Challenges of obtaining reliable property valuation information in Spain
Whether because of its past and the general attitude of trying to evade taxes (and family ‘interest’), public disclosure of financial information is not the norm.
Sale prices are generally not publicly available, and there is no register of rentals. Even if available, doubts arise due to payments made ‘under the table’, allegedly. Reliable information sources pose a significant challenge for valuers. Survey Spain’s registered valuers conduct fresh market searches each time to assess market offerings. We receive reliable feedback from buyers, trusted agents, and lawyers on asked and agreed prices. Based on this feedback, we have created a quarterly index of differences since 2014, reflecting supply and demand strength and weakness. Additionally, further differences arise when tasadores apply Bank of Spain mortgage valuation regulations. Survey Spain provide the value that we consider the seller should pay, not making any deductions for buyer’s costs, taxes, etc.. You might find this short article of interest. Current Market Value v Mortgage valuation
The Complexity of Rental Valuations:
Rental is more difficult, with so many leases being informal and not registered, probably principally to avoid tax. To counter this, the taxman is applying a notional rental to all company owned property on the idea that the company has a duty to its shareholders to maximise income, and that can include an assumption on rental of a company owned car in the garage. So, reliable rental income is in even shorter supply, along with reliable support. A public record of actual rents and sale prices would be extremely useful, along the lines of Manhattan where I’ve worked, or even to a limited extent in Gibraltar, but I’m not holding my breath!
Valuations depend upon the skill and experience of conscientious valuers/appraisers, with the Survey Spain Network having representatives living and working on all the coasts and inland of Spain, plus the island groups of the Balearics (Mallorca, etc) and the Canaries (Tenerife, etc).