My new-build home in Spain has no cadastral value yet: how is the tax calculated?

Why a new home can have no value

The cadastral value is set by the Catastro, not by the developer or the notary. When a building is finished, the developer or the owner declares the new construction, and the Catastro then registers the units and gives each one a value. That process can take months, sometimes longer. Meanwhile your first IBI receipt may be missing, or may only cover the land of the plot.

None of this suspends the non-resident tax. From the day after completion, the home is yours and imputed income runs.

The fallback rule

Spanish law plans for this gap. When a property has no cadastral value, or the value has not yet been notified to the owner, the imputed income is generally calculated by applying 1.1 % to 50 % of the purchase value (strictly, the higher of the price paid and the value used for wealth-tax purposes). The rate is then the usual one for your country of residence.

Here is how it works for a buyer who completed on 1 January and kept the home empty all year:

• price on the deed: 300,000 €
• half of that: 150,000 €
• 1.1 % of 150,000 € = 1,650 € of imputed income
• tax at 19 % (EU or EEA resident): 313.50 €
• tax at 24 % (UK, US or other resident): 396 €

If completion took place mid-year, prorate by the days owned, as explained in buying during the year.

When the value finally arrives

Once the Catastro records the home, the new value shows up on the IBI receipt and on the owner's cadastral certificate. From then on, use that value with the town's normal coefficient (1.1 % or 2 %). If the Catastro's notification refers back to earlier years, check whether the returns you filed with the fallback figure need adjusting; our page on correcting a Modelo 210 explains the options.

What to keep in your file

• the purchase deed (escritura) with the price;
• any letter from the Catastro or the town hall about the new construction;
• the first IBI receipts, even partial ones;
• your NIE and the payment receipt for each return.

If you are unsure whether a value already exists, where to find the cadastral value shows how to look it up online.