In a home sale transaction, we handle various concepts related to its value. For example, the market value, which would be the final price that is negotiated between buyer and seller. Or the cadastral value of the home, which would be the administrative value objectively set for each property, based on a series of valuation criteria defined by each City Council and which is used to establish municipal taxes.
This cadastral value may not exceed the market value of the home. Today we will analyse the tax value of the home, established by the Treasury and which is used to determine the price or value of a home for the payment of sales, gift or inheritance taxes.
What is the tax value of a home?
The tax value of the home is different from its cadastral value. The Tax Agency has its own way of calculating the value of things, from a second-hand car to an inherited painting. And it is the same with housing.
The tax value refers to the value established by the Treasury to determine the price or value of a home for the payment of taxes in the event of selling, donating or inheriting the home. The cadastral value is an administrative value established by the Municipal Cadastre, with its own criteria for each municipality.
This tax value was defined to establish a minimum value that the Tax Agency establishes for housing in order to calculate its taxes. For example, if the sale of a house is made for 150,000 euros and the tax value set by the Treasury is 200,000, the taxes are adjusted to this last value.
How is the tax value determined?
The tax value of a home will depend primarily on each Autonomous Community. In the case of Altea, in the Valencian Community, it is calculated based on the property’s cadastral value and applying a multiplier coefficient depending on the type of property and its age. You have this link available to calculate the tax value.
What is the tax value of the house worth?
This value of the home is used to pay some taxes:
Tax on Patrimonial Transmissions (ITP):
This tax is levied on the transfer of a second-hand home. It must be paid by the buying party and the amount is between 4% and 10% of the tax (minimum) or sale value, depending on the deductions that are applied.
Income Tax for Individuals (IRFP):
This tax is levied on the capital gain obtained from the sale. It must be paid by the selling party and it is calculated progressively, through sections from lower to higher income.
Inheritance and Gift Tax:
This tax must be paid by the person receiving an inheritance or donation in life, instead of the ITP. As there is no price for the transfer of the home, since it is a donation or succession, it is calculated based on the tax value.
It is a progressive tax, which means that the greater the amount of the inheritance or donation, the higher the percentage to be paid.
If you have questions about this or any other tax related to your home, at Ampervillas we will solve any questions you have. Consult us without obligation.
Christmas activities in Altea
This year so different due to the situation of COVID-19, Christmas activities in Altea, how could it be otherwise, will be greatly reduced. The measures decreed by the Generalist and the Government to curb the number of infections has caused most of the usual cultural, leisure and sports programming around these Christmas dates to be suspended or postponed.
Christmas decoration as COVID-19 security measures, the entry and exit of the Valencian Community is limited, only authorizing properly justified trips. Also, the movement of people at night until 11:00 p.m. except for the nights of December 24 to 25 and January 31 to 1, in which the circulation will be extended until 00:00.
Meetings, including family ones, will be a maximum of 6 people, restricted to two groups of coexistence, without any exception on Christmas days. Finally, the capacity in shops, leisure and restaurant areas and sports facilities will be limited.
Any establishment open to the public must inform, by means of capacity posters, the maximum number of people it can accommodate during its activity and must control that it is complied with.
However, we can still enjoy different Christmas events by following the appropriate safety and hygiene measures.
Families can enjoy Plaça de Nadal which will be located in the Plaza del Ayuntamiento, with the traditional Nativity Scene, the Christmas tree, lights and various activities and attractions with popular prices. In the aforementioned Plaza del Ayuntamiento, from December 22 to 24, the little ones will be able to deliver their letters to Santa Claus at his “post office”.
For the safety of the attendees, there will be hydroalcoholic gel and entry and exit circuits will be enabled. In Altea la Vella, in the Plaza de Caixaltea, activities and many surprises will also be offered for the little ones.
During these Christmas days, Palau Altea has some plays and shows on the bill. On Saturday December 26 we have “The Colonel has no one to write to him”, an adaptation of the novel by Gabriel Garcia Marquez and interpreted by Imanol Arias. And on Sunday December 27 for all audiences, “Cinderella”, the musical.
A musical full of music, dance and beauty that will make you laugh, enjoy and dream. To start the year, on Saturday January 2 we can enjoy the “Great New Year’s Concert” by La Orquestra Simfònica Belles Arts.
Santa Claus post office
Waiting to confirm the acts of the Magi. It is expected that they may be collecting letters to the little ones from December 27 to 30 and January 2 and 3, from 6:00 p.m. to 9:00 p.m., and on January 4 from 10:00 a.m. to 2:00 p.m., at the festive headquarters of the Comissió del Santíssim Crist del Sagrari 2020. On Friday the 3rd at 5:00 p.m.
The traditional “Burreta” of the Royal Mailman will take place, with the tour through the usual streets to the Plaza del Convento where the Commission will offer a chocolate. On Saturday 4th will be the “Burreta” in Altea la Vella. The Christmas activities end on January 5 with the spectacular Three Kings Parade in Altea. This year, as a novelty, the departure will be from Avenida Juan Alvado and will continue along the usual route to the Plaza del Ayuntamiento. On Monday, January 6 at 11:00 a.m. the Three Wise Men will visit Altea la Vella.
Appealing to everyone’s responsibility and prudence so that the impact of COVID-19 is as minor as possible, from Ampervillas we sincerely wish you a happy Christmas season.
High rental demand in Altea la Vella
The past year 2020 has been a year of transformation in the rental market. The average rental price has increased slightly despite the pandemic, especially in high-demand areas such as large cities or beach locations.
But undoubtedly the most significant change has been the increase in the supply of the long-term residential market to the detriment of tourist homes, which have seen how the stop in travel has led to much of this housing supply being transferred to the market of the traditional rental.
The rental market is therefore presented as a safe, recoverable and revalue able long-term investment. According to data from the Bank of Spain, the profitability of housing was around 7% last year, much more than any traditional financial product. In fact, 25% of home buyers plan to rent it, both for short and long-term stays.
And what is more, many owners of second homes in beach areas such as Altea, where due to travel restrictions they cannot make the holiday use they used to do, have decided to rent their home.
At Ampervillas we have clients interested in renting in Altea la Vella. An area in high demand for both renting and buying. If you have a home in urbanizations such as Sierra de Altea Golf, Santa Clara, Jardines de Alhama, Altea Hills, Paradiso, etc.
If you are interested in renting it to obtain a good return, do not hesitate to contact us. Our more than 35 years of experience on the Costa Blanca are our best guarantee. We will inform you without obligation.
Many owners of second homes in beach areas such as Altea have decided to rent their home. Among the advantages for the owner when resorting to a professional to rent their home, we can highlight:
Careful selection of the tenant:
The main fear that a landlord has when he puts his house in rent is that the tenant will not pay. Our real estate agents make a careful selection of the tenant to identify those who are solvent and reliable. We rent your house as if it were ours, taking care of all the details.
Advice on signing the contract:
The rental law regulates the conditions and clauses that a rental contract may include. New measures have recently been added to try to help the rental market, such as COVID-19 clauses to protect both tenants and owners against new waves of the virus, or the regulation of the rental price.
In blue world we have lawyers specialized in the real estate market who will advise you conveniently and help you with all the paperwork so that you do not have problems.
Day-to-day management of the rental:
Throughout the life of the contract, numerous setbacks may appear. From a broken window, an appliance that doesn’t work, problems with services, etc. One of the main advantages of renting a home through a trusted real estate agency is the security in solving these situations without worries.
At Ampervillas we take care of everything related to your home, from its maintenance (garden, swimming pool, small reforms, repairs) to any type of paperwork (service registration / cancellation, management with the City Council, taxes).