Regularisation of the Cadastral and Property Records
By Armin Gutschick y Anja Sämann-Gutschick
At the end of 2012, the Spanish government decided to update the Cadastral database. This gave property owners in Ibiza the opportunity to regularise their situation and update previously undeclared property details in the Cadastre without being fined. For this reason, the regularisation is also known as “Cadastral Amnesty”. This regularisation procedure will mean an addition income for the municipalities where these properties are located given that the cadastral value, which is the base for calculating property tax (IBI) and capital gains tax, will increase accordingly.
Since before the government started the cadastral regularisation process, home owners have been obliged to inform the Cadastre of any building alteration to their property within 2 months, allowing for the cadastral database to be updated. Failing to do so could result in a fine of up to 6,000 €. The regularisation process will not enter into force across the whole of Spain simultaneously – the Cadastre will publish when and where it will take place in the Spanish Official State Gazette (BOE). The regularisation has already been completed in the Sant Josep and Sant Antoni municipalities whilst in those of Santa Eulària, Sant Joan and Eivissa it is still underway.
Regularisation can be obtained either by voluntary request of the property owner or by the cadastre itself. In this case, the owner will then receive notice of the new cadastral value. The owner will have to pay a special 60€ cadastral regularisation tax as well as property tax for the former four years, calculated on the basis of the land registry cadastral value resulting from the revision. To voluntarily start the procedure, the property owner will have to both fill in a 906-N form and present the construction plans and building specifications. Only buildings and structures built on legal property can be regularised. As a general rule of thumb, the “Cadastral Amnesty” cannot be used to legalise buildings which do not comply with planning laws. This does not apply to cases in which the violation of building rules has expired and, therefore, vested rights apply.
The cadastral regularisation has no implication on the Land Registry; nevertheless, it is advisable to register any undeclared areas of a property. The rectification of data for registered lands can be done through the presentation of a declaration of new works. The process involves adding all existing structures, extensions or modifications carried out to a property to the Land Registry with a detailed description and their value. The registration is made based on a public deed of declaration of new building works issued before a notary. The declaration is subject to stamp duty which amounts to 1.2% of the registered value.
The declaration of new building works is legally important in the case, for example, of selling a property, which can only be done if the building in question appears in the Land Registry. It is also important in practice when requesting a mortgage to purchase a property given that, as a general rule, Spanish banks will only offer credit if the building to be mortgaged has been correctly entered in the Land Registry.
In conclusion, the cadastral regularisation offers many property owners in Ibiza the fantastic opportunity to update the cadastral and registry details of their property. •