“Catastro Urbano” vs “Catastro Rustico”

“Catastro Urbano” vs “Catastro Rústico”: Understanding Property Classification in Spain

When dealing with property in Spain, particularly in regions like Valencia, it’s crucial to understand the distinction between “Catastro Urbano”(Urban Cadastre) and “Catastro Rústico” (Rustic Cadastre). These terms refer to different types of land classifications that have significant implications for how your property is taxed, used, and valued.

A common scenario, involves a property where the house is registered under “urbano” (urban), while the surrounding land is classified as “rústico” (rustic). This situation often leads to questions about the true nature of the property and how it should be treated under Spanish law.

What is “Catastro Urbano”?

The term “Catastro Urbano” refers to the urban classification of a property within the Spanish Cadastre system. The Cadastre is a comprehensive register that records the details of properties, including their location, boundaries, usage, and ownership, for taxation and administrative purposes. Properties classified as “urbano” typically include those located within designated urban areas, such as cities, towns, or residential zones, and are subject to urban planning regulations.

Characteristics of “Catastro Urbano”:

1. Urban Development:

Properties classified as “urbano” are situated in areas where there is existing infrastructure such as roads, water supply, sewage systems, and other urban services.

2. Zoning and Usage:

These properties are often subject to urban planning regulations, which may include specific rules about construction, renovation, and land use.

3. Council Tax (IBI Urbano):

Properties classified under “Catastro Urbano” are subject to the **Impuesto sobre Bienes Inmuebles (IBI)**, a local property tax known as **IBI Urbano**, which is typically higher than the tax levied on rustic land due to the increased value and access to urban services.

What is “Catastro Rústico”?

On the other hand, “Catastro Rústico” refers to properties classified as rustic within the Cadastre system. These properties are generally located in rural areas, such as farmland, forests, or undeveloped land, and are governed by different regulations compared to urban properties.

Characteristics of “Catastro Rústico”:

1. Rural Setting:

Properties classified as “rústico” are typically found in rural or undeveloped areas, often lacking the infrastructure and services associated with urban areas.

2. Agricultural and Natural Use:

The primary uses of rustic land often include agriculture, forestry, or other activities related to the natural environment. Construction on rustic land is usually heavily regulated, and in many cases, it may be restricted to agricultural or low-impact developments.

3. Council Tax (IBI Rústico):

The local property tax for rustic land is known as **IBI Rústico**, which is generally lower than the tax for urban properties due to the different valuation criteria and the limited availability of urban services.

Urban House on Rustic Land. Is this possible?

A situation where the villa is classified as “urbano” but the land is “rústico,” is not uncommon, especially in rural or semi-rural areas in Spain. This mixed classification occurs when a residential property is constructed on land that is designated as rustic according to local development plans.

Why Does This Happen?

– Local Development Plans

The classification of land as rustic or urban is determined by the Town Hall (Ayuntamiento) as part of its overall urban development plan (Plan General de Ordenación Urbana – PGOU). Even if a residential property (such as a villa) is built on this land, the land itself retains its rustic classification unless the Town Hall reclassifies it as urban. This process of reclassification is complex and often depends on broader urban development strategies, availability of infrastructure, and other regulatory considerations.

– Legal Constructions:

It’s important to note that the construction of residential properties on rustic land must comply with specific legal requirements. If the villa was built with the necessary permits and approvals, it can be classified as an urban construction for the purposes of taxation (IBI Urbano), even though the land remains classified as rustic.

Tax Implications: IBI Urbano vs. IBI Rústico

The dual classification of your property means you will be subject to two different types of property tax:

IBI Urbano for the Villa:

Since the house is classified as an urban construction, you will pay IBI Urbano on the villa. This tax is calculated based on the cadastral value of the building and is generally higher due to the property’s urban status.

IBI Rústico for the Land:

The surrounding land, being classified as rustic, is subject to IBI Rústico. This tax is typically lower because the land is valued differently, considering it lacks the infrastructure and services of urban land.

This separation in tax categories reflects the mixed nature of the property’s classification within the Cadastre system.

Legal and Practical Considerations

Understanding the implications of this mixed classification is crucial for several reasons:

1. Future Development:

If you plan to further develop the property, such as by adding new buildings or expanding the existing villa, the rustic classification of the land could impose significant restrictions. You would need to consult with local authorities to understand what is permitted under the current land use regulations.

2. Reclassification Possibilities:

In some cases, property owners may seek to have their land reclassified from rustic to urban. This process involves navigating local planning regulations, which may include applying for a reclassification through the Town Hall. However, reclassification is not guaranteed and often depends on broader urban planning considerations.

3. Property Valuation and Sale:

When selling the property, the mixed classification might affect its market value. Potential buyers need to be aware that while they are purchasing a villa classified as urban, the surrounding land remains rustic, which might limit its use or future development.

4. Tax Considerations:

The dual tax obligations (IBI Urbano and IBI Rústico) must be managed carefully to ensure compliance with local tax laws. Failure to pay the correct taxes can lead to penalties or other legal issues.

Example

I have a property in Valencia the villa is registered as urbana but the land is registered as rustica, so what is it Urban or Rustic.

TLACORP ANSWER:

From which we understand from your email, you would like to know what is the classification from your property when you have two kinds of registries, “urbana” for the house, and “rustic” for the land.

These kind of situations are quite normal for the properties in rustic land, where the land is always rustic, and pays Council Tax for rustic (IBI rustico), and the houses are considered as per Council Tax of urbana (IBI urbano).

If the land is rustic, is because the Town Hall, in the Plan of Development in the area, considers the land as rustic. The land will be always considered as rustic save if the Town Hall changes its classification into urban. So, from the information provided, I suppose you have been informed by the Town Hall the land is rustic. If not, try to visit them to confirm this point.

While the land is rustic, residential constructions will be considered as urbano exclusively for Council tax purposes, and only the constructions, not the land. So, the Council Tax will be paid as “urbano”, for the house, and “rustic” for the land.

Thus, we confirm your situation is normal, and your land is rustic, although you are receiving tax considerations of urban from the house.

Conclusion: Clarifying Property Classification

In conclusion, your property’s situation, where the villa is classified as “urbano” and the land as “rústico,” is a normal and recognized scenario within the Spanish property system. The key takeaway is that the property’s classification for tax purposes reflects its mixed nature: urban for the residential construction and rustic for the land. This dual classification is primarily a result of how local development plans define and regulate land use within the municipality.

If you have any uncertainties or plan to make changes to the property, it’s advisable to consult with a local legal expert or property advisor who can provide guidance based on the specific details of your property and the applicable local regulations. They can assist with any potential reclassification efforts, ensure that you are meeting all legal obligations, and help optimize the property’s value and usage.

TLACORP SLP