First step to establish the new reference index for housing that, as of January 1, will determine how much the buyer of a house must pay for the Property Transfer Tax, or what amounts must be paid for the Inheritance Tax to the inherit a property. The General Directorate of Cadastre has published the new value maps with the average prices of the transactions reported by notaries in the different areas in which each municipality has segmented and which, in this case, range from the 3,780 euros established for the area from the confluence of Playa de San Juan with Cabo de las Huertas -where the old Hotel Sidi was located and now the construction company TM builds a luxury urbanization- at just 200 euros from districts such as El Rodriguillo, in Pinoso, or the neighborhood of San Francisco de Asís in Villena.
Values to which the Cadastre will apply other variables, such as age or state of conservation, to determine what each property should be worth and calculate, accordingly, the taxes to be paid. In this way, replaces the ‘real value’ system in force up to now, where it was the buyer who declared an amount and the Administration who had to appeal if they did not agree with this assessment and demonstrate the reasons. A mechanism with which the Government intends to end the litigation caused by the previous system -that the autonomous communities, which are the ones that collect these taxes, have had to reform on several occasions due to different court rulings-, but that experts fear that it will end up causing an increase in the amounts to be paid.
To begin with, because the burden of proof is reversed, as explained by Luis Muñoz, from Sánchez Butrón Abogados. That is to say, that now “it will be the taxpayers who will have to claim if they consider that the value established by the Cadastre does not conform to reality,” says the lawyer. In this same line, Another of the great doubts is how much this new index will be able to fine-tune. “We all know that there may be a house in front of another and that one is falling and the other is perfectly renovated,” says Antonio Pérez, president of the Alicante College of Economists, who believes that the new system will end up assuming a rise in taxes affected by the change (the new index will not be applied to the IBI). A rise that they deny in the Ministry of Finance, from where they assure that they do not foresee an increase in income for this reason.
At the moment, to determine the initial value maps on which the value of each property will be calculated, what the Cadastre has done is to segment the populations into areas that it has considered homogeneous – that is, with the same construction characteristics, age, etc. .-, and determine the average prices based on the sales notified by the notaries.
In this way, for example, an average price of 3,070 euros per square meter has been established for the front line buildings of Playa de San Juan, but a small area has been segregated, at the confluence with Cabo de las Huertas, where TM builds its luxury development, where that value has been set at 3,780 euros, the most expensive in the province. They also exceed 3,000 euros in the Esplanade, but the area that covers the Traditional Center of Alicante, which starts only one street back, the map already establishes a price of only 1,650 euros, which gives an idea of how complex it will be to apply it.
Among the areas with the most expensive square meter There is also the Varadero beach in La Vila (3,130), the first line of l’Albir, in l’Alfàs del Pi (3,130) or Levante, in Benidorm (2,850 euros).
Conversely, the lowest prices are in districts such as that of El Rodriguillo, in Pinoso, or the neighborhood of San Francisco de Asís, of Villena, where the Cadastre fixes 200 euros per square meter, as in Gorga, in the El Comtat region. Some figures in which they also move many small towns in the north of the province or even some neighborhoods in large cities, like Juan XXIII, in Alicante (350 euros), or Los Palmerales, in Elche (350).
In those areas where single-family homes predominate, the Cadastre directly determines the average price per house, instead of establishing it per meter. In this case, the most exclusive area is the beach of the port of Moraira, where the 152 houses covered by the area created by the Cadastre have an average value of 1,555,900 euros. In La Caleta, in Xàbia, it is 1,283,000 euros. In the southern part of the province, each of the 12 front-line homes in the La Veleta urbanization, in Torrevieja, are also worth 1.3 million each, according to these maps.
Beyond the change in the system to calculate the price, the president of the Professional Association of Tax Advisors of the Community, Luis Chinchilla, points out that the important thing would be to harmonize the rate of the Transmission Tax, which in the Community is 10% compared to 6% of Madrid.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.