The cadastral value is an administrative value which is used as a base or a point of reference for certain actions taken by the public administration:

• For fiscal purposes: property tax, income tax, capital tax and the urban land gains tax to name a few.
• For non-fiscal purposes: expropriation, urban assessment, certain aid programs, scholarships and public subsidies, etc.

Most significant characteristics

The cadastral value is calculated from information held in the Real Estate Cadastre.

• The market value is used as a reference and under no conditions may the cadastral value exceed this figure. This reference figure is calculated in a uniform manner by applying a coefficient that reduces the resulting Stated Value Document by 50%.
• The calculation process follows a specific, regulated real estate assessment procedure.
• The cadastral value is comprised of the land and construction values which are then corrected in function with the specific characteristics of the property.

Reductions

The net tax base for the property tax is the result of applying to the cadastral value a reduction which is applied as of the coming into force of the cadastral value revised. The amount of the reduction decreases annually until, after a period of ten years, the net tax base coincides with the cadastral value.

What are market studies for?

The object of these studies is to research and compile economic data of the urban real estate market with a view to establishing (in the Stated Value Document) the different values of land and construction which in turn are used for an assessment of each one of the properties registered in the Cadastre.

What is the Stated Value Document?

The Stated Value Document is the administrative document which contains the land and construction values, the assessment criteria and the correcting coefficients to be applied within the territorial limits in question. It also sets the limits of what is considered urban land and those precise elements needed to determine the cadastral values.

The Stated Value Documents are officially available to the public in order that they may be consulted in the event of a cadastral revision.

Land value

Urban land is considered:

• Land classified as urban as well as developed land included within the urban planning areas.
• Land with paved access and urban services.
• Land upon which urban construction is found.
• Those lots which are divided against agrarian legislation.

Assessment

Land is assessed in light of the urban circumstances affecting it with respect to its classification and qualification.

Land value is thus determined by the use permitted by municipal urban planning.

Building value

The following are considered urban constructions:

• Buildings, regardless of the construction material used, even when they are mobile given the nature of their construction.
• Commercial or industrial installations such as dikes, tanks, loading platforms, etc. that may be considered within the concept of a building.
• Urban construction and improvement such as esplanades and those whose purpose is to make use of open spaces.
• Dams, waterfalls and reservoirs (including beds).
• Any other types of constructions that are not specifically considered rural.

Assessment

Construction is valued in light of its current cost while mindful of its type, use, quality and historic-artistic nature. Age, use and condition are considered.

The unique nature of reform construction is also kept in mind.

Real estate Value

In the assessment process of a real estate (the sum of the land and construction values), certain circumstances are kept in mind:

• Unsuitability due to use or design or the condition of the interior.
• Level of protection as part of historical-artistic patrimony.
• Affected by urban development: future thoroughfare, expropriation, land division, not in tune with territorial planning, etc. Economic appreciation or depreciation.

How and why is the cadastral value changed?

Causes of value change

Cadastral value may change over time due to one or more of the following reasons:

• Development of market values
• Monetary depreciation
• Changes in municipal urban planning such as an increase or decrease in the surface area of a lot that can be developed, change in land classification or qualification, etc.
• Change in the use being made of the building.
• Physical changes undergone by real estates as a result of new construction, rehabilitation, demolition, aggregation, segregation, etc.

Procedures

The change in value is brought about through one of the following mechanisms depending upon the prevailing circumstances:

• Updating. Automatic procedure through the application of coefficients established by the different General State Budget Laws and which normally coincide with the C.P.I. forecast for each year.

This update is not applied in those municipalities whose last cadastral revision was in 1997 or later.

• Cadastral revision. Procedure by which a new cadastral value is assigned to all real estates in a particular municipality. The law stipulates that an cadastral revision should be made every ten years.
• Modification. Procedure by which a new cadastral value is assigned,normally to part of the real estates of the municipality.

• Appraisal of property due to a change in its use or a modification of its physical characteristics.

You have the right to:

• A Cadastre which accurately describes the physical, legal and economic characteristics of all of the real estate of which you are a titleholder.
• A proper assessment of all of your properties.
• Be informed of the elements and criteria used in the assessment process.