What is the valor catastral in Spain?

Taxes Wed, 30 Apr 2014
What is the valor catastral in Spain

The valor catastral is the rateable value of a property in Spain and is used to caculate property taxes. In some cases if there is no valor catastral, the purchase price of the property is used for the calculation. However, in our experience, this usually results in a higher tax being levied than if the valor catastral had been used.

How is the valor catastral calculated?

The property is inspected according to its size, condition, location, title, lease details, purchase price, cost of improvements, construction cost and comparative local evidence.

Following this, a report is compiled on the property and the valuer assesses the rateable value (valor catastral). The rateable value is the estimated value of the property related to November 1988. It is then adjusted by a percentage to make it relative to other rateable values in the Valuation Lists that have been recently assessed.

The completed reports are held in the Valuation Office. An example of a Rateable Valuation (RV) might include:

Estimated rental value as at November 1988 €5,000
Adjusted by percentage x 0.5%
Rateable Value (RV) €25.00

A better option than the purchase price

Using the valor catastral does usually lead to a lower amount of tax to be paid. So, for example:

Property bought for 149,000 euros (Malaga)
Valor Catastral 59,807.50 euros
Non-resident tax calculated
by property price 202.83 euros
Non-resident tax calculated
by valor catastral 162.83 euros

As you can see in this example, there is a significant difference between the purchase price of the property and the valor catastral, leading to a difference in the non-resident property tax to be paid. Of course, it is important to remember that this is an example only and the valor catastral varies from region to region.

However, when calculating your non-resident taxes in Spain we always request the valor catastral in order to ensure the cheapest option for our clients.

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