Date: 09-07-2025

The Spanish Supreme Court (TS) has issued a strong rebuke to the Tax Agency for routinely valuing taxpayers’ properties without inspecting their interiors to determine the taxable base. The high court, which has already ruled several times on the requirement for tax assessors to view properties internally, now sets a clear precedent in response to Hacienda’s non-compliance.

In a judgment dated 24 June, the Supreme Court concluded that a visit by the assessor to the exterior of the property, even if supported by photographs, is not enough to justify skipping an interior inspection. The assessor must explain and justify the reasons why entering the property was impossible or unnecessary.

It’s worth remembering that, since January 2022, buyers or heirs of a property are taxed based on the reference value set by the General Directorate of the Land Registry (Catastro). However, if a property does not have a reference value, the market value or agreed price is used instead. Likewise, when someone contributes a property, commercial unit, or land to a company, they must pay personal income tax (IRPF) on the capital gain or loss, calculated as the difference between the purchase price and the market value at the time of transfer.

In these cases, if the Tax Agency disagrees with the declared tax on property transfers, inheritance or donations, or personal income, it may opt for an expert valuation to assess the property. When the value is based on the reference value and the taxpayer challenges it, the Tax Office requests a report from the Land Registry to confirm or adjust the figure—without the need for an in-person visit.

The court emphasises that when the tax authorities rely on an expert to value a property, the assessment must be specific to the property and include an interior inspection to measure, assess condition, and examine materials. It also states that judges must ensure the methodology used by the administration’s expert complies with professional standards and best practices. If the expert cannot access the property, they must give a clear and justified explanation in their report.

Finally, the court notes that the fact that taxpayers can provide an independent valuation does not allow the administration to lower the standards required for its own expert evidence.

In this case, the Supreme Court highlights that the assessor’s report includes phrases such as “as can be seen from the outside”, which it considers “clearly insufficient under the standards established by our case law”.

“The expert does not deny the need for an internal inspection of the property, yet still limits the assessment to exterior photographs, assuming that the internal condition matches the exterior appearance,” it states. Moreover, the report does not suggest that access to the property was even requested.

“As we have said, the convenience of the Administration in managing taxes on a large scale cannot justify neglecting good professional practice to the detriment of the taxpayer’s legal safeguards,” the ruling concludes.

Source: El Economista

Writer: Eva Díaz