A
AJD (Actos Jurídicos Documentados) – Stamp duty on notarial deeds. When you buy a new-build home you pay it on top of IVA, based on the price stated in the deed; in Andalusia the rate is 1.2%. See also purchase costs.
Arras – Deposit by which buyer and seller commit to the sale, usually 5 to 10% of the price. Under the common form (arras penitenciales), a buyer who withdraws forfeits the deposit, while a seller who withdraws must repay double the amount. Read more about the buying process.
C
Calificación energética – Mandatory energy performance certificate, rated from A (most efficient) to G (least efficient) and issued by a qualified technician. A property cannot be sold or let without one.
Cargas – Encumbrances recorded against a property in the Land Registry, such as a mortgage or an attachment order. Before buying, check that the property is free of encumbrances, or know exactly which ones exist.
Catastro – The Spanish cadastre, a government register under the Ministry of Finance holding the physical, legal and economic details of all real estate. It is separate from the Land Registry (Registro de la Propiedad).
Cédula de habitabilidad – Certificate confirming that a dwelling meets minimum standards for occupation, such as floor area, ventilation and installations. In Andalusia the equivalent is called licencia de ocupación; it is needed to connect utilities.
Certificado de deuda pendiente – Statement from the owners' association confirming whether the seller is up to date with service charges. Request it before the deed is signed.
Cláusula suelo – Clause in a variable-rate mortgage setting a minimum interest rate, regardless of how the Euribor moves. Spanish courts have declared most of these clauses void for lack of transparency.
Comunidad de propietarios – Owners' association of a building or development, governed by the Ley de Propiedad Horizontal. It manages and maintains the shared areas, such as the pool, gardens, lifts and façade.
Contrato de arrendamiento – Tenancy agreement between landlord and tenant, governed by the Ley de Arrendamientos Urbanos (LAU). The tenant pays a periodic rent (renta), usually monthly, and the annual rent review is regulated by law. See also long-term letting.
Contrato de compraventa – Private purchase contract setting out the price, deadlines, method of payment and penalties. It precedes the public deed signed before a notary.
Cuota de participación – The share of a property in the owners' association, expressed as a percentage. It determines your voting weight and your share of the common costs, and is set out in the deed of division (título constitutivo).
D
Derecho de tanteo y retracto – Pre-emption right allowing certain parties, such as a tenant, a co-owner or a public authority, to buy a property on the same terms as a third party. Tanteo applies before the sale, retracto after it.
Derrama – One-off levy by the owners' association to fund works not covered by the ordinary service charge, for example façade renovation or pool repairs. It is sensible to check before buying whether any such levies have been agreed.
E
Embargo – Attachment of a property by a court or public authority as security for a debt. An attached property can be sold, but the charge passes to the new owner unless it is cancelled beforehand.
Escritura pública – Public deed executed before a notary that legally formalises the purchase. The notary verifies the identity of the parties, the title and any encumbrances; the deed is required to register the property in the Land Registry.
Euribor – European reference rate on which most Spanish variable-rate mortgages are based. The rate is usually reviewed annually or every six months. See also financing.
F
Fianza – Security deposit paid by the tenant when signing a tenancy agreement: by law one month's rent for a main residence and two months for other uses. The landlord must lodge it with the designated regional body.
Finca – A property with its own number in the Land Registry. It may be a plot of land, but equally a home, commercial unit or any other registered property.
G
Gastos de comunidad – Monthly or quarterly contribution to the owners' association for the upkeep of shared areas: cleaning, gardening, pool, buildings insurance, concierge and so on. Include these fixed costs in your yield calculation.
Golden Visa – Residence permit that Spain granted to non-EU investors, typically for a property purchase of €500,000 or more. This route was abolished on 3 April 2025: buying property no longer gives a right of residence. More in buying as a foreigner.
H
Hipoteca – Mortgage loan secured on the property being bought. For non-residents, banks usually lend 60 to 70% of the valuation, compared with around 80% for residents; terms for non-residents are typically 20 to 25 years. See financing.
I
IBI (Impuesto sobre Bienes Inmuebles) – Annual municipal property tax payable by the owner, calculated as a percentage of the cadastral value. On the Costa del Sol the rate is indicatively between 0.4% and 1.1%, depending on the municipality.
Impuesto de Patrimonio – Wealth tax on the net assets of individuals, which also applies to non-residents' assets in Spain. Andalusia has applied a 100% relief since 2022, so in practice the tax is generally not levied there. Have your own situation reviewed by a tax adviser.
IRNR (Impuesto sobre la Renta de No Residentes) – Income tax for owners not resident in Spain. If the property is let, the rental income is taxed; if not, a notional income based on the cadastral value is taxed. The rate is 19% for EU residents and 24% for others (as at 2026). See also costs.
ITP (Impuesto de Transmisiones Patrimoniales) – Transfer tax on the purchase of a resale property. In Andalusia the general rate is 7% (as at 2026); it must be filed within 30 working days of signing the deed. See purchase costs.
IVA (Impuesto sobre el Valor Añadido) – VAT on the purchase of a new-build home, paid to the developer together with the price. The rate for housing is 10%, or 4% for state-subsidised homes (VPO). See costs.
L
Ley de Propiedad Horizontal – The 1960 act (Ley 49/1960) governing owners' associations. It sets out owners' rights and obligations, the rules for meetings, the majorities required for decisions and the management of shared areas.
