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V0306-20 10 February 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · valor real

Inheritance Tax cannot be rectified due to lower cadastral value, but IBI refunds are possible

The inquirer asks whether Inheritance and Gift Tax (ISD) can be rectified following a reduction in the cadastral value of an inherited property, and if overpaid Property Tax (IBI) can be recovered. The DGT rules that ISD is based on market value rather than cadastral value, but that a retroactive reduction in cadastral value does allow for an IBI refund.

The question raised

First question raised: Whether the consultant may request a rectification of the Inheritance and Gift Tax assessment as a consequence of the reduction in the cadastral value.

The DGT's ruling

In the ISD, assets must be declared at their real value, a concept that is not assimilated to the cadastral value. Therefore, a reduction in the cadastral value is not a sufficient basis to rectify the ISD self-assessment. However, if the modification of the cadastral value has retroactive effects, the refund of the excess IBI tax liability and the payment of late payment interest are applicable.

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