free value that is linked to a specific property to know everything about that home and to depend on the type that it is, you will need to do some cadastral or other procedures for its correct operation.
How the cadastral value is calculated
Now that we know how important it is to understand the cadastral value of our property, the next thing we must find out is how this value is calculated.
Generically, the cadastral value of a home is calculated based on the value of its land, the construction value, unique charges or inadequacy of the building and the land and different criteria specified in the regulations of each municipality.
The value of the land
For the value of the land, the following should be taken into account:
- The number of facades and their length.
- The bottom of the plot and its irregular shape and the surface area other than the minimum required by urban planning.
- The impossibility of temporary building due to antiquity or the condition of preserving the land for the construction of VPO.
Another factor to consider when determining the cadastral value is knowing its construction value, which will be determined by:
- Its age
- Its use
- the level of reform and state of conservation.
However, several factors influence when determining the cadastral value of a property.
Other aspects that affect the cadastral value of a property
Among the factors already mentioned to take into account to know and calculate the cadastral value of a property, those that are related to the location of the property, the characteristics of the soil, or the costs of construction material should be highlighted, with which other aspects to consider are:
- The location of the farm
- The productivity of the area
- Professional fees
- The historical or patrimonial character
- Production expenses and profits from business activity
- The quality and age of the building
- The exploitation of the land
- Urban circumstances
- Market value
Modifications and discrepancies:
As in everything, the value of things wither with the passage of time, and nothing lasts forever. In the case of the cadastral value, you should know that it will not change for up to a decade regularly. This is because due to administrative changes and necessary updates by other buildings and buildings in the municipality where it is located.
However, on your account, you must notify any modification you make to the property and, in this case, affect the cadastral description and its value.
For example, if you carry out reforms, separate your property in two, or build a swimming pool, this will surely cause the property’s cadastral value to increase, which is why it is important that the change be notified.
In turn, if you see that you disagree at the time of paying taxes and everything is due to a misallocation of the cadastral value to your property, you should notify it and make sure of your cadastral value with a technical architect.
If at that time any discrepancy or inconsistency is seen, according to the values referred to by the Administration, a claim may be made.
Differences between cadastral value and market value
If you look at it, the last value that we have pointed out in the list of the factors that influence the cadastral value is the market value.
At this point, we are going to make a special mention because sometimes the cadastral value is confused with the market value, and I have to tell you that they are different things.
As we have said, the cadastral value is a value that is assigned to a property imposed by the Administration, taking into account the matters of the land and construction and everything mentioned above.
On the other hand, the market value, or also known, the market value, is that value that someone is willing to pay for a home. It is the price at which a property could be sold, taking into account the characteristics and area in which it is located, through a prior appraisal and a private contract between the selling party and the buying party of the home itself.
Likewise, taking these differences into account, the cadastral value can never be higher than the market value. Although it is a complicated requirement, the Ministry of Finance has already set a market reference coefficient of 0.5 that has been approved condition is fulfilled.