Buying Property in Spain - Legal Terms Glossary A to Z
When buying a property in Spain you will come across many new legal terms.
This glossary will help explain many of them in brief for you.
A
ABOGADO: Lawyer, solicitor
ACTA NOTARIAL: Notary´s certificate. Document giving details of the given
property to be added into the land register.
ACTA DE NOTORIEDAD: procedures for registration in the land register.
AFECCIONES REGISTRALES: charges against a property in the register
ARRAS: secured deposit - if an ‘arras' is arranged, the reservation agreement is
drawn up in a way that the purchaser understands that they will forfeit the deposit
or the seller will pay back double the amount if either fails to complete the deal.
ARRENDAMIENTO DE OBRA: a contract for construction with a builder
B
BOLETIN DE ENGANCHE: certificate for the correct installation of electrical wiring
a legal precondition for getting connected to electrical power.
C
CANCELACION: note of cancellation for charges against a property in the land
register
CERTIFICACION: certification
CERTIFICADO BANCARIO DE DEVISAS: Certificate of the bank that the price of
purchase was paid with money of known origin (required as part of money
laundering legislation)
CERTIFICADO FINAL DE OBRA: Architect certificate confirming the construction
has been completed in compliance with building regulations
CODIGO CIVIL: civil law
COLEGIO OFICIAL DE ARQUITECTOS: Official College of Architects
COMMUNIDAD DE PROPIETARIOS: Community of Property Owners, which
manages the building or development. A new owner becomes a member of the
owners community.
CONTRATO DE ARRENDAMIENTO: rental contract.
CONTRATO DE OPCION: contract of option giving the right to purchase a certain
property usually paying 10% of the property price.
COPROPIETARIO: part owner of a property in a community or joint owner of a
house or land.
CUOTA: Percentage that the owner has in a community or jointly owned property
or land.
D
DECLARACION DE OBRA NUEVA: Notarised declaration of new building works.
DELEGACION DE URBANISMO: District Surveyor's Office – Who grant building
permits
DEMARCACION DE COSTAS: Department for Coastal Protection - ensures
compliance with coastal environmental and protection planning rules and
regulations.
DERECHO DE RETENCION: Right of retention. The right of a party to a contract to
retain an amount in case there is a default on the contract. Such as six months
rental on retention.
E
EDIFICABILIDAD MAXIMA: maximum floor area that can be built
ESCRITURA: Title Deeds to a property or land:
Escritura de Compraventa - This document is signed by the Notary and shows who
is purchasing a property.
Escritura Publica - This is the official document which shows that you are the legal
owner, usually taking a few months after completion to be sent to you.
F
FIANZA: Deposit, security
FINCA: Property, plot of land
FINCA REGISTRAL: Registered property or land
H
HACIENDA PUBLICA: Tax Office
HIPOTECA: Mortgage
I
I.B.I (IMPUESTO SOBRE BIENES IMMUEBLES): Similar to council tax or rates
IMPUESTO DE ACTOS JURIDICOS DOCUMENTADOS: Stamp duty (1 % of the
purchase price)
IMPUESTO DE TRANSMISIONES PATRIMONIALES: Transfer tax on property 7%
of the amount declared in the Escritura IE title deeds
IMPUESTO SOBRE CONSTRUCCIONES, INSTALACIONES Y OBRAS: Local tax on
building works
IMPUESTO SOBRE EL PATRIMONIO / PLUSVALIA: Local tax on capital gain of
real estate
IMPUESTO SOBRE SUCESIONES Y DONACIONES: death duty, inheritance tax
and gift/donation tax
IMPUESTOS MUNICIPALES: Local government taxes
IMPUESTO SOBRE EL VALOR AÑADIDO (IVA): Value Added Tax (VAT) - usually
16% maximum
IMPUESTO SOBRE LA RENTA A PERSONAS FISICAS (IRPF): Income tax
L
LEY DE ARRENDAMIENTOS URBANOS: Rental law (long term not holiday rental)
LEY DE LA PROPIEDAD HORIZONTAL: Law relates to communities and gives
legal rules for apartments, groups of homes and urbanisations
LICENCIA DE OBRAS: Licence to build
N
NIE (NUMERO PERSONAL DE INDENTIFICACION DE EXTRANJERO): ID number
for non- residents
NIF (NUMERO DE INDENTIFICACION FISCAL): ID number for residents
NOTA SIMPLE INFORMATIVA: Extract from the land register
NOTARIO - A state appointed official who notarises public documents such as
marriage, divorce and property purchase. He/she is only there to make sure that a
contract is legally correct. The notary does not have either parties' interests in
mind, only the legitimacy of the documents but they must be satisfied both parties
understand the documents.
