The importance of the “Valor Catastral”
If you are about to buy a property in Ibiza, you should consider checking first the “valor catastral” of the property. This is an important estimate of its capital value and it’s used to calculate the volume and amount of property taxes due on each property. To find out the catastral value of the Ibiza home that you would like to buy, you can simply check the amount listed on the IBI invoice or visit the catastral office located in the town hall.
How is calculated?
The catastral value of a property is decided by independent government employees based on a strict and complex set of valuation guidelines, some factors that can influence the value are: the location, the age of the property and build quality, its potential performance as an asset, any renovations undertaken and the associated costs of the works.
Why is it important to know the catastral value of the property?
In case you are planning to invest in the Ibiza property market or buying your forever home, knowing the catastral value is crucial as it will help you know how much you will end up paying. Keep in mind that buyers can never sell below the catastral value and that is because they may be having trouble with the Spanish Tax Agency. This will help you know which is the minimum price the seller is willing to sell the property for (its catastral value). Also, it’s the catastral value that you take into consideration when paying taxes to both the Spanish Government and your town hall. Therefore knowing the value will help you know how much tax you will pay when buying the property and when owning it.
Would you like to learn more about buying a property in Ibiza? Check our previous blog: The process of buying a property in Ibiza.