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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.
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DISCLAIMER
The opinions and comments expressed by contributors to this Blog are theirs alone and do not necessarily reflect the views of VIVA Homes Under the Sun Ltd, any of its associated companies, or employees; nor is VIVA to be held responsible or accountable for the accuracy of any of the information supplied.
James AngeloffFebruary 8, 2020 at 5:42 pm
My cadastral value notes plot size of 674m2. My deeds say the same but my council Technical planning office say plot size is 610m2. I physically measured property and it’s 610m2. What is the impact on my IBI bill and how do I get the correct figure into the cadastral value?
SimonFebruary 10, 2020 at 9:39 am
Alan DongworthDecember 16, 2019 at 8:07 pm
We have just been to pay our non resident tax and found out it has doubled since last year. When we queried this we were told that the tax had increased from 1.1% to 2%. I have tried looking online for this but can find no reference to this!
SimonDecember 17, 2019 at 9:18 am
Shirley FordDecember 8, 2019 at 2:19 pm
My husband and i own a house a local and are both in our 80s. I believe we would have no capital tax or inheritance tax to pay on our house but what of our local which we have had for 30 years.
SimonDecember 10, 2019 at 11:52 am
paulSeptember 30, 2019 at 10:08 am
I think my Catastral reference number may have changed. Is there a way I can confirm this (online) using my address and the original catastral (from my nota simple of 2008)? I would prefer not to have to phone from England!
SimonSeptember 30, 2019 at 11:48 am
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