IMPORTANT! New cadastral reference value. Necessary to check before signing the earnest money and option contract.

From the 1st of January 2022 the new reference value will be applied. It is very important to check it before signing a contract to reserve a property for purchase in order to take into account the total costs and to avoid surprises.

As of that date, the value that the administration has for the houses has been updated and in most cases increased. The value is not available for all houses yet.

The problem arises when this value is higher than the price that the seller and buyer have agreed upon and for which a property is to be sold.

In these cases the law obliges you to pay the purchase tax on the value fixed by the administration and in some cases we have seen that this value means a few tens of thousands of euros extra for the buyer when it comes to paying the tax.

If the value fixed by the administration is higher, the buyer can either pay the tax based on this value or pay it on the actual purchase price (lower in this case).

If you pay for the value fixed by the administration, you can claim the difference back and for this we recommend a professional valuation of the property and in some cases also a notarial deed (if the state of conservation of the property is not good). If the administration does not agree with your claim, at least you will not have to pay the fine and interest.

If you pay for the purchase value and it is lower than the value set by the administration, you will certainly receive a value check from the administration and they will ask you for the difference for the tax, plus the interest and the fine. You will also be able to defend yourself, especially if you have made a professional valuation and notarial deed, but if you lose, you will have to pay the interest and the fine.

If you want to check the reference value of your property, click here or write to us!