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Heritage 2023

4.2.1. A) Real estate of an urban nature

This section must describe the urban property owned by the declarant.

General rule of valuation

Urban real estate, as well as rights over these assets acquired under timeshare contracts, part-time ownership or similar formulas, provided that they involve partial ownership of the property, will be computed using as a reference the highest value of the following:

  • Cadastral value recorded in the receipt for the year 2023 in the Real Estate Tax.

  • Value determined or 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 purchaser.

Leased properties

Leased urban properties will be valued in accordance with the general rule discussed above.

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

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

Capitalization = annual accrued income (100/4)

Right of bare ownership

The value of the right of bare ownership will be calculated by the difference between the total value of the property and the value of the usufruct that has been established on it.

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

To determine the value of the usufruct established on the property, see the valuation rules contained in section “M. Real rights of use and enjoyment.

Properties under construction

When urban real estate is under construction, the assets value will be estimated as the amounts that have actually been invested in said construction up to the date of accrual of the Tax, in addition to the corresponding assets value of the land.

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

Completion

If you have to relate more elements than those contemplated in the program, you can declare them cumulatively in the last box. In this case you will only have to fill in the data relating to the description and the valuation.

A1) Habitual residence

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

Both the right of full ownership over the habitual residence and the right of usufruct or other real right of use and enjoyment over it held by the taxpayer must be included (these latter rights should not, therefore, be declared 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:

  • Q: If the ownership of the property is in full ownership, even if said ownership is shared.

  • OR: if the ownership of the property is constituted by a right of usufruct or another real right of use or enjoyment.

You will have to enter the percentage of ownership or usufruct in the corresponding column.

If you have part ownership and part usufruct, the completion will be done by differentiating the percentage of ownership from the percentage of usufruct and filling in the data corresponding to each of them; To do this, within the section of the property that constitutes your habitual residence, click on "add property".

In 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 in the Autonomous Community of the Basque Country.

  • Key 3. Property located in Navarra.

  • Key 4 . Property without cadastral reference.

  • Key 5. Property located abroad.

Likewise, the data regarding the location of each property must be recorded: public road, number, municipality and province.

In column “Cadastral reference” the one that appears on the Property Tax receipt will be entered.

The data regarding the situation of the property must also be recorded: public road, number, municipality and province.

In column "Value used" will reflect the key that corresponds to the valuation rule used.

In column “Value” the total value of the habitual residence resulting 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 applicable, in box 62 the non-exempt excess.

A2) Other urban properties

This section will include all other urban properties owned by the taxpayer, stating the following information:

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

  • Q: 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 by virtue of timeshare contracts, part-time ownership or similar formulas, provided that they involve partial ownership of the property.

In the column corresponding to ownership, you will state the percentage you hold. If you have different rights over the same property, the completion will be done by differentiating the percentage of ownership of each of them and recording the data corresponding to each one; To do this, within the property, click on "add 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 column “Type” the one corresponding to each urban property will be selected, according to the following details:

  • V: If it is about housing

  • L: If it is about premises

  • EITHER: If it concerns urban properties other than the above, such as plots of land.

In 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 located in Navarra.

  • Key 4 . Property without cadastral reference.

  • Key 5 . Property located abroad.

In column “Cadastral reference” the one that appears on the Property Tax receipt will be entered.

Likewise, the data regarding the location of each property must be recorded: public road, number, municipality and province.

In column "Value used" will reflect the key that corresponds to the valuation rule used.

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