The cadastral reference value in Spain

Since 2022, buying or inheriting a home in Spain comes with a new number that can cost you money: the valor de referencia del Catastro. It is the minimum tax base the tax authorities use to calculate transaction taxes, and if you do not know it before signing, you could face an expensive surprise.

We explain exactly what it is, how it differs from the valor catastral and market price, how it affects the tax you pay, and how to check it before making an offer.

What is the valor de referencia del Catastro?

The valor de referencia is a value that the Dirección General del Catastro assigns each year to every property based on notarised sale prices in the area. It was introduced by Ley 11/2021 de medidas de prevención del fraude fiscal and has been in force since 1 January 2022.

Its purpose is tax-related: it is the minimum taxable base for Impuesto de Transmisiones Patrimoniales (ITP) when you buy a resale home, and for Impuesto de Sucesiones y Donaciones (ISD) when you inherit or receive a property as a gift. In other words, even if you buy for less, the tax authorities charge you tax at least on the valor de referencia.

Valor de referencia, valor catastral and market value: they are not the same

• Valor catastral: the historic administrative value of the property, usually well below market value and used for IBI. It does not change with each sale in the area.
• Valor de referencia: the new annual tax value, calculated from actual sales in the area. Since 2022 it has been the minimum base for ITP and ISD.
• Market value: the real purchase and sale price, the figure you see in listings. It may be above or below the valor de referencia.

How does it affect taxes when buying or inheriting?

The impact is direct. When you buy a resale property, you pay ITP (a rate that varies by autonomous community, usually between 6% and 10%) on the higher of these two amounts: the deeded price or the valor de referencia. If you buy below the valor de referencia, you are still taxed on the valor de referencia.

A simple example: you buy a flat for €150,000 but its valor de referencia is €170,000. With ITP at 8%, you do not pay €12,000 in tax (based on the price), but €13,600 (based on the valor de referencia). That is €1,600 more than you expected. That is why it is worth knowing the figure before you negotiate and sign.

What if I disagree with the valor de referencia?

You can pay the tax based on the valor de referencia and then request a correction and refund from the tax administration, providing evidence that the true market value is lower (for example, a valuation report). You may also challenge it if the property has circumstances the mass valuation does not capture: poor condition, encumbrances, occupation or planning irregularities.

How to check a property's valor de referencia

It is free. The Sede Electrónica del Catastro has a dedicated valor de referencia section: enter the property's cadastral reference and you can obtain the current year's value. If you do not know the cadastral reference, you can locate it by address; we explain how in our guide on what the cadastral reference is.

The valor de referencia tells you what you will be taxed on; what it does not tell you is whether the asking price is fair in light of the property's real condition and risks. For that, it is worth comparing the price against local values and the risks affecting the specific property before making an offer.