Skip to main content
2017 Wealth tax

4.2.1. A) Real estate of an urban nature

This section must describe the urban assets whose ownership corresponds to the declarant.

VALUATION RULES

Real estate property of an urban nature, as well as the rights over these property acquired under timeshare contracts, part-time ownership or similar formulas, provided that they involve partial ownership of the property, will be computed taking as reference the highest value of the three following:

  • Cadastral value recorded in the receipt corresponding to the year 2017 of the Real Estate Tax.
  • Value verified by the Administration for the purposes of other taxes.
  • Price, consideration or acquisition value that will be the result of adding to the actual acquisition amount the cost of investments and improvements as well as expenses and taxes inherent to the acquisition, excluding interest, that have been paid by the acquirer.

Leased properties

Leased urban properties will be valued in accordance with the general rule previously mentioned.

However, homes and business premises whose lease contracts were entered into prior to May 9, 1985, will be valued by capitalizing the annual income accrued at 4%, when the result of this operation is lower than the valuation resulting from the application of the above rules.

For these purposes, the following formula may be used to calculate said capitalization:

Capitalization = accrued annual income * (100/4)

Right of bare ownership

The value of the right of bare ownership will be computed by the difference between the total value of the asset and the value of the usufruct that has been established over it.

In the event that the real right that falls on the property is a lifelong usufruct, which in turn is temporary, the bare property will be valued, applying the usufruct valuation rules, that which attributes the lowest value to the bare property.

To determine the value of the usufruct constituted over the asset, the valuation standards contained in section “M. Real rights of use and enjoyment.

Properties under construction

When real estate of an urban nature is in the construction phase, the amounts that have actually been invested in said construction until the date of accrual of the Tax will be estimated as the equity value, in addition to the corresponding equity value of the lot.

In the case of horizontal property, the proportional part in the value of the lot will be determined according to the percentage established in the title.

COMPLETION

A1) Primary residence

The habitual residence of the taxpayer who meets the conditions to benefit from the tax accrual date of the exemption will be declared in this heading up to the maximum amount of 300,000 euros.

Both the right of ownership in full ownership of the habitual residence, as well as the right of usufruct or other real right of use and enjoyment over it of which the taxpayer is the owner, must be included (these latter rights should not be declared, therefore, in section "M. Real rights of use and enjoyment" ).

In column "Key" the ownership of the asset will be indicated according to the following detail:

  • P : if the ownership of the property is in full ownership, even if said ownership is shared.
  • U : if the ownership of the property is constituted by a right of usufruct or another real right of use or enjoyment.

In the column "Situation" you must select from the following keys the one that corresponds to the situation of the home:

  • Key 1. Property with land registry reference located anywhere in Spain, except the Basque Country and Navarre.
  • Key 2. Property located in the Autonomous Community of the Basque Country or in the Foral Community of Navarra.
  • Key 3. Property with any of the above statuses but without a land registry reference. 
  • Key 4. Property located abroad.

In column “Cadastral reference” the information that appears on the Real Estate Tax receipt will be recorded.

Likewise, the data referring to the situation of the property must be recorded: public road, number, municipality and province.

In the column “Value” the total value of the habitual residence that results from applying the valuation rules set out above will be indicated.

The program will calculate the exempt value up to the maximum amount of 300,000 euros and will show, where appropriate, in box 62 the non-exempt excess.

A2) Other urban properties

The rest of the urban properties owned by the taxpayer will be included in this heading, stating the following information:

In column "Key" the ownership of the asset will be indicated according to the following detail:

  • P : if the ownership of the property is in full ownership, even if said ownership is shared.
  • N : if the ownership of the property is constituted by the right of bare ownership over it.
  • M : if the ownership of the property is constituted by a right over it acquired under timeshare contracts, part-time ownership or similar formulas, provided that they involve partial ownership of the property.

If the right held does not entail partial ownership of the property, it must be declared in section "M. Real rights of use and enjoyment".

In the column “Type” the one that corresponds to each urban property will be selected, according to the following detail:

  • V : if it is housing
  • L : if it is local
  • OR : if they are properties of an urban nature other than the previous ones, as is the case of plots of land.

In the column "Situation" you must select from the following keys the one that corresponds to the situation of the home:

  • Key 1. Property with land registry reference located anywhere in Spain, except the Basque Country and Navarre.
  • Key 2. Property located in the Autonomous Community of the Basque Country or in the Foral Community of Navarra.
  • Key 3. Property with any of the above statuses but without a land registry reference. 
  • Key 4. Property located abroad.

In column “Cadastral reference” the information that appears on the Real Estate Tax receipt will be recorded.

Likewise, the data referring to its situation must be recorded for each property: public road, number, municipality and province.

In the column “Value” the value of the property resulting from applying the valuation rules set out above will be indicated.