Three figures for one property
Anyone looking at a home on the Costa del Sol soon comes across several figures: the asking price, a valuation from the bank and a cadastral value on the tax bill. These are not contradictions. Each figure measures something different and serves a different purpose.
Starting from the wrong value can mean paying too much, misjudging your financing or facing a later adjustment from the Spanish tax authorities. Below we explain what each value means and when it is relevant to you.
The tasación homologada: the bank's valuation
The tasación homologada is the official valuation required by Spanish mortgage regulations (Orden ECO/805/2003). Only a valuation company registered with the Banco de España may issue it. Its purpose is narrow: the bank needs to know how much it can lend against the property as security.
The method is prescribed, the report is valid for six months and the cost is normally borne by the person applying for the mortgage. You need this valuation when you take out a mortgage or take over an existing one (subrogación). The figure does not have to match what buyers are prepared to pay; it answers a different question. More on borrowing as a non-resident can be found on our financing page.
Market value: what the property would sell for today
Market value is an estimate of the price a property would achieve now under normal conditions. A sound valuation uses the comparative method: what has actually sold in the same area, and how does the property compare in terms of floor level, orientation, condition, views and the service charges of the owners' association (comunidad). A generic algorithm does not draw these distinctions and sees little difference between a first-floor flat facing the inner courtyard and a penthouse with sea views.
For you as a buyer, this is the value against which to judge an asking price and support an offer. For an idea of price levels by municipality, see also what 300,000 euros buys and price growth in 2026.
The valor catastral: the value used for tax
The valor catastral is an administrative value set by the Spanish land registry office (Catastro) for calculating taxes. Its best-known use is the IBI, the annual municipal property tax. For owners who do not live in Spain, the cadastral value is also the basis for the deemed income tax charged on periods in which the property is not let.
This value is usually well below the market price and is updated on fiscal rather than commercial criteria. In addition, the Catastro publishes a separate reference value (valor de referencia). It acts as a floor for the taxable base of transfer tax on resale homes (ITP) and of inheritance tax. If your purchase price is lower, the tax is generally still calculated on the reference value. See also our costs page.
Which value do you need, and when?
| Situation | Relevant value | Notes |
|---|---|---|
| Assessing an asking price or making an offer | Market value | Based on actual sales nearby |
| Taking out or taking over a mortgage | Tasación homologada | Mandatory, issued by a firm registered with the Banco de España |
| Annual taxes | Valor catastral | Basis for IBI and the deemed income charge for non-residents |
| Inheritance | Market value at the date of death | At least the reference value; an independent valuation avoids disputes between heirs |
| Divorce or division of assets | Independent valuation | Objective basis for division or compensation |
The most common mistake
The error we see most often is basing a price on the cadastral value or from an old mortgage valuation. The cadastral value is almost always too low to say anything about the market. A bank valuation tells you how much can be borrowed, not what a buyer will pay today.
Care is also needed with an inheritance. Declaring only the cadastral value without checking which value the tax authorities require can lead to a supplementary assessment later. More on this in inheritance tax in Andalusia. If in doubt, seek advice from an independent tax adviser.
How CostaVista can assist
For every property you are considering, CostaVista sets the relevant figures side by side: a reasoned estimate of market value based on comparable sales, the fiscal values that determine your purchase costs and annual charges and, if you are financing, the timing of the bank's valuation. Please feel free to contact us.
General information, as of October 2026. This is not legal, tax or financial advice; for your own situation, consult an independent specialist.