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PROPERTY VALUES

When going through the purchase process, you will come across different `property values which are attached to the property. This can be very confusing. It may be helpful to understand these different values so We have given an explanation below of each of the values attached to a property.
Catastral value
Fiscal value
Mortgage Valuation value
Market value
Declared value/Sales price

Catastral value

The “catastro” office is the second form of property registration, and deals more with the exact location, physical description and boundaries; unlike the property registry which deals more with ownership and title. The “catastro” office is also
the source of the “valor catastral”, which is the assessed value of the property used in the calculation of local rates. The figure is normally considerably lower than the real market value. If you are purchasing a new property this will not have been assigned a “valor catastral”, it therefore becomes the buyer’s responsibility to register the property at the “catastro” office for this tax. An existing property should already have its own “valor catastral”. The annual real estate tax IBI, charged by the municipality, will be calculated based on the “valor catastral”.

Fiscal value

This is the value assessed by the tax authorities and is the minimum value that should be declared on the title deed when a sale takes place.

Mortgage Valuation value

This is the value assessed by a bank for mortgage approval purposes.

Market value

Depending on the market, a real estate agent or property valuer will give an estimate of a property’s current market value.

Declared value/Sales price

The declared value is the sales price of the property. All the costs and taxes are based on the sales
price.

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