Catastral Value of Property (Valor Catastral). This is the official rated value of your property by Hacienda (Ministry of the Economy) on which various taxes are based. In addition to IBI, it impacts on a number of additional taxes, and some grants, as outlined below.
a. Rate at which you pay IBI. The Catastral Value is used as the base rate on which your IBI is calculated. The Catastral Value comprises the combined assessed value of your land and house. It follows that the higher your Catastral Value then the higher your IBI charge. The Catastral Value should broadly follow the market value – but can differ widely depending on when your land and house was last valued by Hacienda.
b. Liability to Death Duties.
c. Liability to Capital Assets Tax/Wealth Tax (Impuesto sobre el Patrimonio).
d. Tax on property owned by non-residents, such as Imputed Income Tax.
e. Municipal Capital Gains Tax is assessed, when you sell your property, on any increase in the value of your land since you bought it (Plus valia).
f. Eligibility to local council grants such as school transport or student grants. The higher your Valor Catastral the less chance you have of receiving assistance from grants.
It is in your interest to ensure that your Valor Catastral is not inflated above the actual market value. The current IBI Real campaign in Chiclana has brought together a large number of people to demand a full revaluation of Valor Catastral for every property. This was accepted by the local council at a pleno on 28 Jan 14 but they subsequently reneged on this decision. The last full valuation of properties in Chiclana was conducted in 2007/8 during the boom years. Since then, Spanish property prices have fallen dramatically but the Valor Catastral has not kept pace with reality and an inflated rate of IBI is being paid on every property.
IBI (Impuesto sobre Bienes Inmuebles)
IBI is an annual municipal real estate tax paid by both residents and non-residents. It provides the council with a major revenue stream and is used to help fund the following main functions:
a. Maintenance of council estate and pay of councillors and council employees.
b. Maintenance of schools.
c. Road maintenance.
d. Policia Local.
WARNING: This guide is not an authority and has been produced to remind you of the general impact of the Valor Catastral applied to your property and its relationship with the calculation of your IBI charge (and other taxes). Professional advice should be sought on specific matters of detail.