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AMIGOPROP Inmobiliaria Real Estate
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Estepona, Mijas, Vélez and Benalmádena have called for the catastral values to be adjusted to the current market situation
Fecha: 17-11-2011 - 11h48   Modif.: 17-11-2011 - 11h48




During the construction boom, propertyprices soared and catastral registers were updated to reflect this increase invalue. This meant that home owners saw their IBI (property tax) bills go up andthe local councils, especially those in tourist areas with large numbers ofsecond homes, watched their coffers swell.Now the market prices on which the newvalues were based are no longer rising and it is more and more common forproperties to be sold for less than the amount on the catastral register.

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Publicado por: AMIGOPROP Inmobiliaria Real Estate

 Estepona, Mijas, Vélez and Benalmádena have called for the catastral values to be adjusted to the current market situation

The Catastral Valuation Document is a formal certificate that contains the land and construction values, the assessment criteria and the applicable correction to be applied to the relevant plot. It also sets the limits of what is considered to be urban land. The Catastral Valuation Document is an official document that is available for public inspection. It can also be consulted in the event of a revision of Catastral values.

 

A revaluation on the Catastral register will reduce IBI.

During the construction boom, property prices soared and catastral registers were updated to reflect this increase in value. This meant that home owners saw their IBI (property tax) bills go up and the local councils, especially those in tourist areas with large numbers of second homes, watched their coffers swell.

Now the market prices on which the new values were based are no longer rising and it is more and more common for properties to be sold for less than the amount on the catastral register.

In an attempt take some tax pressure off the local people many councils have opted to reduce the rate used to calculate the IBI, offer tax breaks to registered residents or allow payment in several installments. However this in many cases is not enough and several local authorities have urged the Ministry of Economy and Tax to reduce the catastral values to adjust them to the reality of today’s property market. Benalmádena, Vélez and Mijas have already formally submitted their request to the Government and Malaga is considering doing the same. The process is more advanced in Estepona where the former council had to rectify (it even went as far as to appeal against a process that it itself had authorised) when inundated with protests after the catastral values had been increased by an average of 300 per cent in 2008.

Nevertheless this revision will not be applied until 2014 as legislation states that the new values cannot be applied for a period of five years.

The same thing happened in Vélez where the local authority decided to take advantage of the property boom and carry out a catastral revision before it was due, even paying for the survey itself (around a million euros). This was in 2006 and the new values were valid for tax purposes from 2008 when the construction crisis was already apparent.

Last week Mijas Town Hall voted to subsidise ten per cent of the IBI rates for home owners registered on the population census (padrón). Meanwhile it waits for the central Government to respond to its request to reduce the values.

Benalmádena has reduced the rate used to calculate the IBI to 0.65% and has introduced a 55 per cent (five per cent more if the bills are paid by direct debit) reduction for registered residents. The council has called for a general review of catastral values in the municipality, while some property owners have applied individually and their requests are being granted.

Drastic measures

Meanwhile MijasTown Hall has initiated procedures to freeze the accounts of a total of 16,217 residents who between them owe some 26.1 million euros in local taxes. “We all have the obligation to contribute to the maintenance of the services provided by the Town Hall”, said councillor Mario Bravo. He added that banks would be receiving official notifications from the local authority so that the corresponding amounts can be retained from the taxpayers’ accounts.




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Estepona, Mijas, Vélez and Benalmádena have called for the catastral values to be adjusted to the current market situation
Publicador por: AMIGOPROP Inmobiliaria Real Estate
Ref. : During the construction boom, propertyprices soared and catastral registers were updated to reflect this increase invalue. This meant that home owners saw their IBI (property tax) bills go up andthe local councils, especially those in tourist areas with large numbers ofsecond homes, watched their coffers swell.Now the market prices on which the newvalues were based are no longer rising and it is more and more common forproperties to be sold for less than the amount on the catastral register.    -     Fecha: 17-11-2011
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