Tax hike due to cadastral review in two towns in Alicante: owners could pay 70 times more

The Association of Real Estate Developers of the Province of Alicante (Provia) has warned about the tax hike that will result from the cadastral review in two towns in the province. It is estimated that owners could end up paying between 40 and 50 times more in tourist or rural areas, while increases in urban areas will be 50%.

Changes in cadastral values will drive up the amount to be paid for property tax, especially for homes whose value has multiplied over the years. In fact, an owner who pays 500 euros could end up having to shell out up to 10,000 euros annually in the future if this happens.

That is why Provia has issued a warning to homeowners in Santa Pola and Benitatxell, the two towns that will carry out this review of cadastral values , which will have "a significant impact on taxes". In addition, the deadline to file appeals is "extremely short", according to the developer association.

The association warns that the increase in cadastral values will not only affect property tax but also other important taxes, such as inheritance tax, transfer tax, and wealth tax.

In fact, in towns like Benitatxell , increases could be particularly dramatic. While urban areas of the town will experience increases of 50%, rural or tourist areas could see values multiply by 40, 50, or even 70 times. A situation that has caused "concern" among owners who would face excessive hikes.

Provia explains that although these increases occur gradually, the final impact will be considerable. "We are not talking about increases of 20% or 30%, but multiplications that can reach exorbitant figures," say sources from the developer association, who assure that some properties will go from paying moderate amounts to tens of thousands of euros in annual taxes. The gradual application, which would spread the increase over 10 years, will slightly alleviate the initial burden, but owners should prepare for increasing payments each year.

The association urges owners to act "quickly" to review new cadastral values as the time to appeal is limited and once expired, it will no longer be possible to correct errors or inconsistencies.

That is why Provia calls on owners, especially those with second homes, to consult a lawyer to review new cadastral values and file appeals if necessary. PROVIA's concern is not only focused on the immediate economic impact but also on long-term consequences for Costa Blanca's image as a residential and tourist destination.

"If these excesses are not corrected, there is a risk of generating a negative perception among foreign residents and investors, which could harm the development of these towns," conclude sources from the association.