MADRID – Next year’s General Government Budgets will also mention a cadastral assessment of 825,000 homes. The cadastral value determines the ultimate amount of the IBI, the real estate tax.
This revision of the cadastral value of these more than 800,000 homes means that it will increase as one of the most important sources of financing for municipalities. Cinco Días reports that the 932M Public Accounts Program collects, as usual, a forecast of cadastral revisions every year. However, the figure recorded rarely exceeded 500,000 homes.
In any case, this number of cadastral surveys will most likely not be met. That is, if the number of revisions of the cadastral value in previous years is taken into account. It is the rule rather than the exception that the objectives in this regard are not achieved. In this case, the tax authorities have launched a high volume. However, how much they will realise remains to be seen.
Moreover, argues Cinco Días, 2023 is an election year with municipal elections in May. This means that in the first half of 2023 many changes can take place within municipalities, which are ultimately the ones that have to carry out the assessments of the cadastral value.
In 2019, 500,000 revisions were included in the state budget, but 392,000 were ultimately implemented, four out of five. It was also the highest rate in five years, with compliance of just 14% in 2020 (the year of the pandemic) or 37% in 2021.
“It is carried out in a system of co-responsibility with the interested municipalities. Thus, their request, will and availability are decisive and justify the final results of the affected properties,” said Land Registry sources in an attempt to bridge the gap between the target and compliance explain.
Also read: Spain´s property market forecast 2022-23