Until 2021, heirs declared the value of properties for Inheritance Tax and the authorities could check it afterwards. Law 11/2021 changed the rules: since 1 January 2022, the tax base for property is at least its reference value (valor de referencia) from the Cadastre. If you declare less, the reference value is applied anyway.
What it is and where to check it
The reference value is calculated by the Directorate General of the Cadastre from notarised sales in the area. It is a statistical, area-based value that does not see the specific condition of each home. It can be checked free of charge on the Cadastre's Electronic Office using the property's cadastral reference and the date of death, which is the date that counts in an inheritance.
When it works against you
A home in need of renovation
The reference value does not know the house has not been touched in thirty years. If it needs a full refurbishment, its real value may be clearly below that of the area.
An occupied home or one with an old tenancy
A home with occupants or with rent well below market is worth less to any buyer. The reference value does not reflect that.
Ground floor, no lift or defects
Features that penalise a specific home within its building or street are not always captured by a value calculated by area.
In the Valencian Community, if the heir is the spouse, child or parent of the deceased, the 99% relief keeps the Inheritance Tax impact small. But the declared value still matters for another reason: it is the acquisition value for income tax (IRPF) when you sell the home. Declaring a high value on inheriting reduces the gain taxed later. We explain it in selling an inherited house in Valencia. For nephews and nieces, siblings and other relatives without relief, by contrast, an inflated reference value goes straight into the tax bill.
How to challenge it
The reference value cannot be appealed on its own. It is disputed through the tax, in two ways:
Correct the self-assessment
The tax is filed with the reference value and a correction is then requested, with evidence that the real value is lower: normally a valuation report. The authorities ask the Cadastre for a report before deciding.
Appeal the assessment
If the tax authorities issue an assessment applying the reference value, it can be appealed through an administrative appeal or before the economic administrative tribunal, with the same evidence.
Without a valuation explaining why that particular home is worth less than its area, the claim will not succeed. And do the sums first: challenging only pays if the saving is more than the cost of the valuation and the procedure.
How we handle it at Equus Capital
We review the reference value of every property in the estate, compare it with its real value and calculate the effect on Inheritance Tax, on the municipal capital gains tax (plusvalía) and on the income tax of a future sale. With those numbers we decide with you whether to declare, correct or appeal. If the heir is a non-resident, we handle everything from Valencia. The first consultation is free.
Frequently asked questions
What is the Cadastre reference value?
It is a value calculated by the Directorate General of the Cadastre from sales in the area. Since 2022 it has been the minimum tax base for property in Spanish Inheritance Tax.
Where can I check the reference value of an inherited home?
On the Cadastre's Electronic Office, using the property's cadastral reference and the date of death, which is the date used in an inheritance.
Can I declare a value below the reference value?
You can, but the tax authorities will still apply the reference value. The correct approach is to declare it and then request a correction, providing a valuation that shows the real value is lower.
Should I declare a high value even with the 99% relief?
Often yes, because the value declared on inheriting is the acquisition value for income tax if you later sell. A higher value reduces the gain taxed on the sale.
What do I need to challenge the reference value?
Solid evidence that the real value is lower, normally a valuation report explaining the specific features of the property that the area value does not reflect.