Reference
Every term you will encounter when buying property in Spain, explained in plain English. From NIE numbers to notarios, ITP to IBI — no jargon, just clarity.
Escritura publica
The public deed signed before a notary that legally transfers property ownership. The escritura is then registered at the Land Registry (Registro de la Propiedad) to complete the purchase. Both buyer and seller (or their legal representatives) must be present at the signing.
Notario
A government-appointed public official who witnesses and authenticates the property sale. The notary verifies identities, checks the property is free from debts, reads the deed aloud, and ensures both parties understand the terms. Notary fees are set by the government and typically cost 0.1-0.5% of the purchase price.
Contrato de arras
A private purchase contract where the buyer pays a deposit (typically 10% of the price) to reserve the property. If the buyer pulls out, they lose the deposit. If the seller pulls out, they must return double the deposit. This contract sets out the agreed price, completion date, and conditions of sale.
Nota simple informativa
An extract from the Land Registry showing the property's legal status: current owner, description, size, any charges or debts (mortgages, embargos), and registered boundaries. Your lawyer should always obtain a nota simple before you commit to buying. It costs around £9 (€10) and can be requested online.
Registro de la Propiedad
Spain's property registry where all property ownership and charges are recorded. After signing the escritura, your lawyer registers the purchase here, which gives you full legal protection as the owner. Registration fees are typically 0.1-0.3% of the purchase price.
Poder notarial
A legal document authorising someone (usually your Spanish lawyer) to act on your behalf. Particularly useful if you cannot be present for the notary signing. Can be arranged at a Spanish consulate in the UK or before a Spanish notary. A specific (limited) power of attorney is recommended over a general one.
Abogado
A qualified Spanish lawyer. For property purchases, you need an independent lawyer (not one recommended by the estate agent or developer) who specialises in conveyancing and speaks English. They handle due diligence, contract review, and guide you through the purchase. Fees are typically 1% of the purchase price plus 21% IVA.
Impuesto de Transmisiones Patrimoniales
The tax paid when buying a resale property in Spain. In Andalucia, the rate is 7% of the purchase price (reduced from a sliding scale in 2021). This is the largest single cost when buying a resale property and must be paid within 30 days of signing the escritura.
Impuesto sobre el Valor Anadido
Value Added Tax of 10% applied to new-build property purchases (21% for commercial property). Paid instead of ITP when buying directly from a developer. Note that AJD (stamp duty) of 1.2% is also payable on new builds, so total tax on a new build is 11.2% compared to 7% ITP on resales.
Actos Juridicos Documentados
Stamp duty of 1.2% in Andalucia, payable on new-build purchases (alongside IVA) and when taking out a Spanish mortgage. Since 2019, the bank pays AJD on the mortgage deed, but the buyer still pays on the property purchase deed for new builds.
Impuesto sobre Bienes Inmuebles
The annual property tax equivalent to UK council tax, based on the cadastral value (valor catastral) of the property. Rates vary by municipality but typically range from £350-1,700 (€400-2,000) per year. Paid to the local town hall, usually with a direct debit discount available.
Plusvalia municipal
A municipal tax on the increase in land value, paid by the seller when a property changes hands. Calculated based on the cadastral land value and years of ownership. This is separate from national capital gains tax (IRPF) and is paid to the local town hall.
Tasa de basura
The annual refuse and waste collection charge levied by the local town hall. Typically £86-260 (€100-300) per year depending on the municipality. Usually billed alongside or separately from IBI.
Catastro
Spain's cadastral registry that records the physical characteristics of every property: location, boundaries, size, and assigned value (valor catastral). The cadastral value forms the basis for IBI and other property taxes. It is separate from the Registro de la Propiedad, which records legal ownership.
Referencia catastral
A unique 20-digit code identifying every property in Spain's cadastral system. You can look up any property's details (size, boundaries, cadastral value) using this reference on the Sede Electronica del Catastro website. Essential for verifying property details before purchase.
Comunidad de propietarios
The equivalent of a UK management company or residents' association. All apartment and urbanisation owners are automatically members and must pay monthly or quarterly community fees that cover shared expenses: pool maintenance, gardens, lifts, building insurance, security, and communal areas. Fees range from £43-430 (€50-500) per month.
