What does the valuation check procedure consist of?

A valuation check is the authority available to the tax administration to verify whether the value attributed to a real estate asset complies with the valuation criteria set out in the General Tax Law. Following current legal reforms, the tax base for transfer taxes is generally calculated on the basis of the Cadastral Reference Value established by the General Directorate for Cadastre, unless the price agreed in the public purchase deed is higher.

However, the cadastral Reference Value or estimates carried out using other administrative methods do not always correspond to the physical, technical, or planning reality of the home. When the tax authority unilaterally determines that the market value is higher than that declared by the buyer, heir, or donee, it proceeds to issue a supplementary assessment claiming the difference in tax.

Common reasons why tax authority valuations show discrepancies

Mass valuation methods used by the Tax Administration to carry out a valuation check suffer from structural deficiencies because they fail to analyse each individual property in detail. Among the most frequent causes of technical discrepancy, the following stand out:

• Absence of an in-person site visit by the surveyor: It is common for the administration's technician to issue their report from an office, without ever entering the property or inspecting its actual state.
• Disregard for the state of repair: A property requiring comprehensive refurbishment or presenting severe defects cannot be equated with a renovated property or one in good condition. If administrative calculations fail to apply suitable depreciation, the resulting tax assessment becomes disproportionate.
• Architectural defects and accessibility barriers: The lack of a lift on upper floors, outdated layouts, or deficiencies in general building services significantly reduce the market value of the property on the open market.
• Errors in the cadastral record: Discrepancies in the actual measured floor area, incorrectly assigned building classifications, or incorrect age coefficients negatively distort the tax valuation.
• Planning encumbrances or easements: The presence of title restrictions on the land register or planning burdens directly limits the economic value of the property.

Key steps if you receive a supplementary assessment following a valuation check

Upon notification of a proposed tax assessment or an executive decision arising from a valuation check, prompt action is essential. Options depend on the procedural stage of the case file.

1. Review of technical motivation requirements

The first step is to analyse whether the administration's valuation satisfies the legal requirement of being properly substantiated. Supreme Court case law has repeatedly established that tax assessments based on generic reports, automated formulas, or without a physical inspection of the property violate taxpayer rights and can be annulled on formal and substantive grounds.

2. Lodging administrative appeals

Taxpayers have a period of one month, starting from the day following receipt of the notification, to choose one of the following avenues of appeal:

• Appeal for reversal (Recurso de reposición): Submitted to the same administrative body that issued the decision. This step is optional and precedes the economic-administrative route.
• Economic-Administrative Claim (Reclamación Económico-Administrativa): Addressed to the relevant Regional Economic-Administrative Tribunal (TEAR). This is an independent body separate from the regional Ministry of Finance, allowing the legality of both the procedure and the valuation to be reviewed.

3. Requesting a Contradictory Expert Valuation (TPC)

If the disagreement focuses exclusively on the quantitative valuation of the property, the taxpayer can initiate a Contradictory Expert Valuation. This formal procedure automatically suspends the payment obligation and collection proceedings for the assessment issued by the tax authority, without needing to provide bank guarantees or bonds while the expert case file is resolved.

Specific details for Officially Protected Housing (VPO) in the Comunidad de Madrid

In the territorial scope of the Comunidad de Madrid, properties subject to public protection schemes (VPO, VPP, VPPB, VPPL) are subject to specific regulations that directly condition any valuation check.

Protected homes in the Comunidad de Madrid have a Legal Maximum Sale Price set by law. The tax administration cannot demand tax on a taxable base exceeding this legal ceiling while the property remains under its protection scheme or is undergoing descalificación. If the regional tax authority issues a supplementary assessment seeking to value the dwelling at open market price or applying an inappropriate Reference Value, the assessment explicitly violates the legal framework of Madrid. In these cases, providing the Definitive Qualification Certificate (Cédula de Calificación Definitiva) and the corresponding maximum price certificate for the Comunidad de Madrid is sufficient to secure the invalidation of the proceedings.

The importance of the expert report and technical valuation

To counter the financial demands of the administration in a valuation check process, mere verbal disagreement or submitting estate agency listings is insufficient. The opposition must be grounded on a technical expert report prepared by qualified professionals.

A rigorous expert report analytically evaluates the usable floor area, finishes, age, building typology, comparable real transactions, and structural issues. At Sky Real Estate, we coordinate real estate market analysis with deep technical and legal expertise. Our specialised department holds recognition from the Sky Law European Legal Awards 2023-2025 in the field of real estate law, ensuring a solid legal framework for appeals. Furthermore, our technical metrics and valuations adhere to approved valuation methodologies, operating under the accreditation of regulated entities registered with ICI D-286 Banco de España.

Recommended strategy for pursuing an appeal with confidence

To ensure a robust defence upon receiving a tax valuation file, following this methodological sequence is recommended:

1. Verify the notification date: This allows the one-month deadline for submitting appeals to be calculated precisely, preventing the ruling from becoming final.
2. Provide documentary proof of the property's condition: Photographs showing the original condition upon acquisition, refurbishment quotes, building licence invoices, or homeowners' association minutes demonstrating levies for structural damage.
3. Commission an independent expert valuation: This highlights errors in the administrative assessment and serves as an essential foundation for both the Contradictory Expert Valuation and subsequent judicial appeals.
4. Coordinate technical arguments and legal grounds: Appealing on both lack of technical justification/inspection and erroneous valuation multiplies the effectiveness of the claim before the TEAR.

Handling a demand from the regional tax authority requires a precise technical response to avoid paying unjustified amounts. If you need to present solid evidence against a supplementary assessment or wish to review the tax status of your property, consult our specialists via our property valuation area.