The past 1 January 2022 The section of the Law came into force 11/2021 of the 9 July, of measures aimed at preventing tax fraud, that modifies the tax base in the tax on property transfers and documented legal acts (SNAP) and inheritance and gift tax (ISD).
This new regulation, that affects both purchase and sale operations as well as inter vivos donations and succession or inheritance processes., does not affect However, those taxes that have the cadastral value as reference, like him THE PLACE o to municipal capital gains.
What does this modification entail??
With this regulation, The reference value of the cadastre becomes the tax base of the Tax on Property Transfers and Documented Legal Acts (SNAP) as well as the Inheritance and Donation Tax (ISD). Regarding this value, it may not exceed the market value.
The General Directorate of the Cadastre is in charge of determining objectively and with the limit of the market value, based on Cadastre data, the reference value, and this is obtained from the analysis of the prices communicated by the notaries in the real estate sales carried out, individual valuations are carried out according to the characteristics of each property.
In this sense, This reference value only affects those who acquire a property from the 1 January 2022, and at the same time have to pay taxes, good for ITPAJD, good for the ISD.
This rule also applies to the Wealth Tax for those properties whose acquisition, onerous or lucrative, the tax base has been the reference value of the cadastre; that is to say, It can only affect the Wealth Tax in relation to properties acquired from the 1 January 2022, in no case to the previously existing assets.
Another thing to highlight, unlike what was happening previously, is that in the event that the taxpayer does not agree with this new reference value, must prove it, that is to say, the burden of proof falls on this, who must demonstrate if there is a discrepancy between the Cadastre reference value and the market value. Until now, the Administration was obliged to prove that the value for which the taxpayer had paid taxes was not the real value of the property..
If you are thinking about making a purchase, sale or donation, among other procedures, It is important to take these developments into account to avoid making an error when settling the corresponding taxes.. From Vázquez & Manchón we advise and accompany you from the beginning of the transaction, ensuring correct completion and presentation of these.
