Reference Value and Municipal Plusvalía: 2026 Guide

Updated 22 September 2026 · Tax and Property Law · Torrevieja, Elche and Moraira

Direct answer: they are different concepts used for different taxes

Spain’s Cadastral Reference Value is, by law, the minimum taxable value of real estate for Transfer Tax (ITP) and Inheritance and Gift Tax, unless the declared value, price or consideration is higher. It is not automatically the taxable base for Municipal Plusvalía (IIVTNU).

Binding ruling DGT V0792-26 of 9 April 2026 accepts that a town council may refer to the reference value within a formal valuation check. It does not allow the council simply to copy that figure into an assessment without a procedure, reasons and an opportunity to challenge it.

> Key point: for ITP and inheritance tax, the reference value operates directly because legislation says so. For municipal plusvalía, according to the DGT, it may only intervene as part of a formal review of the declared value. These are different legal roles.

1. What is the reference value and which taxes use it?

The General Directorate of Cadastre calculates the reference value annually from notarised property transactions, using average-value modules and a reduction factor. It is not the same as the cadastral value shown on the IBI council-tax bill.

| Concept | Main function | Typical taxes |
| --- | --- | --- |
| Cadastral value | Individual administrative value of the property | IBI and the objective component of municipal plusvalía |
| Reference value | Annual objective market benchmark | ITP, AJD and Inheritance and Gift Tax |
| Declared price or value | Documented amount of the transaction | Relevant to the real-gain calculation for plusvalía |

For purchases subject to ITP, see our analysis of [run-down properties and the reference value](https://bufetepadillatorrevieja.com/en/blog/inmueble-deteriorado-valor-referencia-impugnacion-itp-2026).

2. What changed with Constitutional Court judgment 13/2026?

Constitutional Court judgment 13/2026 of 12 February upheld the reference-value system for ITP and Inheritance and Gift Tax. It accepted an objective measurement of potential economic capacity because the system uses average values close to the market and allows the taxpayer to seek an individual valuation by producing evidence about the actual property.

The judgment strengthens the reference value where legislation expressly introduced it. It does not by itself extend it to municipal plusvalía. The Local Finance Act retains its own rules for deciding whether an increase exists and for calculating the taxable base.