Glossary: Property & Legal Terms in Spain
Spanish property purchases come with a few terms you’ll see again and again — in emails from lawyers, on official documents, and in conversations during viewings. This glossary translates the most common words into plain English, so you can follow the process confidently from arras to completion (and beyond).
Legal & Contract Terms
These are the words you’ll typically see in reservation paperwork, contracts, notary documents and Land Registry extracts. If you’re ever unsure, your lawyer can confirm how each term applies to the specific property you’re buying.
- Arras / Contrato de Arras: A reservation/deposit contract that sets out the intention to buy and the penalty if either party withdraws (your lawyer will confirm the exact arras type being used).
- Escritura Pública: The official public deed signed before a notary that formalises the transfer of ownership.
- Notario (Notary): A public official who certifies the signing of deeds and ensures the transaction follows the legal requirements for registration.
- Registro de la Propiedad: The Land Registry where ownership, charges and legal encumbrances are recorded.
- Poder Notarial (Power of Attorney): Authorisation allowing your lawyer to sign and act on your behalf in Spain (useful if you’re abroad during key stages).
- Compraventa: The purchase/sale deed signed at the notary — effectively the final completion step.
- Plusvalía Municipal: A municipal tax linked to the increase in land value; usually paid by the seller unless agreed otherwise in writing.
- Catastro: The cadastral registry showing physical details and boundaries; your lawyer will check alignment with the Land Registry where relevant.
Property & Building Terms
These terms come up during viewings and in community information packs. They’re particularly useful when comparing apartments and gated communities, where shared facilities and running costs matter.
- Comunidad de Propietarios: The owners’ community that maintains shared areas such as gardens, pools, lifts and security.
- IBI (Impuesto sobre Bienes Inmuebles): Annual municipal property tax (Benahavís is known for relatively low rates).
- Basura: Local rubbish collection fee — €18/year in Benahavís (fixed).
- Trastero: A private storage room, often located in the underground garage area.
- Terraza / Porche: Outdoor space — a terrace or a covered porch area.
- Ascensor: Lift/elevator (worth checking if step-free access matters for you).
- Certificado Energético (EPC): The Energy Performance Certificate required for sale or rental.
- Licencia de Primera Ocupación (LPO): First-occupation licence confirming the property meets building regulations and can be legally inhabited.
Finance & Tax Terms
This is the vocabulary that appears in cost breakdowns, tax filings and bank paperwork. The exact tax you pay depends mainly on whether the property is a resale or a new build.
- ITP (Impuesto de Transmisiones Patrimoniales): Transfer tax on resale purchases (7% in Andalucía).
- IVA: VAT (10%) applied to new-build purchases from developers.
- AJD (Actos Jurídicos Documentados): Stamp duty (≈1.2%) on new builds and, in some cases, mortgage deeds.
- Gastos de Comunidad: Community fees for the maintenance of shared areas and services.
- Retención: A 3% withholding on the sale price when the seller is non-resident, paid to the Spanish tax agency.
- NIE (Número de Identificación de Extranjero): Foreigner ID number required for property and many financial transactions.
- IBAN / Swift / SEPA: Banking codes used for transfers; banks may request extra compliance checks for larger international payments.
- Hipoteca: Mortgage loan — see Financing & Mortgages.
Other Useful Terms
A few extra words you’ll hear when arranging utilities, residency paperwork, renovations or short-term rentals. They’re not always “purchase contract” terms — but they’re part of real life once you own a home here.
- Empadronamiento: Town-hall registration for residents (often needed for schools, healthcare and local admin).
- Urbanización: A planned residential community — sometimes gated, often with shared amenities.
- Reforma: Renovation work; major reforms may require a licence depending on scope.
- Nota Simple: A Land Registry extract showing ownership and any registered debts/charges.
- VFT Licence: Andalusian tourist rental licence (Vivienda con Fines Turísticos) required for short-term letting where permitted.
- Procurador: A court representative used in formal legal proceedings.
- Gestor: An administrative agent who can help with paperwork, tax submissions and residency processes.
Related:
Buyer’s Checklist
Financing & Mortgages
Purchase Costs
Need help interpreting Spanish documents or property terms?
Darren & Angelina — your Personal Property Concierge — can guide you step-by-step.
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