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The Supreme Court puts the brakes on the tax authorities: THEY CANNOT VALUE A PROPERTY WITHOUT SEEING IT!

The Supreme Court has ruled that the Treasury cannot calculate the value of a property without first viewing it. The ruling states that this method, which is based solely on comparisons with other properties in the area, violates the taxpayer's rights if essential elements such as the state of conservation, renovations carried out, and the property's actual layout are not taken into account.

The ruling expressly criticises the Tax Administration's usual practice of carrying out valuations without an on-site inspection, using only external data and market witnesses. According to the High Court, this procedure does not guarantee a fair or objective valuation of the property.

The specific case that gave rise to the ruling concerned a self-assessment of the Property Transfer Tax (ITP), in which the Treasury applied a higher valuation than that declared by the buyer despite not having visited the flat in person. The Supreme Court recalls that taxpayers have the right to have assessments adjusted to reflect the reality of their properties, and that generic coefficients based on cadastral values or market data alone are insufficient without verification of the property's specific conditions.

This ruling could have significant implications for future claims relating to property valuations in sales, inheritances, and donations.