Remember when your mother would say something that, no matter how hard you looked, you couldn't find a decent answer for? Well, the cadastral value works more or less the same way. Why? Because its main function is to provide an objective valuation of real estate . And that's what makes it irrefutable: the objective valuation.
No, don't think that's calculated arbitrarily; there are three things, among many others, that we have to take into account: the value of the land on which the house is located, the surface area it occupies, and the value of the construction.
In addition to the cadastral value, there is the reference value and the market value.
Before continuing, we need to understand that the cadastral value is one of the indicators that determine the price of a property, but closely linked to it are the reference value and the market value.
Without a doubt, you need a lot of courage when it comes to houses!
The reference value uses the average prices of actual sales and purchases, and the market value is just that, the prices set by supply and demand.
Comparison between cadastral value, reference value and market value
They say three's a crowd, but in this case, each one plays an important role in certain situations:
| Concept | What is | What is it used for? | Fiscal impact |
| Cadastral value | Value assigned by the Cadastre taking into account characteristics of the property (location, age, use, etc.). | It is used for calculating local taxes such as IBI, municipal capital gains tax and other municipal taxes. | It is usually the lowest of the three values. A higher cadastral value increases the property tax (IBI) and other municipal taxes. |
| Reference value | Value set by the General Directorate of the Cadastre using average prices of actual sales. | It is used as the minimum taxable base for state taxes related to transfers: ITP, AJD and ISD (inheritances and donations). | If the declared value in a transaction is less than the reference value, the Tax Authorities may require tax to be paid on the reference value. |
| Market value | The actual price at which a property could be sold under normal conditions, determined by supply and demand. | It is used in appraisals, real estate valuations, actual sales and negotiations between individuals or entities. | It is not used directly as a tax base, but it can influence reviews, valuations, financing and discrepancies with the tax authorities if an unusually low value is declared. |
But where does this cadastral value come from?
If we're going to start talking about the land registry, let's begin with our country and its governmental structure. Within the presidency, we have a portfolio of ministries, and among them is the Ministry of Finance and Public Administration.
Directly from them, through the General Directorate of the Cadastre, hangs the Cadastral Value Office.
This agency is responsible for regulating the Real Estate Cadastre Law, and all real estate properties within the national territory are registered there, whether they are rural, urban, or have special characteristics.
They are responsible for calculating the value of each property and, in addition, for establishing and maintaining the cadastral value of real estate.
At this point, we can't overlook one of those indicators that serves as a reference. Do you know which one it might be? Here are some clues: it starts with "I", continues with "B", and... yes, it's the famous IBI (Property Tax)!
From now on, you need to keep this information in mind because it will be very relevant.
How to check the cadastral value of a property
Checking your cadastral questions is very easy; in fact, the Cadastre Office offers several ways to do so. If you're someone who needs a plan A, B, and C, here are different options to find the information you're looking for:
| Plan / Access | Description | How / Resources | Type of information available |
| Plan A | Check the IBI receipt. | Property tax receipt that arrives at the address. | Cadastral value of the property. |
| Plan B | Go to the Cadastre Office to check the cadastral value. | In-person at the office; various consultation methods available. | Full cadastral value of the property, property registry. |
| Plan C | Consult without leaving home. | Electronic Headquarters of the Cadastre (public information). | Basic data: location, cadastral reference, surface area, use or purpose, age. |
| Plan D | Access private property information online. | Electronic Cadastre Office with identification (X509 digital certificate or Cl@ve). | Protected data: owners, detailed cadastral value (land, construction), full identification of owners. |
| Requirements for authorized access | Be the registered owner or authorized person. | X509 type digital certificate to access properties in the owner's name. | Full cadastral value, ownership details, and any information associated with the property. |
| Access without certificate | Consult basic information about any property. | Using cadastral reference or address in the Electronic Office. | Surface area, use, purpose, age, cadastral reference; no owner data. |
Other ways to find out the cadastral value of a property: Cadastral Information Points
Remember when we told you about a "Plan E"? We know it's unlikely you have your property tax bill handy, and we understand you might prefer to check it more easily. Don't worry, there are other ways to find out the cadastral value of your property.
If you prefer a more in-person or personalized consultation, the Land Registry offers Cadastral Information Points. There you can access protected information about your properties and also request electronic certificates for any administrative procedure you may need.
Do you have Google Maps handy? Enter "Cadastral Information Points" as your destination and, once there and after completing the application, you will be able to access the protected information of the properties you own.
Before you go to the next town or cross half the country, it's best to consult the interactive map of Cadastre Offices (link catastro-virtual.es) to find the nearest one.
In addition, some city councils and provincial councils have centers where all procedures related to the Cadastre can be carried out, which further facilitates the process without having to travel far.
