The reference value has become one of the most important concepts for those who wish to purchase a home. Since its implementation, this indicator marks the minimum base on which many taxes are calculated, making it a key element in any real estate transaction.
This value is set by the General Directorate of Cadastre based on the real prices of sales made before a notary. Its objective is to reflect the market value of properties in each area, subsequently applying correction factors to adjust it to reality and prevent it from exceeding the average price.
For buyers, this has a direct implication: even if they manage to acquire a property at a lower price, the tax authorities can demand payment of taxes based on the reference value if it is higher. This is especially true for the Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales), where the greater value between the purchase price and the tax value is always used as the basis.
Therefore, before closing a deal, it is essential to check the property's reference value. This information can be easily obtained through the Electronic Cadastre Headquarters using the cadastral reference. With this information, buyers can more accurately calculate the costs associated with the purchase.
Another important aspect is that the reference value does not always coincide with the cadastral value. While the latter is mainly used to calculate taxes such as IBI (property tax), the reference value is specifically designed to approximate market value and serve as a basis for transfer operations.
Additionally, it is advisable to analyze whether the assigned value truly reflects the property's characteristics. In some cases, there may be discrepancies, and it is possible to appeal if you believe the value does not reflect reality.
At Blooming Homes, we help buyers understand every aspect of the process, including the impact of the reference value. Our goal is for every client to make decisions with complete clarity, avoiding unexpected costs and ensuring a solid and well-planned investment.
