Spanish Supreme Court Decision 516/2024, dated March 21, issued by the Third Chamber, has established a legal precedent regarding several important issues:

Who is considered the taxpayer for the Property Tax (IBI) in cases where there is a discrepancy between ownership details in the Cadastre and those recorded in the Land Registry.

Whether, for the purpose of determining the taxpayer, the registered ownership in the Land Registry takes precedence over cadastral information, and if so, whether the date of incorporation of the property into the Cadastre should be taken into account.

Whether proving this discrepancy automatically nullifies the tax bill issued to the cadastral titleholder, or whether a formal modification of the cadastral records must be requested before issuing a final bill to the correct taxpayer.

The Supreme Court determined the following:

1. The taxpayer for the Property Tax (IBI) is the individual who holds the right that constitutes the taxable event for the tax (the owner of the property).

2. When there is a discrepancy between the cadastral titleholder and the holder of the corresponding right as registered in the Land Registry, and when the Land Registry contains a cadastral reference, priority is given to the ownership as indicated in the Land Registry. Therefore, the taxpayer for the IBI is the registered titleholder in the Land Registry, unless the document that incorporates the property into the Cadastre is dated after the title in the Land Registry: in that case, the taxpayer would be the cadastral titleholder.

3. If there is a delegation agreement between the Cadastre and the corresponding local council or authority, establishing this discrepancy will nullify the IBI assessment issued to a cadastral titleholder who is not the actual taxpayer, provided the local authority has made the necessary adjustments to identify the correct taxpayer.

4. In cases where no delegation agreement exists, the assessment issued by the local council or entity is provisional. It will be nullified if the General Directorate of the Cadastre subsequently decides to amend the cadastral titleholder. If the General Directorate confirms the cadastral titleholder, the council or entity will proceed to issue a final assessment as necessary.

This ruling provides crucial guidance for cases where ownership records do not align across public records and clarifies the procedures for both taxpayers and authorities to follow in these circumstances.