Spanish Property Glossary

Transfer tax on resale property purchases. In the Comunidad Valenciana the standard rate is 10% of the purchase price or the government reference value (valor de referencia), whichever is higher. Paid by the buyer within 30 days of completion via the gestoría.

Spanish VAT at 10%, applied to new-build residential property (obra nueva). Paid to the developer at completion and then declared to the tax authority. Not applicable to resale property, which pays ITP instead.

Stamp duty on notarised documents. Applies to new-build purchases (1.5% in the Comunidad Valenciana) and to mortgage deeds. Does not apply to resale transactions, where only ITP is due.

Annual council tax based on the cadastral value of the property. Paid by the owner each year, regardless of residency status. Rates vary by municipality — typically €300–€2,500 per year for residential property.

Tax on the increase in cadastral land value between purchase and sale. Legally owed by the seller, though some sellers try to pass it to the buyer by contract clause — resist this. Since a 2021 Constitutional Court ruling, the tax is only payable if there has been an actual gain in land value.

Annual tax declaration for non-residents owning property in Spain. If the property is not rented, an imputed income of 1.1–2% of the cadastral value is taxed at 24% (for non-EU residents) or 19% (EU/EEA). If rented, actual rental income is declared at the same rates. Filed quarterly for rental income or annually for imputed income.

Annual filing required for Spanish tax residents who hold more than €50,000 in any of three categories of assets outside Spain: bank accounts, securities, and real estate. Does not apply to non-residents. Required once you become Spanish tax resident and hold significant UK, US, or other foreign assets.

The Spanish tax authority's (Catastro) estimated market value for each property. ITP and IHD inheritance tax are calculated on whichever is higher — the declared purchase price or the valor de referencia. Check the reference value before making an offer; it directly affects your tax bill.

Annual municipal fee for rubbish collection, billed separately from IBI. Typically €100–€300 per year. Paid to the local ayuntamiento (town hall).

The foreigner tax identification number required for all fiscal transactions in Spain: property purchase, bank account, utility contracts, tax filings. Applied for once and does not expire. Obtainable at a Spanish consulate in your home country or at a National Police immigration office in Spain. Your lawyer can apply on your behalf with a power of attorney.

The physical identity card issued to non-EU residents with a Spanish residency visa (NLV, DNV, work permit). Distinct from the NIE: non-residents get only an NIE number, not a TIE card. EU citizens get a green certificate of registration rather than a TIE.

The official deed of sale signed at the notary at completion. The escritura is the legal proof of ownership. After signing, it is submitted for registration at the Registro de la Propiedad, after which you receive the registered deed. Keep the original in a safe place.

A summary extract from the Registro de la Propiedad showing the current owner, the property description, and any encumbrances (mortgages, embargoes, easements). Your lawyer orders this at the start of due diligence. Always order a fresh nota simple — do not accept one provided by the seller.

The binding private contract signed after due diligence, typically under Article 1454 of the Civil Code (Arras Penitenciales). You pay a 10% deposit. If the buyer withdraws, the deposit is forfeited. If the seller withdraws, they must repay double the deposit. Sets the completion date and key conditions.

A notarised document authorising your lawyer to act on your behalf in Spain — signing contracts, attending the notary, applying for an NIE, opening a bank account. Essential for remote purchases. Must be notarised in your home country and apostilled under the Hague Convention to be valid in Spain.

A licensed administrative agency that handles the practical filing work after completion: paying ITP or IVA/AJD to the tax authority, submitting the deed for registration at the property registry, and returning the registered deed to you. Not a lawyer — they carry out the procedural steps your lawyer has prepared.

The government registry recording the physical boundaries and cadastral value of every parcel of land in Spain. Used to calculate IBI and valor de referencia. Your lawyer checks the catastro record during due diligence to confirm the property's registered surface area and boundaries match reality.

The licence confirming that a property meets minimum habitability standards and is legally approved for residential use. Required when connecting utilities and when reselling. For new builds it is the Licencia de Primera Ocupación. Always verify this exists before signing the arras.

A written agreement between a buyer and a buyer-side advisor setting out the scope of the search, the advisory fee, and the advisor's mandate to represent the buyer exclusively — not the seller or any listing. Standard practice in a true buyer-side advisory relationship.

