Why is imputed income 1.1% or 2% of the cadastral value?

The logic behind two percentages

Cadastral values are set town by town in a document called the ponencia de valores. Some municipalities last carried out a full revaluation decades ago, so their values sit far below today's market. Others revised them recently and their figures are closer to reality.

To avoid penalising owners in recently revised towns, the law uses a lower coefficient for them. A town whose general collective valuation took effect from 2012 onwards uses 1.1%. A town whose last general revision is older uses 2%. The rule covers imputed income for 2023 to 2026.

What it changes in euros

Take the same cadastral value of €100,000 in two different towns.

	2% town	1.1% town
Imputed income	€2,000	€1,100
Tax at 19% (EU/EEA)	€380	€209
Tax at 24% (UK, US and others)	€480	€264

The gap is significant, which is why getting the coefficient right matters as much as the value itself.

How to find out which one applies

You cannot tell from the receipt alone. You need the year of the town's last general valuation. Our coefficient checker looks this up by municipality, and each town page in the cities directory shows the coefficient and the year of its ponencia.

A few points to bear in mind:

• the coefficient is the same for every property in the municipality, whether flat, villa or garage;
• a new revision can move a town from 2% to 1.1% for later years;
• partial updates of values do not count as a general revision.

And after 2026?

A reform is announced for 2027 that changes how imputed income is calculated in the ordinary Spanish income tax. How it will apply to non-residents is not settled yet. See what changes in 2027.