The cadastral value is associated with the purchase and sale of farms and other real estate, even the amount of various taxes depends on this value. That is why it is important to know this valuation in order to have a real estimate of the price of a property.
Below we will see what this value is, how it is calculated and its importance when doing business with a farm.
Cadastral value: What is it?
To understand the cadastral value, we must first be clear that the Cadastre refers to a general registry, administered by the state, specifically by the Ministry of Finance.
This public entity is in charge of registering all real estate within the national territory. And each of these assets is assigned a code and a valuation, which is known as the cadastral value.
Each municipality, in agreement with the Ministry of Finance, is responsible for adjusting the valuation based on certain factors. These include the development of the area and housing prices. So this value may vary from one year to another and depending on the municipality.
Specifically, and at the beginning of each year, the aforementioned adjustment is made. To know the last update of the Cadastre of each municipality in Alicante in the year 2023 you only need to click here.
The value of a property according to the Cadastre
The cadastral value is only determined by the specialized personnel for such task; taking as a basis the Value Proposal prepared by the General Directorate of Cadastre.
These are the basic criteria used by the public administration to determine the valuation of a property:
- Location of the farm
- Conservation conditions
- Extent of ownership
- Urban level of the area
- Construction materials
- Land and market value
- History of the farm
As a general rule, these are the parameters taken into account by the Cadastre to determine the value of a real estate property, whether urban, rustic or with special characteristics.
Ways to calculate the cadastral value of a house in Alicante
As it is a legal data of very daily use, there are several means available to know the cadastral valuation of a property. The calculation is made by the administrative body in charge, based on the criteria mentioned above. The Cadastre office of each municipality has several channels of contact:
- In person
- Through telephone contact (902 373 635)
- Through the online service(electronic office)
- In any of the modalities it is necessary to present the personal data and the cadastral reference number of the property. This is a code composed of 20 digits between numbers and letters that represents the digital fingerprint of each property, since it is a unique code.
Another alternative to know the cadastral value is based on the IBI. In this case we need to divide the annual quota of this tax by the levy applied to the real estate in each municipality. For Alicante the percentage is 0.59% for urban and 0.30 for rustic properties.
For example, for a house that pays 140 euros per year in IBI, which corresponds to a 0.59% tax rate, its cadastral value would be 140/0.59%= 23,729 euros.
The broad usefulness of the cadastral value
- The registration of real estate in the Cadastre is compulsory and free of charge. This governmental provision has a common benefit for both the state and property owners.
- Since this valuation serves as a reference at the time of selling a property. Based on the calculation of the cadastral value, the commercial value is assigned to the property.
- It must always be taken into account that the cadastral valuation must be lower than the commercial valuation. Otherwise, and with a high percentage of difference, it is necessary to make a claim before the Cadastre and it is advisable to seek the advice of a professional in real estate law.