Glossary of Spanish property terms

Abogado (Lawyer)

An independent lawyer who acts for you in the purchase and carries out the legal checks.

Adosado (Semi-detached or terraced house)

A house joined to one or more others, often on a complex.

Amortización (Repayment)

Repaying a mortgage, capital and interest, in instalments.

Arquitecto (Architect)

Also signs off new buildings and can issue an energy certificate.

Arras (Deposit contract)

A deposit paid on signing the private contract. Under arras penitenciales a buyer who withdraws loses it and a seller who withdraws returns double.

Aval bancario (Bank guarantee)

The guarantee that protects money paid to a developer before a new property is finished.

Ayuntamiento (Town hall)

The local council, which sets IBI and plusvalía and handles planning.

Basura (Rubbish collection)

The town hall charge for refuse collection.

Boletín eléctrico (Electrical certificate)

The installer's certificate for the electrical installation, needed to connect a supply.

Cancelación registral (Registry discharge)

Removing a paid-off mortgage from the Land Registry, which has notary and registry costs.

Carga (Registered charge)

A mortgage or other charge recorded against a property at the Land Registry.

Catastro (Cadastre)

The official property register used for tax, which records each property's cadastral value and reference.

Cédula de habitabilidad (Habitation certificate)

Confirms that a home meets the minimum standards to be lived in. The Canary Islands has its own rules on when one is needed.

Certificado de eficiencia energética (CEE) (Energy performance certificate)

Rates a property from A to G. Required before a sale completes at the notary.

Certificado de final de obra (Completion certificate)

Issued by the architect when building work is finished.

Comunidad de propietarios (Community of owners)

The owners of a complex acting together, with a president, a secretary and yearly accounts.

Contrato de compraventa (Purchase contract)

The private contract between buyer and seller, signed before completion at the notary.

Cuota de comunidad (Community fee)

What each owner pays towards the running of the complex.

Diferencial (Margin)

The fixed percentage added to the reference rate on a variable-rate mortgage.

Embargo (Seizure order)

A charge registered against a property for an unpaid debt.

Escritura (Title deed)

The public deed of sale, signed before a notary and then registered.

Euríbor (Euribor)

The reference interest rate used for most variable-rate mortgages in Spain.

Finca (Rural property)

In everyday use a country house with land; in legal documents, any registered property.

Gestor / gestoría (Administrative agent)

Handles paperwork such as tax returns and applications for a fee.

Hacienda / Agencia Tributaria (Tax office)

The Spanish tax authority.

Hipoteca (Mortgage)

A loan secured on the property.

IBI (Impuesto sobre Bienes Inmuebles) (Council tax)

The yearly property tax paid to the town hall, based on the cadastral value.

IGIC (Canary Islands sales tax)

The Canary Islands equivalent of VAT, charged at 7% on new-build homes.

ITP (Impuesto sobre Transmisiones Patrimoniales) (Transfer tax)

Paid by the buyer on a resale property; 6.5% in the Canary Islands.

AJD (Actos Jurídicos Documentados) (Stamp duty)

A tax on notarial documents, charged on a new-build purchase and on mortgage deeds.

Licencia de obra (Building licence)

Permission from the town hall to build or alter.

Modelo 210 (Non-residents tax return)

The form non-residents use to declare income from Spanish property.

NIE (Número de Identidad de Extranjero) (Foreigner's tax number)

Needed to buy property in Spain. Issued in Tenerife by the Policía Nacional.

Notario (Notary)

A public official who witnesses the signing of the deeds and checks the transaction is in order.

Nota simple (Land Registry extract)

Shows who owns a property and any mortgages or charges on it.

Obra nueva (New build)

A newly built property, sold by the developer.

Plusvalía municipal (Local land-value tax)

A town hall tax on the increase in the land value, borne by the seller; when the seller is non-resident the buyer pays it and keeps the amount back from the price.

Poder notarial (Power of attorney)

Lets someone, usually your lawyer, sign for you.

Referencia catastral (Cadastral reference)

The unique code for a property in the Catastro.

Registro de la Propiedad (Land Registry)

Where ownership and charges are recorded.

Retención del 3% (3% withholding)

When the seller is non-resident, the buyer withholds 3% of the price. It is a payment on account of the seller's capital gains tax on the sale; any excess can be claimed back, and any shortfall is paid by the seller.

Tasación (Valuation)

An official valuation, required by a bank for a mortgage.

Valor catastral (Cadastral value)

The value the Catastro assigns to a property, usually well below market value.

Valor de referencia (Reference value)

The Catastro's value used since 2022 as the minimum base for transfer tax.

Vivienda vacacional (Holiday let)

A home let to tourists. In the Canary Islands it is regulated by Ley 6/2025 and allowed only where local planning permits it.

For how these fit together, read our buyers guide.

General information. It is not legal advice.