We show you how to determine the value of an inherited property in Moraira-Teulada: value for the Inland Revenue and value for the distribution of the inheritance.
When we inherit a property in Moraira-Teulada, one of the most important things is to know what value we should assign to our property. This will allow us, on the one hand, to settle the inheritance tax and, on the other hand, to distribute the inheritance fairly among the different heirs.
However, determining the price of an inherited property in Moraira-Teulada is not always easy.
On the one hand, the heirs are faced with the problem of not knowing which official source to turn to to proceed with the valuation: an official appraiser, a real estate agency, the authorities themselves… On the other hand, when the property is passed down to several heirs, it is not always easy to arrive at a price that is fair to all parties.
On top of this situation, there is the problem caused by the change in regulations that came into force in 2022 regarding the cadastral reference value, which directly affects how property is valued upon inheritance.
To try to shed some light on this aspect, HispaniaHomes explains how to calculate the value of an inherited property in Moraira-Teulada, a process that can also be applied to any other municipality in the area.
Value of a property for the Inland Revenue
On 1 January 2022, the Inland Revenue changed the system for taxing real estate by bringing in the new cadastral reference values. This marked a turning point for taxes such as inheritance tax, which from now on takes this new administrative value as the basis for its calculation.
Thus, if until 2022 the deed value was taken as the taxable base for inheritance tax, now it is the cadastral reference value given to the property by the Inland Revenue (as long as this is higher than the deed value).
To consult the cadastral reference value of a property in Moraira-Teulada to calculate what you will end up paying in inheritance tax, you can consult the Electronic Headquarters of the Land Registry.
For more information on how inheritance tax works in the Valencian Region, you can download our Inheritance Guide, a PDF in which we resolve the most common doubts on this tax when inheriting a property in this area.
Inheritance Tax in the Valencian Region
Frequently Asked Questions
We provide answers to the most frequently asked questions regarding the inheritance of homes in this region
Value of a property for dividing an inheritance
Meanwhile, if you’re looking for a fair distribution of the inheritance among the heirs at the time of the estate division, you will have to obtain a market price valuation from a real estate agency.
A market valuation will allow us to determine the real price of the property, i.e. the price that the property would fetch on the open market. Only in this way can we compare the properties that make up an estate to be able to fairly divide it among the various heirs.
Example of a valuation of inherited property
Let us imagine that we are two siblings who have just inherited two properties from our mother.
Upon checking the Electronic Headquarters of the Land Registry, we find that each of them has a cadastral reference value of 90,000 euros. However, if we go on to obtain a market price valuation, we discover that one of them is valued at 70,000 euros and the other at 100,000 euros (because one has been renovated, is located in a better area or simply because demand has increased recently in the area).
If we were to use the cadastral reference value to divide the inheritance, we could think that it would be fair if each sibling kept one of the properties. However, we should only be guided by this value for the payment of taxes such as inheritance tax (it would also affect wealth tax and transfer tax). If what we want is a fair distribution of the inheritance, we will always have to look at the market value.
Discover a property’s market value
There is only one way to find out the market value of a property in Moraira-Teulada: by going to an estate agent specialising in the area. This is the only way to find out the real value of your property, taking into account factors that directly affect the property market in the area: demand, price per square metre, evolution…
HispaniaHomes is a real estate agency in Costa Blanca that specialises in the municipalities of Moraira, Benissa and Jávea. If you need a professional market valuation that reflects the reality of the area, get in touch with us.
Below is our online property evaluator, which can give you an idea of the price your property could obtain on the market. Remember that for a more accurate valuation, a real estate agent’s professional opinion is always required.
