Glossary: Property & Legal Terms in Spain
A practical glossary of key Spanish real estate and legal terms — from Arras to VFT Licence — to help you understand purchase contracts, documents and conversations during your Benahavís property journey.
Legal & Contract Terms
- Arras / Contrato de Arras: Reservation or deposit contract confirming the buyer’s intention to purchase and setting penalties if either party withdraws.
- Escritura Pública: The public deed signed before a notary to formalise property ownership transfer.
- Notario (Notary): Public official who certifies legal documents, ensures taxes are paid, and registers the new title.
- Registro de la Propiedad: The Land Registry where ownership and encumbrances are officially recorded.
- Poder Notarial (Power of Attorney): Legal document authorising your lawyer to act on your behalf in Spain.
- Compraventa: Purchase/sale contract signed at notary; the final stage of the transaction.
- Plusvalía Municipal: Local capital gains tax on land value increase (paid by seller unless agreed otherwise).
- Catastro: The cadastral registry showing the property’s physical details, location and official boundaries.
Property & Building Terms
- Comunidad de Propietarios: The community of owners that manages shared areas, gardens and pools in multi-unit developments.
- IBI (Impuesto sobre Bienes Inmuebles): Annual municipal property tax; relatively low in Benahavís.
- Basura: Local rubbish collection fee — €18/year in Benahavís (fixed).
- Trastero: Storage room, often in the underground garage area.
- Terraza / Porche: Terrace or covered outdoor area.
- Ascensor: Lift or elevator (check for step-free access if required).
- Certificado Energético (EPC): Mandatory energy efficiency certificate required for sale or rental.
- Licencia de Primera Ocupación (LPO): First-occupation licence confirming a property meets building regulations and can be legally inhabited.
Finance & Tax Terms
- ITP (Impuesto de Transmisiones Patrimoniales): Transfer tax on resale property purchases (7% in Andalucía).
- IVA: Value-added tax (10%) on new-build properties from developers.
- AJD (Actos Jurídicos Documentados): Stamp duty (≈1.2%) on new-builds and some mortgage deeds.
- Gastos de Comunidad: Community fees for maintenance of shared areas.
- Retención: 3% tax withheld on sale price if the seller is non-resident; paid to the Spanish tax agency.
- NIE (Número de Identificación de Extranjero): Foreigner ID number required for any property or financial transaction.
- IBAN / Swift / SEPA: Banking codes used for EU transfers; ensure accounts are in your name for AML compliance.
- Hipoteca: Mortgage loan — see Financing & Mortgages.
Other Useful Terms
- Empadronamiento: Town-hall registration for residents (required for schools, healthcare etc.).
- Urbanización: Planned residential community (gated or open, with shared amenities).
- Reforma: Renovation or upgrade work (major reforms may need licence).
- Nota Simple: Extract from Land Registry showing current ownership and debts.
- VFT Licence: Andalusian tourist rental licence (Vivienda con Fines Turísticos) required for short-term letting.
- Procurador: Legal court representative used in formal proceedings.
- Gestor: Administrative agent who handles paperwork, taxes and residency matters.
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.
Contact us →