Finally, if you prefer direct contact, there is the Cadastre Direct Line , a telephone service that will allow you to make inquiries or manage procedures quickly and easily.
How to calculate the cadastral value of a property
We've reached the part where we explain how to calculate the cadastral value . Get out your pencil, paper, and calculator, because we're going to do some multiplication.
What factors will we take into account? Of the values we have discussed previously, we will start with two: the value of the land and the value of the construction .
To calculate the value of the land, we multiply the surface area of the land by its basic value, and then multiply that result by correction coefficients.
We're not mind readers, but we have a feeling you want to know what the correction factors are that we're talking about. Here are a few of them!
- Location
- Use (residential, commercial…)
- Age of urban planning
- Plot depth
- Shape and size
- Urban planning situation.
Now, we take the other value as a reference, the construction cost. Here, we apply the formula: constructed area times production cost, and we multiply the result by coefficients. In this case, they are:
- Age of the building (depreciation)
- State of conservation
- Quality of materials
- Use of the property
- Improvements (elevator, swimming pool, garage, etc.)
If you are a very inquisitive person with a great capacity for reading bureaucratic texts, we leave you a link so you can take a look at the Real Estate Cadastre Law .
In this regulation, they explain how to calculate the exact value of an asset.
The cadastral value is undoubtedly a good reference point when considering buying a home. However, as we mentioned earlier, this value is usually lower than the market price because, among other reasons, the cadastral value is reviewed every ten years.
Because time moves fast, so does the value of a property. So get started calculating it now!
Did someone say location?
In the previous section, we saw that location is a relevant factor for the Land Registry. Therefore, depending on your municipality, the cadastral value may be modified in one way or another.
How is the cadastral value updated?
The cadastral value not only changes when a new valuation report is carried out, but also through mechanisms such as updating using state coefficients.
In this case, the Government can approve update coefficients that are applied to existing cadastral values. These coefficients, which we introduced in the previous section, serve to adjust the values of municipalities whose valuations are outdated.
In addition, there is the general collective review, which is the most in-depth update and which the Cadastre reviews in all properties taking into account the market price, the age of the buildings, urban reforms and changes in approach.
Thirdly, there are the regularizations and individualized checks, which are used when a property has undeclared characteristics, there is an error in the cadastral information or there are discrepancies detected by inspection.
The next way to update is through links to urban changes; in this case, if the urban development plan of the area changes, the cadastral value must be adjusted.
Finally, we will place the valuation procedures for physical alterations, which act on a modification of the property and which can also produce modifications in the cadastral value.
But what use is this cadastral value to me?
This is a typical question we ask ourselves after immersing ourselves in a new subject. And yes, in this case, the answer is very comprehensive. We're going to list all the situations in which the cadastral value will work in your favor:
| Tax | Situation in which it applies | How does the cadastral value influence it? |
| IBI (Property Tax) | Annual payment to the city council. | Main basis of calculation: The higher the cadastral value, the higher the IBI . |
| Municipal capital gains tax (IIVTNU) | Transfer of the property: sale, inheritance or donation . | The cadastral value of the land determines part of the tax . |
| Property Transfer Tax (ITP) | Buying a second-hand home. | It is used to check if the declared value matches the market value (although today the reference value prevails). |
| Documented Legal Acts (AJD) | Constitution of mortgages and other documented acts. | It can be used as a contrast value by the administration. |
| Personal Income Tax | Unrented properties. | A presumed income is imputed on the cadastral value that increases the base. |
| Wealth Tax | Annual asset declaration. | The property is valued at the highest of: cadastral value, acquisition value or value set by the Tax Office. |
What if I disagree with the cadastral value?
If we're talking about giving an objective valuation, there may be cases where the recipient of that valuation may disagree.
- The first thing we're going to advise you is that before making a claim, you compare the value of your property with that of similar properties in the same municipality. This will help you support your case with objective data.
- If, however, you still think the valuation is incorrect, we invite you to consult the details of the valuation on the Electronic Cadastre Office or at your municipal office.
- There, you can check everything: surface area, age, property characteristics and declared use.
- Secondly, file an administrative appeal with the Land Registry Office. You have two options:
- Cadastral review (art. 32 Real Estate Cadastre Law): to challenge the value directly.
- Economic-administrative claim: if the initial appeal is not satisfactory.
- From here, we get into timeframes: you normally have four months from the date of notification of the cadastral value to file an appeal. Yes, four months, but you know how time flies.
- To process the claim, you need deeds, plans, appraisals and reports that justify your claim.
- For the purpose of resolution, the Cadastre Management will review your case and may modify the cadastral value and considers that your claim is valid.
In summary, the Cadastre has the precision of an objective indicator, and a major relevance to the value of any real estate property.
