The cadastral value of a property is the administrative valuation assigned by the Land RegistryThe Catastro is a public registry that records all real estate properties in Spain (homes, commercial premises, plots, etc.). It contains detailed information about each property, including the cadast... More (CatastroThe Catastro is a public registry that records all real estate properties in Spain (homes, commercial premises, plots, etc.). It contains detailed information about each property, including the cadast... More) to every property in Spain. It is often lower than the market value, as it is primarily used to calculate taxes and does not reflect the sale price.
It is based on general factors such as location, size, age, and quality, but does not take into account renovations, finishes, or special features that are considered in official valuations and market prices.
Its main use is to calculate local property tax (IBIThe IBI (Impuesto sobre Bienes Inmuebles) is a council tax used to fund public services provided by the local authorities, such as the maintenance and cleaning of urban areas, local police and emergen... More), the municipal capital gainsCapital gains (plusvalía patrimonial) refer to the actual profit made when selling a property, calculated by subtracting the original purchase price (plus associated costs) from the sale price. For ex... More tax (plusvalía municipalThe municipal capital gains tax, officially known as the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU), is a tax levied by the local council when an urban propert... More), and inheritance and gift taxes.
