Cadastral Reference Value: What It Is and How to Calculate It in 2026

We know that the real estate market plays a fundamental role in today’s economy, which is why the proper valuation of properties becomes essential for sellers, buyers, investors, and government entities. The cadastral reference value is one of the most relevant tools in this area. This value, which has gained particular importance in recent years, influences real estate transactions and also has a significant impact on urban planning and taxation. Let’s review the key points on this topic to better understand it in depth. 

What is the cadastral reference value?

In Spain, the cadastral reference value is the minimum amount that must be paid when inheriting or acquiring real estate. However, it does not always coincide with the taxable base, since if the declared value is higher, taxes must be paid on that higher amount. This administrative value was implemented in January 2022 and is determined annually by the Directorate General of the Cadastre, based on the property’s cadastral information and, primarily, on property transfer prices reported by notaries and other public officials. It serves as a reference for calculating Inheritance and Gift Tax (ISD) and is also fundamental for calculating Property Transfer Tax (ITP) and Stamp Duty (AJD).

It is important to note that under no circumstances may it exceed the market value. To ensure this, a reduction factor is applied in its determination. This value is publicly available on the Cadastre’s Electronic Office, but only the cadastral holder has access to the certificate explaining how the reference value was calculated.

Although the traditional cadastral value takes into account various factors such as location, surface area, use, and property characteristics, the cadastral reference value focuses more on the current market context.

What is it for?

The cadastral reference value serves multiple functions:

Tax determination

This value is used to calculate the taxes associated with the transfer of real estate, such as the Property Transfer Tax (ITP) and the Wealth Tax.

Cadastral valuations

It provides information for calculating the traditional cadastral value.

Legal certainty

It provides an initial reference for the parties involved in a purchase transaction, facilitating informed decision-making.

Tax oversight

It helps the Tax Agency detect potential fraud or discrepancies in the valuations declared by taxpayers.

Market transparency

By guiding the purchase price of a property (reference value), transparency in the real estate sector is promoted.

How can I find out the cadastral reference value?

To find out the cadastral reference value of a property, interested parties have several options:

• Online inquiry: through the Tax Agency or Cadastre website, where searches can be conducted by cadastral reference number, address, or registration details. A national ID (DNI), digital certificate, or secure access code is required. The cadastral holder may also review the elements used to determine the assigned value.
• By phone: by calling the Cadastre hotline at +34 91 387 45 50 or +34 902 37 36 35. A national ID (DNI) is required to obtain information about the cadastral reference value.

• In person: by visiting the Cadastre offices in person, with a prior appointment scheduled through the phone numbers mentioned above. A national ID (DNI) is required to complete the process.

Who sets the reference value?

The cadastral reference value is determined by the General Directorate of Cadastre, an entity under the Ministry of Finance in Spain. This calculation is carried out by taking into account a series of factors, including the analysis of property sale transaction data in the area, as well as the specific characteristics of each property.

How is it calculated?

The reference value of properties is determined each year through the application of average value modules. To calculate the cadastral reference value, a methodology is used that involves a thorough analysis of various parameters:

• Market data: information from recent property transactions in the area is compiled to establish an average. This includes all real estate transactions executed before a notary or registered in the Property Registry.
• Property characteristics: taking into account factors such as location, surface area, age, and condition of the property, among others.
• Adjustment coefficients: coefficients are applied to adjust the value according to the inflationary environment and specific characteristics.

This process may vary depending on local regulations and the type of property, which adds flexibility but also complexity to the valuation. Understanding how this value affects property taxesis essential.

What is the usual reference value?

The cadastral reference value can vary significantly depending on the property’s characteristics and location. For example, in metropolitan areas such as Madrid or Barcelona, this value may be much higher than in rural areas. There is no fixed percentage, but in general terms, it is estimated that the reference value ranges between 50% and 70% of the market value, indicating that it is a parameter that seeks to provide a balanced and fair valuation.

Difference between cadastral value and market value

Although these two concepts may seem similar, there are key differences between the cadastral value and the market value:

• Cadastral value: This is an administrative value determined by the Real Estate Cadastre that takes into account factors such as location, surface area, and the condition of the property. However, it does not necessarily reflect market supply and demand dynamics. It is generally used to calculate certain taxes, fees, and capital gains.
• Market value: This is the price paid in the real estate market based on supply and demand. In other words, it is the price a buyer would be willing to pay for a property at a specific time and under specific market conditions. This value may be influenced by current real estate market trends, the country’s economic situation, and other external factors.

For those seeking to maximize their investment or minimize their taxes, understanding this difference is essential.

Example of cadastral value

Let’s imagine a single-family home located in an urban area of Madrid with the following characteristics:

• Surface area: 150 m².
• Location: Established neighborhood.
• Age: 10 years.
• Condition: Well maintained.

Let’s assume that, after reviewing various comparable sale transactions in the area, the cadastral reference value of this property is set at €300,000. This means that if the property is sold within that range, both the buyer and the seller must take this value into account when calculating the taxes associated with the transaction.

What happens if there is no cadastral reference value?

In cases where the property does not have a reference value, the law establishes that the tax base will be the higher of the following options:

Value declared by the interested parties

It is the value assigned by the parties when there is no financial consideration, such as in a barter transaction.

Agreed price

This is the amount agreed upon between the buyer and seller in a sale transaction.

Market value

This refers to the probable sale price under normal market conditions.

If the taxpayer declares a value lower than the market value, the tax authorities may initiate a value verification procedure to prevent fraud, especially if irregularities are detected. The valuation criteria are based on the cadastral value and coefficients updated annually.

What happens if I buy below the cadastral reference value?

If a property is purchased for less than its cadastral reference value, there is a risk that the authorities may review the transaction and consider that there has been an attempt to avoid taxes. In such cases, justification for the price paid may be required, and the buyer may be required to pay the difference corresponding to the Property Transfer Tax.

What should I do if I disagree with the reference value?

If a buyer or owner disagrees with the cadastral reference value established for their property, they have the right to file a claim. The reference value can only be challenged when it has tax implications and is used as the basis for calculating Property Transfer Tax (ITP), Stamp Duty (AJD), or Inheritance and Gift Tax.

It is essential to gather all the necessary documentation to support your claim, such as independent appraisal reports and market comparisons that demonstrate a lower market value than the reference value. The documentation can be submitted to the relevant authority for review, and an appeal for reconsideration may be filed with the tax authorities.

When can the reference value be challenged?

Although the regulation has not established a specific procedure to directly challenge the reference value, it is possible to contest it indirectly when it harms the taxpayer’s legitimate interests. This occurs when the reference value is higher than the market value.

In this case, the taxpayer must prove that the property’s market value is lower than the cadastral reference value; in other words, that the reference value is incorrect. It should be noted that, in many cases, the costs incurred by the taxpayer may exceed the amount to be reclaimed, so it may not always be worthwhile to file a claim.

In any case, it is advisable to seek guidance from a specialized lawyer or real estate agent who can assist you throughout the process and provide the best advice.

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Conclusion 

The cadastral reference value is an important tool in the Spanish real estate sector, as its function is not limited to tax matters. It also serves as a control mechanism and promotes transparency in the real estate market. Understanding what it is, how it differs from market value, and how it applies to transactions helps interested parties make more informed and secure decisions.