Differences Between a Property's Cadastral Appraisal and Commercial Appraisal: How Are They Calculated?
Real Estate attorney Esteban García Jimeno was interviewed by El Espectador about the differences between a property's cadastral appraisal and commercial appraisal in Colombia. During the interview, he explained that the two concepts serve different purposes: While the cadastral appraisal is primarily tax-related and serves as a reference for tax obligations, the commercial appraisal seeks to establish the property's real market value based on its particular characteristics and applicable technical criteria. Mr. García also warned about cases in which the cadastral appraisal exceeds the property's commercial value, a situation that may give rise to review by the competent authority.
"It is the valuation made by the competent cadastral authority that has effects mainly for tax purposes, namely, for determining the taxable base of the property tax, as well as, in some cases, determining the tax basis for other taxes such as capital gains tax," he said.