How to calculate the cadastral value of a property

Regardless of a property's appraisal value, all real estate has an official cadastral value registered for tax purposes. Find out more about this value here.

The land registry is an administrative registry governed by the Ministry of Finance that includes descriptions of rural and urban real estate, including properties of special characteristics (intended for the production of electric and gas power, oil refining, and nuclear facilities. dams, waterfalls, and reservoirs, including the basin and regulating reservoirs, except for those intended exclusively for irrigation, freeways, highways and toll road tunnels, airports, and commercial ports), in Spain, without prejudice to the provisions of the chartered regimes in the Basque Country and Navarre.

The land registry description of the property will include its physical, economic and legal characteristics, including its cadastral location and reference, surface area, use and purpose, crop or land use, quality of construction, graphical representation, cadastral value, and the registered owner with his/her tax identification number or, if applicable, foreigner's identification number. When the properties are coordinated with the Property Registration this circumstance will be added, together with its registration code.

The descriptive and graphic land registry certificate verifying the characteristics specified in the previous paragraph help owners to save time when they want to know the features of a property. Consulting the registry or requesting information on the value of a property can speed up the process.

In the following article, we explain certain details about the cadastral value and the complicated process of determining property assessment.

What is the purpose of the land registry?

The land registry has several assigned functions that are either carried out directly through the central services and authorities located in the different provinces and autonomous cities in Spain (except for the Basque Country and Navarre) or in collaboration with other administrations and public bodies.

When calculating the cadastral value of a property, the land registry assigns a monetary value based on its location, the construction value, and other additional criteria that we will explain below. This valuation is recorded with a 20-digit identification code which can be consulted directly and free of charge through the Online Land Registry Office.

The cadastral value is an essential piece of information for city councils, as it is used as the basis to set the Real Estate Tax (IBI). City councils use this information to set a tax.

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Factors to bear in mind when calculating the cadastral value

Determining the cadastral value of a property can be summarized as follows:

  • Firstly, the location and surroundings of the home are very important, including urban aspects, land use, productivity of the region, etc.
  • A second key aspect is related to the physical construction process, which includes aspects such as building costs, benefits for the contracting party, labor fees, taxes, use, quality, the age of the property, etc. If there are production costs and profits from the business activity, these are also included in the cadastral value of a property.
  • Similarly, other circumstances related to the market value are also taken into account.

In relation to this final point, the cadastral value cannot exceed the market value. In other words, the value recorded by the administration must also be lower than the amount resulting from any appraisals or purchase processes. However, this point encourages constant review of the cadastral value, which can be continuously updated based on the coefficients approved by the General State Budget Law.

How to calculate and find out the cadastral value

The 20-digit cadastral reference number enables you to obtain information about the property quickly. The details included in the land registry include the property value based on the current cost, variables by use, the quality of materials, state of repair, land use, and constructions.

Calculating the cadastral value is a free service. If a cadastral value has not yet been assigned to a property, it must be applied for. However, if you just want to find out the cadastral value, you can do so by contacting the Land Registry. It is worth knowing the cadastral value of a property as it is not only used for certain taxes, such as the Real Estate Tax (IBI), but it is also required for filing the annual tax return.

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The cadastral value of a property can be accessed easily by homeowners and authorized persons by presenting the following information in person. Cadastral information can be requested via three main channels: The Online Language Registry Office, at the Land Registry Office, or any land registry information point.

When a request is submitted through the Online Land Registry Office, users must access the platform identifying themselves with a digital stamp such as the electronic DNI. If the request is made in person at any of the authorized institutions, the applicant must submit documentation verifying ownership. There is also a fourth way to obtain the cadastral value if it is not urgent and the property is registered: This option involves waiting for the receipt of the Real Estate Tax (IBI) which indicates the cadastral value.

To gain a better understanding of a property's value - BBVA Valora

Remember that the cadastral value can never exceed the market value. Therefore, do not just focus on this value, but also consider the property's real market value. Use the BBVA Valora tool to get an idea of the approximate value of a property.

BBVA Valora is a tool that provides information about three essential aspects of any property with just three clicks: Its estimated cost, the surrounding neighborhood, and the financial impact of buying the property.

You can also download the app BBVA Valora View, que te ofrece la mejor información a la hora de buscar casa. Puedes obtener la tasación aproximada de cualquier vivienda sólo con enfocar la cámara de tu móvil, con los datos del valor catastral y de ofertas publicadas de características similares en la zona. Además, dispones de un mapa de la zona para comprobar el precio y también puedes obtener de forma muy sencilla el valor del barrio. Todo tipo de información útil para facilitar el proceso de que encuentres tu nueva casa.

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