Separate reference value, cadastral value and market evidence
The cadastral value used for local property-tax purposes is not the same as the Catastro reference value used under the inheritance-tax valuation rules. An online property advertisement is a different kind of evidence again: it is an asking price, not necessarily the price achieved for a comparable completed sale.
For inheritance tax, property with an available reference value is generally valued using that figure at the tax accrual date, unless the declared value is higher. If no reference value exists or it cannot be certified, the statutory rule uses the higher of the declared value and market value, subject to administrative verification.
Use the right date and the correct property interest
In an ordinary inheritance, the relevant tax date is generally the date of death, not the day the heirs eventually sign at the notary. A certificate obtained for today's date may therefore answer the wrong question. There are special situations in which accrual requires separate analysis.
Also check what actually belonged to the deceased. If they held only a share, the estate does not automatically contain the entire property. Separate the value of the whole asset from the taxable acquisition of each heir. A usufruct and bare ownership need their own valuation treatment; they should not each be recorded as full ownership of the same home.
Build a valuation file, not just a number
- Land Registry details and cadastral reference for the apartment, garage and storage room.
- Ownership percentages and the date relevant to the inheritance.
- Reference-value certificate for that date, or evidence that none is available.
- Photos, technical reports and other evidence of defects or unusual property conditions.
- A professional valuation where there is a material discrepancy or dispute.
A neglected apartment in Marbella and a renovated unit advertised in the same development may not be directly comparable. Record differences in condition, area, rights and occupancy. Keep dated evidence before refurbishment changes the property's appearance.
Disputing a value and planning a later sale
A belief that the reference value is too high does not make it safe simply to substitute a lower figure. The legislation provides routes to challenge it in connection with a tax assessment or a request to rectify a self-assessment. The procedure, evidence and time limits need to be considered together.
Keep inheritance tax separate from municipal taxes and the tax consequences of a later sale. Do not inflate or reduce the inheritance value merely to target a desired future tax result. If the family plans to sell soon, review the evidence and both stages before signing the inheritance documents.
Frequently asked questions
Can I use the amount shown on the IBI bill?
Not without checking what that amount represents. The cadastral value on an IBI bill is not interchangeable with the reference value applicable to inheritance tax.
Does an estate agent's valuation override the reference value?
No. Market evidence may be relevant to a properly supported challenge, but it does not automatically displace the statutory tax-valuation rule.