What is the difference between cadastral value and market value?

In Spain, three different property values exist and should not be confused. The cadastral value (Valor catastral) is the administrative value assigned by the cadastral authority. It is generally the relevant figure for the Modelo 210 calculation on owner-occupied properties. Cadastral values typically stand at 30% to 60% of market value — the tax burden is therefore considerably lower than the market price might suggest. The market value (Valor de mercado) is the actual market price at which a property trades. It is generally not relevant for the Modelo 210 on owner-occupied properties — the tax is calculated on the cadastral value. The reference value (Valor de referencia) was introduced in 2022 and is more closely aligned with market prices. It is used for certain taxes such as inheritance and gift tax or property transfer tax (ITP), but is generally not relevant for the Modelo 210 calculation on owner-occupied properties. In practice: the Modelo 210 tax on owner-occupied properties is calculated on the substantially lower cadastral value. An owner who purchased a property for €500,000 with a cadastral value of €150,000 pays tax on the basis of the €150,000.