The 2022 General State Budget project contemplates the highest social spending in history, but at the same time provides for other measures that will directly affect the pockets of citizens, such as updating the cadastral values of up to 825,000 properties. It is a regular but not trivial review, since it generally rises and affects tax figures as relevant as the Real Estate Tax (IBI) and the so-called patrimonial taxes (Successions and Donations, Patrimonial Transmissions and Documented Legal Acts).
This is stated in the documentation of the Real Estate Cadastre Management Program, which also contains the preparation of the announced register with the reference values of up to 78.5 million properties, a measure that will allow tax administrations to automatically calculate the tax performance of real estate transactions or property transfer operations, reduce fraud in property taxes and reduce litigation generated by the diversity of valuation mechanisms used by communities autonomous to assess the tax invoice derived from real estate operations.
Treasury once again increases considerably the collective valuation procedures (PVC) after two years in which the General Directorate of the Land Registry could not carry out all the planned reviews. In 2020, 500,000 properties were budgeted and the value of 70,994 could hardly be updated in a year marked by the confinement and the stoppage of the activity. “Due to the state of alarm, the total PVCs were postponed and only partial and simplified procedures were carried out,” they explain from the Treasury.
Thus, in 2021, of the 500,000 planned collective valuation procedures, it is estimated that 322,509 will be carried out by the end of the year, practically five times more than in 2020, according to the budget project that has just reached Congress. of the Deputies for its parliamentary procedure. By 2022, the Treasury estimates that the cadastral values of 825,000 properties will be reviewed, a amount 65% higher than budgeted in both 2021 and 2020, so that the department that directs Maria Jesus Montero hits an important acceleration after the stoppage caused by the Covid crisis, when the economic repercussions on citizens and companies are still considerable.
The truth is The Treasury maintains a long crusade to adapt cadastral values to the reality of the real estate marketor already from the time of Cristóbal Montoro. “To keep the cadastral values of the properties duly updated, it is necessary to carry out massive valuations in the municipalities where they are not in accordance with the reality of the market, either because they have been out of date with respect to reality, either due to changes or modifications of planning urban planning “, explains the Ministry of Montero in the section of Management of the Cadastre of the General State Budgets of 2022.
“Cadastral reviews have been very recurrent in recent years”, recalled in these pages the economist Javier Santacruz. The problem, he explained, is that cadastral value reviews tend to be upward, in line with the inertia of the real estate market. A trend that also comes face to face with the reality of the Spanish real estate market, where prices are more stressed, especially in the large provincial capitals and their surroundings. “Applying the review to the entire territory implies raising the tax burden through the back door,” in the eyes of Santacruz.
In this way, there is the risk that cadastral values are perpetuated in the IBI and taxpayers will have to pay unrealistic prices for real estate forever. The reasonable thing, for Santacruz, would be to calculate a stable value over time, independent of economic cycles. It is also the case that the historical war between the Treasury and the taxpayers when it comes to assessing the properties that are bought, inherited or on which a large part of the main taxes weigh, from the Cadastre, already motivates half of the resources of the regional economic administrative courts (TEAR) and the Government is focused on this fraud.
In fact, the Cadastre will make available to the Treasury next year the estimate of the market value of 78.5 million properties to comply with the Government’s plan to implement a single reference so that the tax administrations of the entire country can automatically calculate the fiscal performance of real estate transactions or property transfer operations in the so-called patrimonial taxes. The initiative, in which the General Directorate of Cadastre has been working since 2017, is one of the star measures of the new Law on Prevention and Fight Against Fraud Measures and will begin to be applied as of January 1, 2022.