A Spanish residency visa for non-EU nationals who can support themselves financially without working in Spain: retirees, people living off investments, pension income, or savings. Requires proof of sufficient income (approx. €28,000+/year for a couple) and private health insurance. Renewable annually for the first two years, then biannually.

A Spanish residency visa for non-EU nationals who work remotely for clients or employers based outside Spain. Income threshold roughly €2,650/month (2026). Permits up to 20% of income from Spanish clients. Valid for 1 year, renewable for 2-year periods up to 5 years, after which permanent residency becomes available.

The Spanish residency-by-investment scheme that previously granted residency to non-EU nationals purchasing property worth €500,000 or more. Abolished for the real estate route by Real Decreto-ley 1/2025, effective 3 April 2025. Applications submitted before that date are still being processed. No equivalent replacement exists: buyers seeking residency must now use the NLV, DNV, or another visa route.

The local government register of all residents in a municipality. Required after you establish residency in Spain — for accessing public healthcare, enrolling children in state schools, and various administrative procedures. Register at your local ayuntamiento with your passport, NIE, and proof of address.

A special tax regime for individuals who become Spanish tax residents after working abroad. Applies a flat 24% rate on Spanish-source income up to €600,000 (47% above), and generally exempts foreign-source income from Spanish tax for 6 years. Available to NLV and DNV holders and to company transferees. Application must be made within 6 months of registering as Spanish tax resident.

A UK government certificate allowing UK State Pension recipients to access Spanish public healthcare funded by the UK — with no premium in Spain. Issued by the NHS Business Services Authority. Preserved under the UK-EU Withdrawal Agreement. The single most financially significant benefit for British retirees relocating to Spain.

The EU regulation governing cross-border inheritance. Under Brussels IV, non-EU nationals (including US and UK citizens) can elect their home country's law to govern their estate by express clause in a Spanish will — overriding Spanish forced heirship rules, which otherwise reserve up to two-thirds of an estate for defined heirs. The election must be explicitly drafted; it does not apply by default.

A property being sold for the first time by the developer, either under construction (off-plan) or recently completed. Subject to IVA (10%) + AJD (1.5%) rather than ITP. Comes with a 10-year structural warranty (seguro decenal) and a Licencia de Primera Ocupación.

Buying a property before it has been built. You pay stage payments during construction — typically 10–30% on contract, further instalments during build, and the balance on completion. Developer must hold stage payments in a guarantee account (cuenta de garantía) or insure them. Completion timelines are 18–36 months. Due diligence on the developer and the licence is critical.

The legal body of all owners in a building or residential complex, governed by Spain's Horizontal Property Law. Manages shared areas, maintenance, and building insurance. Each owner pays a monthly or quarterly cuota de comunidad. Your lawyer checks the community's accounts during due diligence to confirm no outstanding debts attach to the property.

A Spanish mortgage. Non-resident foreign buyers are typically offered 60–70% LTV at fixed rates of 3.0–4.0% over 20–30 year terms (2026 market). Spanish banks require income documentation, 3 years of tax returns, 6 months of bank statements, and an NIE. Timeline from application to formal offer is 6–10 weeks.

The standardised European mortgage offer document. Once issued, the bank cannot change the terms for at least 10 days — the mandatory cooling-off period during which you review the offer with a notary before signing. Read every clause; your lawyer should review it alongside you.

The benchmark rate for variable-rate mortgages in Spain (typically Euribor + spread). A 12-month Euribor is the most common reference. Fixed-rate mortgages, now the majority of Spanish mortgage sales, are not directly tied to Euribor but are priced relative to it.

The formal property valuation commissioned by the bank from a licensed tasador (appraiser). The mortgage offer is based on the lower of the tasación value and the purchase price. Costs €300–€600, paid by the buyer. If the tasación comes in significantly below the agreed price, you will need to cover the gap from your own funds.

The mortgage amount expressed as a percentage of the appraised property value. Spanish banks offer up to 80% LTV for residents and typically 60–70% for non-residents. A 70% LTV on a €500,000 property means a €350,000 mortgage; the buyer provides €150,000 down payment plus closing costs from their own funds.