A new way of calculating taxes for buying or inheriting a home comes into effect from January 2022.
From 1 January 2022, a new reference value will come into force that will determine the taxes to be paid by anyone who buys a second-hand home or who inherits or receives a property as a donation. This new method of calculation will mean an increase in the taxation of the different taxes it affects: the ITP for those who buy a second-hand home, Inheritance and Gift Tax and Wealth Tax.
Thus, the taxpayer will not pay tax on the cost of the house, but on its market value: and the law presumes that this is the reference value approved by the General Directorate of Cadastre. What does this modification mean? This market value will be calculated on the basis of property sale prices, according to information provided by Notaries and Registrars, so there will be no need to visit the property and, therefore, there will be no need to know the state of conservation, materials used, whether it has been refurbished or not, etc. Likewise, it will not take into account if the property is to be refurbished and the buyer has bought it cheaper than the market price.