What if the cadastral value of my property is below market value?

For the calculation of imputed income in the Modelo 210, the cadastral value is generally the relevant figure — not the market value and not the purchase price. In Spain, cadastral values are typically well below market prices. This is not an error but a feature of the Spanish cadastral valuation system. An apartment purchased for €400,000 may have a cadastral value of €120,000. The imputed tax is calculated on the basis of the €120,000 — which reduces the tax burden considerably. The authoritative source for the cadastral value is the IBI assessment (Recibo del IBI), issued annually by the municipality. It contains the cadastral value, the Referencia Catastral and the Año de revisión — the three data points that determine the Modelo 210 calculation. The owner does not generally need to adjust or correct the cadastral value themselves. Cadastral valuation falls under the responsibility of the Dirección General del Catastro and is updated periodically by municipalities. For capital gains (property sale), different valuation bases may be relevant — an Asesor Fiscal should generally be consulted, as the gain calculation is based on acquisition costs and sale price, not the cadastral value.