The taxable event is constituted by the ownership of real property (of a rustic or a urban kind), by being the holder of a right of usufruct or leasehold right, or by being the holder of an administrative concession on real estate or public services.
Taxpayers are persons and legal entities (also communities of goods and civil societies) who are the owners of the right subject to this tax.
The tax is managed based on the information obtained from the Padron Municipal (local cadastral Register). The Padron is prepared annually by each municipality and contains information on each property, with all the changes that have occurred.
For tax purposes are considered as property:
1. The parcel or portion of ground closed by a polygonal line that delimits the spatial scope of the ownership right of one or several owners.
2. The different elements of buildings that allow detached use, subject to the particular regime of horizontal property.
3. The set consisting of various private elements mutually linked and acquired in together, the storage rooms and the parking places of exclusive and permanent use of an owner.
4. Those considered to be properties with unique characteristics.
5. The spatial scope of a leasehold right, or an administrative concession, on the immovable property or on the public services to which they are connected.
The real estate can be classified, from the cadastral point of view, in urban, rustic and of special characteristics. Each property is assigned as an identifier a cadastral reference, which is an alphanumeric code that places it in the official cartography of the Cadastre.
For cadastral purposes, constructions are:
• Buildings permanently attached to the ground, regardless of the materials with which they are built, their intended use, whether they are raised on the surface of the ground or are embedded in their subsoil, and that they can be transported and dismantled.
• Industrial, commercial, sports, recreational, agricultural, forestry, livestock and freshwater fishery facilities
• The development works.
It is the rateable value of the property as determined under the rules governing the Real Estate Cadastre. It is susceptible to legal objections.
It is determined objectively from the data of the Real Estate Cadastre and is integrated by the cadastral value of the land and the value of the buildings, applying the assessment criteria of the regulatory legislation of the Real Estate Cadastre.
As a general rule, it can not exceed market value. Market value is the most probable price for which a property free of charge could be sold, among independent parties.
Update by coefficients.
The Law of General State Budgets can update the cadastral values by applying factors that may be different for each class of real estate.
It is the result of applying a reduction in the tax base, due to the increase of the cadastral value as a result of general valuation procedures.
As a general rule, the period of application of the reduction is nine years from the entry into force of the new cadastral values. The amount decreases annually and is the result of applying a reduction coefficient, unique to all properties of the municipality.
Total tax liability
The total tax liability is the result of applying to the tax base the tax rate. Unless the City Council establishes a different one, the minimum and maximum legal rates applicable to Real estate and urban real estate are as follows:
• Urban real estate: between 0.4% and 1.10%
• Rustic properties: between 0.3% and 0.90%
Net Payable Tax.
The net tax payable or net tax liability is obtained by subtracting from the total tax liability the amount of legally permitted allowances.
The law establishes a series of compulsory bonuses and facultative bonuses, generally not applicable to individuals.