Plan General de Ordenacion Urbanistica
The municipal master plan that governs all land use and building permissions in a town. The PGOU determines what can be built where, building heights, density, and protected areas. Important to check before buying land or properties with development potential, as the PGOU can significantly affect future value.
Licencia de primera ocupacion
A licence issued by the town hall confirming a new building meets all planning and building regulations and is habitable. Essential for new builds — without it, you cannot connect utilities or register the property for habitation. Older properties may not have one, which can complicate resale.
Vivienda con Fines Turisticos
The official licence required to legally operate a short-term holiday rental in Andalucia. Properties must meet specific requirements (air conditioning, first aid kit, tourist information, etc.). The Junta de Andalucia has been tightening regulations, and some areas have restrictions on new licences. Check VFT availability before buying if rental income is part of your plan.
Urbanizacion
A planned residential development, typically gated or semi-gated, with shared facilities like pools, gardens, and security. Common throughout the Costa del Sol, urbanizaciones range from modest apartment complexes to luxury villa communities. They are managed by a comunidad de propietarios.
Certificado de eficiencia energetica
An energy performance certificate (EPC) that rates a property from A (most efficient) to G (least efficient). Required by law for all property sales and rentals. The seller must provide this before marketing the property. Most properties on the Costa del Sol rate between D and G, with newer builds generally performing better.
Seguro decenal
A mandatory 10-year structural defects insurance policy that developers must take out on new-build properties. It covers major structural defects in the building. When buying a new build, confirm this insurance is in place — it protects you against fundamental construction problems for the first decade.
Hipoteca
A Spanish mortgage. Non-EU buyers (including UK citizens post-Brexit) can typically borrow up to 60-70% of the property value, compared to 80% for EU residents. Interest rates are typically 2.5-4.5%. Both variable rate (linked to Euribor) and fixed rate options are available. The mortgage term can be up to 25 years for non-residents.
Tasacion
An official property valuation required by the bank before granting a mortgage. Must be carried out by an approved valuation company (sociedad de tasacion). The cost is borne by the buyer, typically £260-520 (€300-600). The bank will lend based on the lower of the purchase price or the tasacion value.
Cuenta de no residente
A Spanish bank account designated for non-residents. Required for the property purchase process (paying deposits, taxes, utilities). Most Spanish banks offer these, though opening one has become more bureaucratic since Brexit. You will need your passport, NIE number, and proof of UK address.
Numero de Identidad de Extranjero
The foreigners' identification number required for virtually all financial transactions in Spain: buying property, opening a bank account, paying taxes, connecting utilities, and more. Apply at a Spanish consulate in the UK or at a police station in Spain. The number is permanent; the certificate expires after 3 months but can be renewed.
Tarjeta de Identidad de Extranjero
A physical identity card issued to foreign residents in Spain, containing your NIE number, photo, and biometric data. Required once you obtain residency. Think of it as the Spanish equivalent of a UK driving licence as proof of identity. Must be renewed periodically.
Empadronamiento
Registration on the municipal census (padron) at your local town hall. Required for all residents and gives you access to local public services including healthcare. You need your passport/TIE, proof of address (rental contract or escritura), and the registration form. The certificate (certificado de empadronamiento) is often requested for various administrative processes.
Visado no lucrativo
The most common residency visa for UK retirees moving to Spain. Requires proof of sufficient funds (approximately £24,000/€28,000 per year for the main applicant), private health insurance, a clean criminal record, and no intention to work in Spain. Initially granted for one year, then renewable for two-year periods.
Gestor administrativo
A licensed professional who handles bureaucratic and administrative paperwork on your behalf. Gestores navigate Spanish bureaucracy efficiently — from tax filings and NIE applications to vehicle registrations and business licences. Not the same as an abogado (lawyer), but invaluable for day-to-day administrative tasks. Fees are typically £43-173 (€50-200) per task.
Now that you know the terminology, explore our buying guides or browse properties across the Costa del Sol.
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