IBI – Valor Catastral

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This topic contains 5 replies, has 4 voices, and was last updated by Profile photo of Anonymous Anonymous 10 years, 2 months ago.

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  • #52332
    Profile photo of Anonymous
    Anonymous
    Participant

    We are interested in a property and have received a copy of the IBI from the agent, the property is a reform, the valor catastral stated is 11,132, the property is up for sale 200,000 Euros, does this seem correct, or does it seem that this is the figure before the property was reformed ?

    We are awaiting translation of documents

  • #66532
    Profile photo of Anonymous
    Anonymous
    Participant

    The catastral is similar to the rateable value that UK used to have, prior to the banding system they applied, so the value on paperwork and market price arent directly related.

  • #66533
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    Anonymous
    Participant

    A revaluation “should” occur whenever a property is extended, reformed etc. However, the revaluation is dependant on the information being given to the Catastro by the equivalent dept in the Ayuntamiento local to the property and the info being given to the Ayuntamiento in the first place by the owner!

    Once an escritura de obra nueva has been completed a copy should go to the catastro department of the Ayuntamiento who then passes the details to the provincial catastro office.

    Eventually a new valor catastral will be issued. The catastral record will also show the increased m2 if appropriate.

    Of course most people don’t bother, as a higher valor catastral = higher taxes, IBI etc.

    However, I have heard that there are periodic revaluations of properties being carried out by Catastro in some areas, resulting in requests for back taxes etc.

  • #66542
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks for your response

    Does it mean the property should be revalued prior to it being sold ? otherwise “we”would be responsible for the previous years taxes

    Would a vendor want to do this ? and would they get into trouble for not advising the authority of the reform, especially if it was done a few years ago ?

  • #66544
    Profile photo of Anonymous
    Anonymous
    Participant

    I think the answers to those 3 q’s are: yes, no and possibly – the last one being dependant on when the reform was carried out!

  • #66556
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Ambre

    The values you have are probably the value of the house when it was last sold. What happens is when you go to a Notary the Plus Valia of the property is paid for by the vendor. This is a tax based on the difference between the cadastral value when the property was purchased and when sold. It is calculated by the cadastral office but also includes such things as the total Sq M, the length of time between the two valuations, and the difference between the two values.

    It may be in this case that it was a long time ago when the property last changed hands (five or more years) in which case this sounds perfectly normal. The fact it has been reformed and the owner hasn’t declared it to the authorities is nothing unusual. They may have even gone through the legal channels of Licence de Obras, etc if it was major reforms then it would be difficult not to. However they may have finished recently and decided to sell the property.

    Generally when a vendor has made modifications without telling the authorities they go through the process when they sell it. It can be done at the same time and normally involves a cost to the vendor so they wait until they have sold it before doing so. In this area (Oliva – north Costa Blanca/Costa Azahar) they merely issue a fine to the vendor which is equivalent to the probable licence cost (3% of the cost of minor reforms or 10% of the cost of major reforms)

    So in answer to your questions

    Does it mean the property should be revalued prior to it being sold ? otherwise “we” would be responsible for the previous years taxes

    The property is revalued when YOU declare the value at the Notary. This will be the value the cadastral use as their basis for calculating IBI from that point on. So in essence you will be ok – you just need to make sure that the plus Valia for the property is definitely paid for by the vendor as in this case it is likely to be a lot of money.

    Would a vendor want to do this ? and would they get into trouble for not advising the authority of the reform, especially if it was done a few years ago ?

    The vendor would normally only want to do it when they sell the house as it involves a cost to do so. With regards to taxes, providing you declare the correct amount and get the amplification done prior to signing at the notary – you should not be liable for back taxes. In all probability the authorities would fine the owner for not declaring obra nueva, and for the back taxes relating to the f=difference in IBI over the years from when it was finished – but who is to say when it was finished? The chances are the vendor will get a fine equal to the amount hte town hall would have received in licence fees plus the back taxes from when it was determined the project was finished.

    Note if you have ever seen villas or houses unpainted on the outside – now you know the reason why – because the house is not technically finished so they leave it until they sell, paint the house then declare completion on the day of the Notary.

    Hope this helps

    Vince

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