Find out how to prevent your settlement from becoming a Priority Verification file for the Generalitat.

The Property Transfer Tax (ITP) is levied on most transfers of second-hand real estate. The taxable base for this tax is the actual (or market) value of the assets or rights transferred for consideration or gratuitously.

Since it is impossible for the Generalitat's management offices to verify the large number of real estate transactions carried out in Catalonia, this Administration has established a system that prioritizes certain transactions over others, classifying the different files as follows:

– Priority verification files

– Non-verification files.

Thus, any transaction will be considered a priority verification if the declared value is lower than the cadastral value in effect on the date of transfer, adjusted by the corresponding coefficient based on the property's use. These coefficients are listed in Annex I  of the Valuation Verification Instructions published by the Government of Catalonia.

Consequently, if the declared value does not exceed the minimum amount mentioned, it is very likely that the Administration will initiate a Value Verification procedure.

In this regard, Article 57 of the General Tax Law establishes a set of verification methods. When dealing with real estate, these methods may consist of estimation by reference to cadastral values, average market prices, expert opinions from the Administration, values ​​assigned in appraisals carried out for the purpose of granting mortgages, or the application of previously verified values.

However, using the average market price system not only requires knowledge of the prices assigned to other properties for sale at a given time and place, but also necessitates assessing other factors such as the property's age, state of repair, renovations, and so on. All of this leads the Administration to consider this system less than ideal for verifying property values. The same applies to other systems deemed too generic, such as those based on cadastral values.

Therefore, to verify the value of properties, the Catalan Administration will use either the value assigned for the appraisal of mortgaged properties or an expert report from an Administration technician. The latter system is the most common, and this report is based on the criteria specified in the document "Basic Land and Construction Values ​​for Verifying the Value of Real Estate."

If you require our assistance to obtain more information or have any questions, please contact us via email at ambit@ambitassessor.com or at our offices.

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Marc Ivars Iglesias

Sotsgeneral director at Àmbit Assessor

A graduate in Law and with a Master's degree in Tax and Financial Management from the University of Barcelona, ​​he also holds a Postgraduate Diploma in New Technologies Law from ESADE. He specializes in tax and corporate law.
Before joining Àmbit Assessor as manager in 1999, he worked as head of the Tax and Accounting department at the Busquets Terradellas law firm.
For years, he combined his work with teaching, serving as a professor of Public Finance and Tax Law at the Open University of Catalonia.

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