The Buying Process
Calculating Value
Municipal
The municipal authority assesses property values. They calculate tax rates based on three parameters.
Voluntary declaration is done where the municipal government sends out a voluntary declaration form for the owner of the property to complete and send back to the municipal office. Many municipalities have automated databases for property prices in the region and they encourage the owners to adhere to the standard set by the market assessments done by collecting all voluntary declarations.
When property owners choose not to file the voluntary declaration, the municipal government usually sends out a professional real estate appraiser to survey and price the property.
The municipal government will also use the most recent transaction as a measuring stick for current property values. When a sale is made or a mortgage is placed on a property, the tax basis and the estimated value will be adjusted upwards to match the transfer deed or the mortgage. Any improvements or market trends over time can be used to further bump the value to match the current true value of a home, condo or parcel of land.
Everyone is allowed to visit the Registro Nacional (National Property Registry) to go through all registered tile deeds in order to obtain: accurate ownership information, property boundaries, liens and encumbrances information. This is a free service provided by the municipal authorities.
