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An analysis by Garrigues, Taxand Spain
Spanish courts are increasingly questioning the automatic use of the cadastral reference value for taxing real estate transactions. The Supreme Court recently reaffirmed that interior inspections are essential for accurate valuations, annulling cases based solely on exterior photos. Meanwhile, the Constitutional Court has admitted a question of unconstitutionality, raised by the Andalusian High Court, arguing that the “pay first, challenge later” model may breach constitutional principles of economic capacity and legality.
Gonzalo Rincón from our Spanish member firm, Garrigues, has published an article on topic, noting that recent judgments suggest the reference value system, introduced to combat tax fraud, may lack sufficient safeguards and could infringe taxpayers’ rights by presuming values without individual assessment.
You can read the full article here.
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