How is your property registered in Catastro office? 

The General Directorate of Cadastre activated an extraordinary regularization process to locate properties whose owners (individuals or companies) are not taxed for them or do so incompletely. It is what is called the “cadastral amnesty”, which is a process very similar to the famous tax amnesty and also to avoid a fine of 6,000 euros will regularize hundreds of thousands of properties.

In Spain there are many buildings and building alterations made without declaring the Cadastre (for example, a field that has shed converted into housing finish, an extension of the house, a room on the terrace of his penthouse, …), thousands square meters of apartments, houses and plots undeclared and may regulate using an architect and a lawyer. It is what is called the cadastral amnesty, very similar to the famous and controversial tax and also to avoid a fine of 6,000 euros will regularize hundreds of thousands of properties amnesty process.

As result of this “non declared constructions” the Council Tax is lower than it should be, also affecting to proper calculation of Capital Gains on sales!. This is specially important in Villas or properties with “space” and land , where owners have extended their constructions without declaring them in Catastro.

Properties which have not all he constructions declared are paying less taxes, and will pay less Capital Gains in an eventual sale. This is what this is now in process to be sorted.

Whay register constructions in Cadastro office in Spain?

Legal Compliance

• Official Recognition: By registering your construction in the Cadastre, you ensure that your property is officially recognized by the Spanish government. This registration is crucial for establishing the legal existence of the building.
• Property Boundaries and Ownership: The Cadastre provides an official record of the property’s boundaries, size, and use, helping to avoid disputes with neighbors or the government about property lines or ownership.

Property Taxes (IBI)

• Calculation of Property Tax: The Cadastre Office information is used to calculate the Impuesto sobre Bienes Inmuebles (IBI), which is a local property tax. The tax amount is based on the cadastral value, which reflects the characteristics of the property, including its size, location, and usage.
• Accurate Taxation: If your construction is not registered, your property tax may not accurately reflect the value of the property, potentially leading to fines or penalties once the unregistered construction is discovered.

Facilitating Property Transactions

• Property Sale: When selling your property, having it registered in the Cadastre is crucial. Buyers, notaries, and real estate agents will typically require an up-to-date cadastral record to ensure that the property is accurately described in all legal documents.
• Obtaining a Mortgage: Banks often require a cadastral record as part of the due diligence process before approving a mortgage. The record provides essential details about the property’s value and characteristics.

Avoiding Fines and Legal Issues

• Fines for Non-Registration: Failure to register a construction can lead to fines and other legal consequences from local authorities. The Cadastre is linked with various government departments, so discrepancies between cadastral records and actual property can trigger inspections and penalties.
• Regularization of Unregistered Constructions: If you have made any modifications or new constructions that are not reflected in the Cadastre, registering them helps to regularize the situation and avoid potential legal issues.

Utility and Infrastructure Connections

• Access to Public Services: Registration is often necessary to connect utilities like water, electricity, and gas. Local authorities may require that the property is correctly registered in the Cadastre before granting these connections.
• Infrastructure Development: The government uses cadastral information to plan and develop local infrastructure, including roads, public services, and zoning. Registered properties are considered in these plans, ensuring they are included in community services and developments.

Inheritance and Succession

• Clear Succession: For inheritance and succession planning, having your property correctly registered simplifies the process. It ensures that your heirs have a clear and undisputed claim to the property, reducing the potential for legal disputes.
• Valuation for Inheritance Tax: The cadastral value is often used as a basis for calculating inheritance tax, making it essential that the property is accurately registered.

Urban Planning and Development

• Compliance with Urban Regulations: Registration ensures that your property complies with local urban planning and zoning laws. If your construction is not registered, it may be deemed illegal, leading to possible demolition or other sanctions.
• Participation in Development Plans: Registered properties are considered in urban development and renovation plans, which could impact the future value and use of your property.

Cadastral inspections are common in Spain

In order to surface these irregular properties Directorate General for Cadastre activated an extraordinary regularization process to locate properties whose owners (individuals or companies) are not taxed for them. It is what is called regulatory procedure cadastral 2013-2016 and was included by the Ministry of Finance between tax measures that the government promoted late last year to ensure the consolidation of public accounts and combat fraud.

What to do if your construction is not declared in Catastro office?

This process must be started by the one who appear as “owner” of the property for Council Tax purposes. It is necessary to fill a form, and presenting special plans from architects, and start the regularization process.

Once the process of regularization is complete, owners may be requested to pay back bills up to 4 years, for the difference of Council Tax not paid due to this irregular declaration.

Therefore, if any of your property is not on the Cadastre, or being there, a part has not been declared cadastral on it, you can regularize their registration data with plans from architect and other expenses,  without having to satisfy penalties for it, and to avoid a fine of up to 6,000 euros.

Also, the regularization will serve to update your property, avoiding future incidents, especially in case you decide to sell your property.