For imputed property income on Form 210, using the reference value instead of the cadastral value can artificially increase both the taxable base and the tax due.
Both figures originate from the Spanish Cadastre, but they serve different purposes. A value appearing in a title deed is not automatically the correct figure for every tax.
Which value Form 210 uses
Imputed income for urban property is calculated by applying the relevant percentage to the cadastral value shown on the local property-tax bill, adjusted where necessary for the ownership period and ownership share.
The Spanish Tax Agency explains the calculation in its guidance on imputed property income.
What the reference value is for
The reference value is a different measure, used mainly as a benchmark for the taxable base of certain property-related taxes. The Cadastre states that it does not change the cadastral value or replace the figure used by taxes that depend on that value.
The official distinction is explained in the Cadastre’s frequently asked questions.
How to identify the error
- Compare the declared base with the local property-tax bill and cadastral information.
- Check the percentage, imputation period and the owner’s share.
- Do not assume a return is correct merely because it has a filing receipt and recognised payment.
What to do if it has already been filed
If the error caused an overpayment, the correct amount and supporting documents should first be established. Where there is a sound basis, rectification and repayment of overpaid tax may be requested within the applicable time limit.
The receipt proves filing. Reviewing the underlying data shows whether the calculation is correct.
In a real matter reviewed by Spain Tax Experts, another provider had used the reference value and the declared base was more than two and a half times the estimated correct base. Read the anonymised case.