New Value of Reference for Tax Purposes: “Valor de Referencia”

If you are buying, selling, inheriting or receiving a property as a gift in Spain, the Valor de Referencia in Spain (Cadastral Reference Value) can have an important impact on the taxes payable. Introduced for tax purposes from 1 January 2022, it is particularly relevant to Transfer Tax, Inheritance Tax and Gift Tax.

The important point is that the tax value of a property may be different from its actual purchase price or market value. For this reason, checking the Valor de Referencia before committing to a property transaction can avoid unpleasant surprises.

How Does the Valor de Referencia Affect Property Tax?

Suppose you buy a resale property in Andalucía for €300,000, but its Valor de Referencia is €500,000. As a general rule, Transfer Tax will be calculated on €500,000. At Andalucía’s current general rate of 7%, this would mean €35,000 in Transfer Tax rather than €21,000.

If the price or declared value is higher than the Valor de Referencia, however, the higher amount will normally be used as the taxable base.

The reference value is determined by the Spanish Cadastre using information derived from property transactions formalised before Notaries, applying valuation criteria to properties according to their characteristics and location. This can sometimes produce a value that does not accurately reflect the circumstances of a particular property.

What If the Reference Value Is Too High?

In our experience, many properties have a reference value below their actual sale price and therefore it causes no practical problem. However, we have also dealt with cases where the Valor de Referencia was substantially higher than the real value of the property.

This may happen for different reasons, including incorrect cadastral information or characteristics attributed to the property that do not correspond with reality. In these cases, it is important to examine not only the final figure but also the information and methodology used to calculate it.

Can the Valor de Referencia Be Challenged?

Yes. A reference value that does not properly reflect the property can be challenged. The appropriate procedure and evidence will depend on the circumstances of each case.

At Bravo Legal, we have successfully handled challenges involving the Valor de Referencia. Our experience has shown that one particularly important area to examine is the Certificate of Grounds for the Calculation of the Reference Value and whether the information used to determine the value contains errors or inconsistencies.

Presentation on challenging the Valor de Referencia and identifying errors in its calculation.

In April 2026, Miguel Ángel Bravo was invited to participate in a professional seminar in Madrid where he presented our approach to challenging the reference value through the detection of errors in the Certificate of Grounds for its calculation.

Miguel Ángel Bravo speaking in Madrid about challenges to Spain’s Valor de Referencia.

During the seminar, we also presented a real case in which we succeeded in correcting both the reference value and the cadastral value in a very short period of time. This practical experience is particularly useful when analysing whether a reference value can realistically be challenged and what evidence may be required.

Professional seminar in Madrid on the Spanish Valor de Referencia and its challenge.

The legal framework has also recently been considered by the Spanish Constitutional Court. In its Judgment 13/2026, of 12 February 2026, the Court upheld the constitutionality of the reference value system. This does not prevent a taxpayer from challenging the application of an incorrect reference value in an individual case.

What Should You Do Before Buying or Selling?

Ideally, the Valor de Referencia should be checked before signing a binding purchase contract. This allows a buyer to understand the potential tax cost in advance and, where the value appears clearly excessive, to obtain professional advice before completing the transaction.

For sellers, identifying an unusually high reference value before putting the property on the market can also be useful. A problem discovered early may sometimes be investigated or addressed before it becomes an issue for a prospective buyer.

Where a disputed reference value affects a completed transaction, the appropriate strategy must be considered individually. Depending on the circumstances, this may involve paying tax using the reference value and subsequently seeking rectification and a refund, or using the relevant procedures to challenge the valuation. Professional valuation evidence may be particularly important.

Valor de Referencia Advice on the Costa del Sol

Bravo Legal combines experience in Spanish property conveyancing, taxation and Valor de Referencia challenges. This allows us to identify potential problems as part of the wider legal review of a purchase or sale rather than treating the tax issue in isolation.

If you are buying or selling a property in Málaga province, you can contact us for advice or a no-obligation quotation. If you provide us with the property’s Referencia Catastral, we can also check its current Valor de Referencia without charge as part of your enquiry.

You can also find further information about our legal services on our Property Conveyancing page.