Licencia de primera ocupación (LPO) – Municipal licence confirming that a new-build home complies with planning and building regulations. Without it, water, electricity and gas cannot be connected for the first time.
N
NIE (Número de Identificación de Extranjero) – Tax identification number every foreign national needs for economic transactions in Spain, including buying property. You apply for it at a Spanish foreigners' office or at the Spanish consulate in your home country. See the buying process.
Nota simple – Land Registry extract showing the owner, the description and size of the property and any encumbrances such as mortgages or attachments. It is the first document to request when considering a purchase.
Notario – Notary: a public official who drafts the purchase deed, checks the identity of the parties and any encumbrances, and arranges payment of taxes and registration. As the buyer, you are entitled to choose the notary.
Nuda propiedad – Bare ownership: you own the property, but someone else (the usufructuary) has the right to use it and receive its income. Full enjoyment passes to you only when the usufruct ends, usually on the usufructuary's death. This is common in inheritances; see inheritance tax in Andalusia.
O
Obra nueva – New-build property sold for the first time, either off-plan or completed. You pay IVA (10%) and AJD (1.2% in Andalusia) instead of the ITP that applies to resale homes. Read more about buying off-plan.
P
Plusvalía municipal – Municipal tax (IIVTNU) on the increase in land value since the previous transfer. On a sale it is paid by the seller, on an inheritance by the heir. Following a 2021 ruling of the Spanish Constitutional Court, it is as a rule only payable where there is an actual gain. See also capital gains tax for non-residents.
Poder notarial – Power of attorney executed before a notary, authorising someone to act on your behalf, for example to sign the purchase deed. This is common when the buyer cannot travel to Spain; see buying remotely.
Proindiviso – Joint ownership of a single property by several people without physical division. Each holds a notional share, and selling the whole property requires the consent of all co-owners.
R
Referencia catastral – Twenty-character cadastral reference that identifies each property unambiguously. It appears on the IBI bill, is needed for the deed and can be looked up free of charge online at the cadastre.
Registro de la Propiedad – Public Land Registry where rights over real estate are recorded. Registration is not compulsory but strongly advisable: it protects you against third parties and is a condition for obtaining a mortgage.
Representante fiscal – Tax representative resident in Spain who acts for a non-resident before the tax authorities. Mandatory for owners from outside the EU and advisable for all non-residents with Spanish tax obligations.
Reserva – Initial payment, usually €3,000 to €6,000, that takes the property off the market until the arras or purchase contract is signed. It is normally deducted from the final price.
S
Segunda mano – Resale property that has had at least one previous owner. On purchase you pay ITP (7% in Andalusia) instead of IVA and AJD.
Señal – Payment made as a sign of serious interest. Unless the contract states that it constitutes arras penitenciales, a señal is as a rule treated as an advance on the price, without a penalty for withdrawing. Have the wording checked by an independent lawyer.
Servidumbre – Easement: a property right limiting the use of one plot for the benefit of another, such as a right of way or a right to light and views. Easements should be recorded in the Land Registry.
Subrogación hipotecaria – Taking over the seller's existing mortgage instead of arranging a new loan. This can save set-up costs, but requires the bank's approval. The term is also used for switching to a different lender.
Superficie construida – Gross built area, measured from the outside of the walls and including interior partitions and, where applicable, a share of common areas. It is always larger than the superficie útil, so check which figure is being quoted.
Superficie útil – Net usable area, measured inside the walls and excluding partitions, pillars and service ducts. Typically 15 to 25% smaller than the superficie construida.
T
Tasación – Valuation by a valuation firm approved by the Bank of Spain. It is required for a mortgage, and the valuation determines the maximum loan amount. The cost is indicatively between €250 and €500. See valuations and values.
Tipo de interés – Mortgage interest rate. It may be fixed for the full term, variable (Euribor plus a margin, reviewed periodically) or mixed: fixed for the first few years, then variable.
Título constitutivo – Deed of division that splits a building into separate units and thereby creates the owners' association. It describes each home, commercial unit or garage with any attached storage room or parking space, and sets the cuotas de participación.
U
Usufructo – Usufruct: the right to use another person's property, let it and receive the rent. The owner retains the bare ownership (nuda propiedad). Usufruct is common in inheritances.
V
Valor catastral – Cadastral value assigned to each property by the authorities, used as the basis for IBI and other taxes. It is usually below market value and is updated periodically.
Valor de mercado – Market value: the price a property could be expected to fetch under normal conditions, taking into account location, condition, size and comparable properties. Not to be confused with the cadastral value or the valuation figure.
Vivienda de protección oficial (VPO) – Home built with public support, subject to a price cap and buyer conditions such as income limits. Resale is restricted for a set period, and IVA is 4% instead of 10%.
Vivienda de uso turístico (VUT) – Property let to tourists on a short-term basis for payment. In Andalusia, where the term vivienda con fines turísticos (VFT) is also used, it must be entered in the tourism register and meet specific requirements. See the article on the tourist licence.
Z
Zona común – Shared areas of a development, such as the pool, gardens, lifts, staircases, corridors and communal parking. Their upkeep is funded from the gastos de comunidad.
Questions about a term?
If you come across a term that is not listed here, or would like to know what a concept means for your situation, CostaVista supports you throughout the buying process and goes through the documents with you. Feel free to get in touch.