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Values have risen in Torremolinos.
Property value review reduces taxes in Ronda and puts them up in Torremolinos

Property value review reduces taxes in Ronda and puts them up in Torremolinos

The 'cadastral' values, used to calculate IBI rates and other taxes, have gone down in five municipalities and increased in another six

FRANCISCO JIMÉNEZ

Friday, 31 January 2020, 10:37

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The arrival of the new year brings good news for owners of property (residential, commercial premises or land) in Ronda, Colmenar, Manilva, Serrato and Montecorto but not so good for those in Torremolinos, Cártama, Alcaucín, Algarrobo, Benahavís and Fuente de Piedra. In the first group, the administrative property values known as cadastral values, have been reduced by about three per cent, but in the others they have increased by between three and five per cent.

The most recent changes in the tax base are the result of corrective coefficients approved at the last Cabinet meeting in 2019. A total of 1,092 towns in Spain (11 in the province of Malaga) had applied for their values to be adjusted to become more in line with market prices.

There can be a major difference, depending on whether the cadastral value was set when property prices were high or after the bubble burst and prices plummeted.

Variations

The modification does not affect the rate the councils use for IBI or plusvalía, but does affect the deemed value of the property and the taxes are applied to that.

According to Spanish law, councils are obliged to update their cadastral values every ten years, although in fact this is rarely applied even though the Ministry of Finance has the power to act on its own or force councils that are participating in financial aid programmes to do so.

Councils are also able to request a review before the ten years are up as long as they fulfil three criteria: at least five years must have passed since the previous valuation came into force (in this case, before 2015); that there are substantial differences between market prices and the values used as a basis for taxes and all types of property in the municipality are affected equally; and the application is made before 31 May in the year before the review is carried out.

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