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32 Valencian Municipalities Where the IBI Will Rise

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32 Valencian Municipalities Where the IBI Will Rise
Articles in English
agosto 31, 2016

The update of the cadastral values will mean an increase of several municipal taxes in about thirty towns, which will fall in 57


Forget the dreaded catastrazo. It seems difficult that in full process of economic recovery, the municipalities of the province of Valencia will bet on a revision of the cadastral values in their respective municipalities that can trigger the reception of the IBI (Real Estate Tax) of their citizens. However, the brake on a complete overhaul does not imply that the main tax handled by local administrations will remain unchanged. This has been reflected in a report by the consultancy Ayming, an international consulting group operating in 16 countries, where it is argued that the update of cadastral values published last December 30 in the BOE (Official State Gazette) will have effects on up to five taxes. The main one will be given in the IBI.

According to the document, the amount paid annually by homeowners, premises, and land under the IBI will rise this year in 32 municipalities in the province of Valencia while taxation will fall in 57 other localities. This is an effect of the update of the cadastral values that each year makes the Government take into account the latest cadastral review conducted in the municipality. Thus, those administrations that conducted their cadastral review (which sets the values on which a municipal coefficient is then applied to collect the IBI) during the real estate boom will see their receipts reduced if the council does not apply corrective measures. This is the case for up to 57 locations analyzed.

If, on the other hand, the last revision was more than 10 years ago (that of the city of Valencia, for example, is from 1997), the update will mean a considerable increase. This year, in fact, the increase has been 4%. Valencia City Council has cushioned in recent years the impact of this rise with a reduction in the municipal coefficient applied to collect the tax. The decision whether or not to pass on the increase dictated by the Government will remain in the hands of the town councils. They will have the last word on the matter except in the case of cities such as Gandía, where the maximum coefficient is already applied by the high debt carried over from previous years and where a new increase has been established.

Marcos Fernández, property management manager, translates the increases in cadastral values as follows: “If we have a taxpayer who has an urban asset in a municipality whose value report is from 1990 (whose cadastral updating coefficient is 1.08) and whose cadastral value is 200,000 euros, he is going to pay 120 euros more than in 2007.

But the effect on the fiscal pressure of updating cadastral values will not remain, in the IBI, in Fernandez’s opinion. The increase in values also implies a tax increase in both the IRPF (income) as well as in the Tax on Transmissions, Inheritance, and Donations.

In any case, Fernandez explains, the greatest tax impact will occur in large buildings such as shopping malls, supermarkets, or manufacturing centers. It will be these goods that suffer to a greater extent the cadastral changes, since the coefficients affect a greater number of square meters and, therefore, involve a greater increase in the receipt. All calculations, however, are based on the cadastral update published in the BOE. Nevertheless, each municipality must decide if it applies corrective elements so that the receipt of the IBI remains unchanged or if, on the contrary, the increase or the reduction of the cadastral values directly affects the municipal taxes.

The municipalities concerned

Those who increase

Alpuente; Andilla; Anna; Atzeneta d’Albaida; bellreguard; Benicolet; Benissuera; Bugarra; Carrícola; Cofrentes; Daimús; El Palomar; Enguera; Fuenterrobles; Gandía; Godelleta; L’Alcudia de Crespins; La Pobla de Farnals; Marines; Moncada;Novetle; Picassent; Riba-roja;; Rocafort; Rotglà i Corberà; Sant Joanet; Silla; Sinarcas; Tous; Valencia.

Those who decrease

Ador; Agullent; Albaida; Aldaia; Alfafar; Alfara de la Baronía; Alfara del Patriarca; Alzira; Benagéber; Benaguasil; Beniatjar; Benimodo; Benimuslem; Beniparrell; Carcaixent; Casas Bajas; Domeño; El Puig; Estivella; Fortaleny; Gátova; Genovés; Gestalgar; Guardamar de la Safor; La Llosa de Ranes; La Pobla de Vallboona; La Pobla del Duc; Llocnou de la Corona; Llutxent; Massalfassar; Miramar; Montesa; Nàquera; Otos; Palmera; Puçol; Quatretonda; Quesa; Salem; Segart; Sueca; Tavernes de la Valldigna; Titaguas; Torrebaja; Torres Torres; Tous; Tuéjar; Vallanca; Venta del Moro; Villalonga; Villanueva de Castellón; Vinalesa; Xàtiva; Xeraco; Zarra.

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