How it is worked out

The Cadastre starts from the prices of sales completed before a notary or recorded in the Land Registry. With them it draws up an annual property market report and sets average value modules, to which it applies objective coefficients and calculation rules based on each property's features.

So that the result does not exceed market value, reduction factors set by ministerial order are applied. It is therefore a tax value, not a valuation of your particular home.

Why it matters when buying

Article 10 of the Spanish property transfer tax act says the tax base for a property is its reference value. But if the agreed price or the declared value is higher, you pay on the higher figure. In practice, the reference value is the minimum on which you pay the tax on a resale purchase; the rate is set by each region.

It is also the base for inheritance and gift tax. If you disagree with it, it can be challenged when it has a tax effect, through the ordinary administrative appeals or before the economic-administrative tribunals.

What the HOUSINGFAX report tells you

The reference value is tax data for each property and is looked up on the Cadastre's online office by identifying yourself with an electronic ID, a digital certificate or Cl@ve, so the report does not show it: ask the seller for it, or look it up yourself if you are the owner.

What check 07, «Price and market», does is bring together the Ministry of Housing's appraised value and the reference rent for the area and work out minimum orientative buying costs (tax, notary and land registry). Look through the sample report and check your home for free.

What the reference value does not tell you

It is not what your flat is worth or what the bank will lend you: it ignores the renovation, the floor and the views. It says nothing about the state of the building either. The report is not a valuation and does not replace an on-site technical inspection of the building. It is not tax advice.

Short answers

Who sets the reference value?

The Spanish Directorate General for the Cadastre, every year, from the prices of sales completed before a notary or recorded in the Land Registry.

Where do I look up a flat's reference value?

On the Cadastre's online office, identifying yourself with an electronic ID, a digital certificate or Cl@ve. If you are not the owner, ask the seller for it before you sign.

Do I pay the tax on the price or on the reference value?

On the higher of the two. If the price in the deed is above the reference value, you pay on the price; if it is below, on the reference value.

Can the reference value be challenged?

Yes, when it has a tax effect: when the purchase tax or inheritance and gift tax is assessed, through the ordinary administrative appeals or before the economic-administrative tribunals.

Official sources you can consult

The links let you review the primary source. Their inclusion does not widen their purpose or turn a piece of context into a diagnosis.