{"id":3777,"date":"2021-12-03T10:49:49","date_gmt":"2021-12-03T10:49:49","guid":{"rendered":"http:\/\/www.gmtaxconsultancy.com\/?p=3777"},"modified":"2021-12-03T10:49:49","modified_gmt":"2021-12-03T10:49:49","slug":"reference-valuation-real-estate-isd-ip-itpajd","status":"publish","type":"post","link":"https:\/\/gmtaxconsultancy.com\/en\/news\/reference-valuation-real-estate-isd-ip-itpajd\/","title":{"rendered":"Reference Valuation of Real Estate for Purposes of the ISD, the IP and the ITPAJD"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Act 11\/2021, of July 9, on measures against tax fraud, has also modified the regulations of the Inheritance and Gift Tax (ISD), the Wealth Tax (IP) and the Tax on Property Transfer Tax and Stamp Duty (ITPAJD) concerning the valuation of assets, substituting the concept of &#8220;real value&#8221; for that of &#8220;value&#8221; or &#8220;market value&#8221;. This has implications for the taxation of real estate in different taxes.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">\u00cdndice contenidos<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/gmtaxconsultancy.com\/en\/news\/reference-valuation-real-estate-isd-ip-itpajd\/#Inheritance_and_Gift_Tax_ISD\" >Inheritance and Gift Tax (ISD)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/gmtaxconsultancy.com\/en\/news\/reference-valuation-real-estate-isd-ip-itpajd\/#Wealth_Tax_IP\" >Wealth Tax (IP)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/gmtaxconsultancy.com\/en\/news\/reference-valuation-real-estate-isd-ip-itpajd\/#Tax_on_Property_Transfer_Tax_and_Stamp_Duty_ITPAJD\" >Tax on Property Transfer Tax and Stamp Duty\u00a0 (ITPAJD)<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Inheritance_and_Gift_Tax_ISD\"><\/span><strong>Inheritance and Gift Tax (ISD)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">With the new regulations, in the case of real estate, it will be understood that the &#8220;market value&#8221; is the &#8220;reference value&#8221; provided for in the regulations governing the <\/span><i><span style=\"font-weight: 400;\">Catastro<\/span><\/i><span style=\"font-weight: 400;\">. However, if the declared value is higher than the market value, that former will be taken as the tax base.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Wealth_Tax_IP\"><\/span><strong>Wealth Tax (IP)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The valuation of real estate in this tax must be made for the highest value of the following:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">a) Cadastral value.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">b) Value <\/span><b>determined<\/b><span style=\"font-weight: 400;\"> or verified by the Administration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">c) Price or acquisition value.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The wording of article 10 of the IP Law is very similar to the previous one, although it adds the concept of &#8220;determined value&#8221; that previously did not appear. The \u201cdetermined value\u201d is understood to be the new \u201creference value\u201d of the <\/span><i><span style=\"font-weight: 400;\">Catrastro<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the IP, it must be specified that this modification will only have effects for acquisitions made as of 01-01-2022, therefore, for the pre-existing wealth on that date, the previous rule will continue to apply, without taking into account the \u201creference value\u201d of the <\/span><i><span style=\"font-weight: 400;\">Catrastro<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tax_on_Property_Transfer_Tax_and_Stamp_Duty_ITPAJD\"><\/span><strong>Tax on Property Transfer Tax and Stamp Duty\u00a0 (ITPAJD)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In the same way as in the ISD, from now on the valuation of real estate must be done at \u201cmarket value\u201d, which will be the \u201creference value\u201d of the <\/span><i><span style=\"font-weight: 400;\">Catrastro<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is established that the General Directorate of the <\/span><i><span style=\"font-weight: 400;\">Catastro<\/span><\/i><span style=\"font-weight: 400;\"> will enact each year, based on the prices of all the real estate purchases made in the area, an annual report of the real estate market with the new reference values. To prevent the \u201creference value\u201d of real estate from exceeding the market value, a reduction factor of 0.9 has been approved by ministerial order.<\/span><\/p>\n<p><b>It is considered that the new regulations might lead to a higher valuation of real estate<\/b><span style=\"font-weight: 400;\"> for the ISD, the IP and the ITPAJD, <\/span><b>therefore carrying out an operation before the end of the year could imply some tax savings for the taxpayer.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The new individualized reference values \u200b\u200bwill be available at the Electronic Office of the <\/span><i><span style=\"font-weight: 400;\">Catastro<\/span><\/i><span style=\"font-weight: 400;\"> as of January 1, 2022.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In case of being dissatisfied with the new valuation of the property, the taxpayer may appeal it by requesting the rectification of his self-assessment where this reference value appears, or by appealing the liquidation that is practised by the Administration.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>If you have any questions regarding this topic, please contact our <a href=\"https:\/\/gmtaxconsultancy.com\/en\/tax-advice-barcelona\/\">tax advisors in Barcelona<\/a> by email or phone.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Act 11\/2021, of July 9, on measures against tax fraud, has also modified the regulations of the Inheritance and Gift Tax (ISD), the Wealth Tax (IP) and the Tax on Property Transfer Tax and Stamp Duty (ITPAJD) concerning the valuation of assets, substituting the concept of &#8220;real value&#8221; for that of &#8220;value&#8221; or &#8220;market [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[127],"tags":[],"class_list":["post-3777","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/3777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/comments?post=3777"}],"version-history":[{"count":0,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/3777\/revisions"}],"wp:attachment":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/media?parent=3777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/categories?post=3777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/tags?post=3777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}