Real Estate Glossary
The terms you'll hear most during the buying or selling process, explained in plain language.
AJD (Stamp Duty on Documented Legal Acts)
A tax paid when certain notarial documents are executed, such as the purchase of a new-build home, alongside VAT.
Arras (deposit contract)
A private reservation contract, usually for 10% of the price, that commits buyer and seller to complete the sale under agreed terms and within a set deadline.
Cédula de habitabilidad (habitability certificate)
A document certifying that a home meets the minimum conditions to be lived in. It is mandatory in some regions in order to sell or rent.
Energy performance certificate
A mandatory document rating a home's energy efficiency from A (most efficient) to G (least efficient).
Comunidad de propietarios (owners' association)
The owners of a building or development, who jointly manage the common areas and shared costs.
Escritura pública (title deed)
The notarial document that legally formalises the sale of a property, which is then registered at the Land Registry.
Gestoría
A firm or professional that handles the administrative and tax paperwork of the sale on your behalf.
Hipoteca (mortgage)
A bank loan to buy a home, secured against the property itself.
IBI (Property Tax)
An annual municipal tax on property ownership, calculated on the property's cadastral value.
ITP (Property Transfer Tax)
The tax the buyer pays when purchasing a resale home. The rate varies by region.
VAT on new-build homes
Value Added Tax applied to the purchase of a new-build home (instead of ITP), generally at 10%.
NIE (Foreigner Identity Number)
A mandatory tax identification number for any foreigner carrying out financial transactions in Spain, including buying a home.
Nota simple (Land Registry extract)
A Land Registry document confirming who legally owns a property and whether there are any charges, mortgages or liens on it.
Notario (notary)
A public official who legally certifies the sale through the title deed, verifying the identity of the parties and the legality of the transaction.
Plusvalía municipal
A municipal tax on the increase in the land's value from when the seller acquired it until they sell it. It is usually paid by the seller.
Referencia catastral (cadastral reference)
A unique code identifying a property in the Cadastre, the administrative register describing all real estate in Spain.
Registro de la Propiedad (Land Registry)
The public body where properties and their owners are registered, giving public notice and legal certainty to the sale.
Tasación (official appraisal)
An official valuation of a home carried out by an accredited professional, usually required by banks to grant a mortgage.