When we sell a house, the normal thing is that we establish a price, negotiate with the buyer and thus close the operation. This is called the market price, but it has nothing to do with the tax value of a home. It may seem strange to you, but this concept is very important in the real estate sector. If you want to know more about it, keep reading Housell and we will clarify all your doubts!
The first thing you should know is that the Treasury has a method to calculate this value in your home. Its function is to determine the price or value of a home for the payment of taxes in cases of sale and especially, when inheriting a house. We should not confuse it with the cadastral value , depending on the criteria of each municipality and the basis for the collection of municipal taxes (IBI). Its calculation includes several diverse and complex factors (location of the house, value of the land, value of the construction, of the materials or of market).
Due to the difficulty of calculating the cadastral value, the treasury is betting on its own methodology.
Why is it important that you know the tax value of your home?
If you do not know too well this value assigned by the Tax Agency, you could get several surprises.
After the brick boom in Spain, the market value of homes plummeted and many people had to sell their homes at heavy losses. During that time, it is common for the Treasury to put the tax value above the value of the sale. For example, if the sale was made for 150,000 euros and the tax value was set at 200,000, there was a mismatch in the payment of taxes:
The buying party pays the Patrimonial Transfer Tax . It is a tax levied on a percentage of the sale.
The buying party faces personal income tax (Personal Income Tax) . It is calculated progressively, through sections from lowest to highest income. Its function is fiscal redistribution, so that those with the most economic capacity 'support' those with the least.
On some occasions, this difference between the tax value and the market value was detected by the Tax Agency. Remember, sooner or later, the Treasury claims its own. To avoid these surprises, do the following: deed your home at least for the tax value. You will save yourself trouble and money, which in such a troubled time never hurts.
In the case of inheritances, the calculation is made through the Inheritance and Gift Tax . From here, the treasury establishes a value for each home, thus used to calculate the tax base of the tax.
How is the tax value of a property calculated?
In a country as decentralized as Spain, its calculation varies according to the autonomy in which we find ourselves. The General Tax Law is the instrument to calculate the tax value. Below are some examples of application by Autonomous Communities:Balearic Islands: in this case, the following portal offers three types of housing: urban, rustic and new construction. From here, the user must choose the minimum size of their home and from here, enter a tab with the following information: land value, condition of the house, useful and built area, storage rooms, pool area ...Castilla y León: in this case, we will put an example of a real calculation. In this case, we are going to choose a home located on Calle Soria 4, Aranda de Duero (Burgos). Once the characteristics of the house have been entered, let's imagine that it has 90 square meters of built area, of which 70 are useful. With all these data, we obtain that the average tax value in this area is 109,310 euros. You can perform this calculation here.Extremadura: a simple portal allows us to search for homes based on their location, the cadastral value and the use to which the property is intended.
