Technical terms for home owners in Spain

If you are a home owner anywhere in the Spanish peninsula, you will doubtless have a grasp of the main taxes that, quite literally, come with the territory. Although it does take a while to get your head around the associated jargon, you will more than likely be aided by professional legal advice in Spain as part of the process.

VIVA is proud to collaborate with several recommended associates who specialise in breaking down this technical legal and financial language into manageable chunks in order to facilitate the processes of buying or selling property here on the Costa del Sol.

We also provide excellent explanations of key specialist terms, such as Valor Catastral (Catastral Value), IBI (Council Tax), Nota Simple (Land Registry report extract from the Title Deeds) and Plus Valia (Capital Gains Tax), as well as many others, on our brand new and improved website, meaning it’s the perfect place to start your research into costs associated with real estate transactions and financial and legal advice in Spain.

The first of these, the Catastral Value, is reviewed for each municipality in Spain annually and any variations are published in the Official State Bulletin (Boletín Oficial del Estado) in time for 1st January each year.

2019 Valor Catastral revisions

This time round, 1,177 municipalities have seen changes applied to the Catastral Value of the properties located within them, according to Royal Decree 27/2018, dated 28th December.

In total, 728 towns experienced a Valor Catastral increase, while 449 saw a decrease for the upcoming year, putting the average national percentage difference at +0.58% for those municipalities with revised values.

Decreases for Málaga province

While this figure may seem like the maintaining of the status quo and not particularly newsworthy – especially in the midst of climbing second hand property prices – it is the 26 municipalities in the province of Málaga that throw up a surprise.

All but one of these areas, including Casares, Casarabonela, Manilva, Antequera and Ronda, saw the Catastral Value of their homes fall, by either 3% or 7%, for the year to come.

How could this affect you?

The value decreases registered across the province of Málaga mean that, if you own a home in one of these 26 municipalities, you could end up paying less tax to the local council and the tax man over the course of 2019. Yippee!!

Since the Catastral Value is the basis for calculation for both the IBI and Capital Gains, the result is that you could pay less local council tax and, should you want to sell your property, you would pay a lower tax contribution if the asset has appreciated.

To see the full list of municipalities (article written in Spanish), click here.

Do you have any questions about the financial or legal implications of buying or selling property? Why not leave us a comment below and our experienced team will get back to you as soon as possible!