Coefficient?

Information and questions about the Law in Spain and Andalucia.
ashtondav
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Coefficient?

Postby ashtondav » Thu Oct 06, 2016 1:04 pm

Reading Spanish Insight magazine today and there is a notice giving "coefficient values" for various towns including Frigiliana. It says these are used for inheritance, gift, transfer and stamp taxes and duties.

Can someone explain how they are used? For example, for Frigiliana the coefficient is 1,87. So for a property with a catastral value of 200,000€ Does that mean the taxable value is 374,000€ or is it the other way round and the taxable value is 107,000€?

I ask because there is no way our house would fetch the calculated sum if it is used as the multiplier :shock: :shock: :shock:

Beachcomber
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Re: Coefficient?

Postby Beachcomber » Thu Oct 06, 2016 1:09 pm

You multiply the valor catastral by the coefficient so you are correct in the first instance, the taxable value is €374.000.

As a general rule, the longer ago the last municipal revision of the catastral value the higher the coefficient. It is also used when calculating the minimum value that AEAT will accept as a sale price when selling a property.

Miro
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Re: Coefficient?

Postby Miro » Thu Oct 06, 2016 5:33 pm

God knows how they arrive at the valor catastrals, never mind the coefficients. I think our coefficient is 1.1%, but multiplying our valor catastral by that doesn't come anywhere close to what I'd actually sell the place for, even if I was desperate - I'd get more by torching it and claiming on the insurance!
Last edited by Miro on Thu Oct 06, 2016 5:48 pm, edited 1 time in total.
Don't worry about what people think, they don't do it very often

"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.

Beachcomber
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Re: Coefficient?

Postby Beachcomber » Thu Oct 06, 2016 5:39 pm

It isn't 1,1% its just 1,1 so if your valor catastral was €50.000 the fiscal value would be €55.000 not €550 but Torremolinos (if that is where your property is located) is 1,61 so that would make it €80.500.

Miro
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Re: Coefficient?

Postby Miro » Thu Oct 06, 2016 5:45 pm

Sorry, don't know why I put in the %. I knew that! Funnily enough, your example is remarkably close. Even at "average" market value per square metre according to the likes of idealista or Fotocasa (a largely meaningless figure IMHO) my place would have a market value more than 2x that though.
Don't worry about what people think, they don't do it very often

"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.

Beachcomber
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Posts: 9381
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Location: Guadalhorce Valley

Re: Coefficient?

Postby Beachcomber » Thu Oct 06, 2016 5:57 pm

Yes, the catastral values in Torremolinos are very low compared to, for example, Benalmádena and Fuengirola where the fiscal values are far higher than realistic sale values even taking into consideration that fact that the coefficients are lower.


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