Changing Your Property’s Cadastral Surface Area in Spain
February 1, 2024
As property owners in Spain, ensuring the accuracy of our property's cadastral data may not always be at the forefront of your mind. However, overlooking discrepancies in the cadastral surface area can have significant financial implications, impacting taxes such as Real Estate Tax (IBI) and non-resident property taxes. At IberianTax, we understand the importance of addressing these discrepancies and unlocking potential tax savings for our clients. In this blog post, we delve into the intricacies of changing cadastral surface area and how it can impact your tax obligations in Spain.
What is a Cadastre?
The Cadastral Register is an administrative register of all properties in Spain. Details noted on the cadastre include physical, economic and legal features, including location, cadastral references, surface, use, cultivation, graphic representation, cadastral value and cadastral holder.
The purpose of the register is fiscal, collecting the descriptions of all properties in the country and their owners, as well as providing State, Autonomous and local administrations with the necessary information for the management, collection and control of various taxes.
The Cadastral Value (valor catastral in Spanish) is an administrative value that is assigned to all Spanish properties and is used to determine the amount of local tax rates that each owner must pay, as well as calculating the tax liability for non-residents when it comes to non-rented properties.
Cadastral Surface Area Errors
The cadastral surface area of a property is a crucial element that’s used to calculate a variety of taxes in Spain. However, many people are unaware that there can be errors in this data, which could potentially lead to overpayments or inaccuracies in tax assessments – costing you money. In some cases, it can even complicate a house sale. Common discrepancies may arise from inaccuracies in measurements, misinterpretation of legal rules, or outdated information. Regardless of the cause, rectifying these errors guarantees fair and accurate taxation on your Spanish property.
When it comes to addressing cadastral surface area errors, property owners have two primary procedures at their disposal:
Correcting discrepancies: addressing errors related to property-specific data or characteristics, such as surface area discrepancies resulting from misapplied legal rules.
Rectifying errors: correcting inaccuracies stemming from the improper application of urban planning information or measurement errors.
The Cadastre and the Treasury tend to prefer discrepancy correction over rectifying errors because resolving discrepancies takes effect from the resolution date, versus retroactively when it comes to the rectifying errors route. Correcting discrepancies may offer immediate relief but may not have retroactive effects, limiting the
ability to seek refunds for overpaid taxes in previous years. Conversely, rectifying errors may provide retroactive relief but often involves a more complex process.
Challenging the Supreme Court
For those who wish to seek refunds for overpaid taxes, this can be leveraged using legal precedents set by the Supreme Court. If you wish to choose this route, we highly recommend employing the help of an experienced lawyer/solicitor to assist you.
The court has indicated that refunds can be pursued for past years if errors in the cadastral surface area existed during those periods. Although a long process, by citing relevant rulings and legal interpretations, property owners can advocate for retroactive refunds and mitigate the financial impact of cadastral errors.
Non-Resident Property Taxes with IberianTax
Navigating cadastral surface area changes and correction procedures can be daunting, however, it’s an important task that could potentially save you money in the long run, especially when it comes to paying your non-resident property taxes in Spain.
If you’re looking for a way to reduce your non-resident property taxes even further, why not consider filing your Modelo 210 with IberianTax? With our online tax software, you can say goodbye to expensive accountancy fees and file your non-resident property taxes from just 34.95€!
With our easy-to-use software, you’ll be able to complete your Modelo 210 quickly and easily, even if you’ve never submitted a return before. Our team of tax experts will even double-check your return, before submitting it to the Spanish tax authorities on your behalf – it couldn’t be easier!
At IberianTax, we can handle a range of different non-resident property taxes in Spain, including Imputed Income, Rental Income and Capital Gains Tax, even for multiple property owners. Start your journey to stress- fee filing with IberianTax today!