Cadastral Reference Value on Tourist Properties: When It Can Be Deemed Non-Existent for Spanish Transfer Tax (ITP) and Stamp Duty (AJD)

A ruling that changes the picture for tourist properties

Since its entry into force, the cadastral reference value has become the minimum taxable base for Spanish Transfer Tax (ITP) and Stamp Duty (AJD). Its automatic application has often forced buyers to pay tax on amounts well above the actual purchase price.

However, a recent administrative ruling issued by the Regional Office of the Spanish Cadastre opens a relevant route for investors and operators in the tourist sector: when a property, despite being formally listed in the Cadastre as residential, has been designed, built and operated as a tourist or hotel asset, the reference value can be declared non-existent for tax purposes.

> Practical note: this article is informational. Every tourist deal (aparthotel, complex, mixed-use building) needs an individual review before signing and before filing the ITP/AJD self-assessment.

The case: a tourist complex listed as residential

The case dealt with the acquisition of several property units within a complex devoted to tourist operation. The regional tax authority intended to assess Transfer Tax (ITP) using the individual cadastral values of each unit.

The taxpayer — properly advised — argued that these were not ordinary dwellings transferred separately, but elements tied to a single tourist business unit, with their own legal and economic constraints under the Spanish principle of "unidad de explotación" (single business unit).

The key factor was documentary: despite the residential cadastral classification, evidence proved that the building had been designed, projected and built as an asset for tourist operation, with its own licence, configuration and use regime.

What the Cadastre ruling actually says

After reviewing the submissions, the Regional Office concluded that the reference value could not be determined at the accrual date and that, accordingly, such value "does not exist" for tax purposes in that transaction.

The decision is based on the Second Provision of the Resolution of 23 October 2024 of the Directorate-General of the Cadastre, which excludes from the standard reference value the properties whose buildings are intended for uses such as:

• Industrial, offices and commercial.
• Sports, entertainment, leisure and hospitality.
• Healthcare, charity, cultural, religious or singular.