We can find a huge amount of information on how we can correctly transfer a property.
But for us, reviewing the taxation linked to the transaction, before the transaction, is fundamental, because it can affect (and a lot) the final result.
Taxation in real estate transfers
We can distinguish two main categories, direct (Inheritance and Gift Tax, Personal Income Tax, Real Estate Tax and Tax on the increase in value of urban land) and indirect (Value Added Tax and Transfer Tax and Stamp Duty). What these two categories usually have in common is that the taxable base is based on the tax values of the General Directorate of Cadastre.
The cadastral value in the common territory is determined by the Treasury through the Cadastre, as an exclusive competence of the State. It forms the taxable base of the IBI and the IIVTNU, a percentage of its value is imputed directly to the IRPF in certain properties.
The reference value is understood as that objectively determined for each real estate property from the data in the Cadastre, which corresponds to the most probable price for which a property could be sold between independent and unencumbered parties.
It is important to know that any alteration of the characteristics of the real estate by the cadastral procedures (registration of an alteration, an extension, etc.) may lead to the assignment of a new reference value, and that a transaction for which we had planned to pay a certain amount of taxes related to the transfer, may affect its viability by changing the reference value.
All taxes that are directly or indirectly linked to these values will be.
Solution: Carry out a cadastral audit before the transfer.
Performing a cadastral audit on the property before the transfer, it is possible to optimize all the taxes related to the operation, and in some occasions, to obtain a refund of undue income of IBI and IIVTNU.
The average time that the Cadastre has to resolve the procedures is usually about six months approximately, changing according to the management. For this reason, we are in a good moment to analyze the properties, the modifications that affect the cadastral value (and the reference value) can be solved this year and begin to have cadastral effectiveness, according to each casuistry, within this exercise.
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