O
OBLIGACION PERSONAL: Unlimited tax obligations for residents
OBLIGACION REAL: Limited tax obligations for non-residents
P
PARCELA: Plot
PERITO: Valuer / Assessor
PERMISO DE OBRA NUEVA O DE CONSTRUCCION: Building permit fro new
building
PLAN PARCIA A development plan
PLANTA: Floor Planta Primera = First Floor
POSESION: Possession
PRECIO: Purchase price
PROCURADOR: Representative at court in addition to a lawyer (like a barrister)
PROMOTOR: Developer
PROPIEDAD: Property
PROPIETARIO: Owner
R
REFERENCIA CATASTRAL - Land Registry document relating to the property
location.
REGISTRO DE LA PROPIEDAD: Land Register
S
S.A. (SOCIEDAD ANONIMA): PLC
S.L. (SOCIEDAD LIMITADA): LTD
SEPARACION A LINDEROS: Minimum distance of a building to the neighbouring
property
SERVIDUMBRE DE TRANSITO: Right of Way (if there is no direct public access to
the property)
SOLAR: Building plot
SUELO NO URBANIZABLE: Green belt protected land
SUELO URBANIZABLE: Areas of land that may be built on - not green belt
SUELO URBANO: Urban area
T
TASA: Local tax on a building permit
TOMA DE POSESION: Handing-over the keys
TRASPASO: Transfer of rental or lease contract.
U
URBANIZACION PRIVADA: Private property
USO DE OFICINAS: office use permitted
USOCAPCION: Right to use property for a fixed time period
USUFRUCTO: Right to use and enjoy a property " quiet enjoyment "
V
VALOR CATASTRAL: Rateable value reviewed annually and the base for
calculating land tax.
VALOR COMPROBADO POR LA ADMINISTRACION:
Assumed value of a property as a base for the property tax
VALOR REAL: Real value
Z
ZONA DE SERVIDUMBRE DE PROTECCION:
Protected coast stretches where there are specific rules concerning construction.
These are areas along developed coastal areas where spaces are kept free of
building usually around 200 meters wide.
When buying a property in Spain you will come across many new legal terms.
This glossary will help explain many of them in brief for you.
A
ABOGADO: Lawyer, solicitor
ACTA NOTARIAL: Notary´s certificate. Document giving details of the given
property to be added into the land register.
ACTA DE NOTORIEDAD: procedures for registration in the land register.
AFECCIONES REGISTRALES: charges against a property in the register
ARRAS: secured deposit - if an ‘arras' is arranged, the reservation agreement is
drawn up in a way that the purchaser understands that they will forfeit the deposit
or the seller will pay back double the amount if either fails to complete the deal.
ARRENDAMIENTO DE OBRA: a contract for construction with a builder
B
BOLETIN DE ENGANCHE: certificate for the correct installation of electrical wiring
a legal precondition for getting connected to electrical power.
C
CANCELACION: note of cancellation for charges against a property in the land
register
CERTIFICACION: certification
CERTIFICADO BANCARIO DE DEVISAS: Certificate of the bank that the price of
purchase was paid with money of known origin (required as part of money
laundering legislation)
CERTIFICADO FINAL DE OBRA: Architect certificate confirming the construction
has been completed in compliance with building regulations
CODIGO CIVIL: civil law
COLEGIO OFICIAL DE ARQUITECTOS: Official College of Architects
COMMUNIDAD DE PROPIETARIOS: Community of Property Owners, which
manages the building or development. A new owner becomes a member of the
owners community.
CONTRATO DE ARRENDAMIENTO: rental contract.
CONTRATO DE OPCION: contract of option giving the right to purchase a certain
property usually paying 10% of the property price.
COPROPIETARIO: part owner of a property in a community or joint owner of a
house or land.
CUOTA: Percentage that the owner has in a community or jointly owned property
or land.
D
DECLARACION DE OBRA NUEVA: Notarised declaration of new building works.
DELEGACION DE URBANISMO: District Surveyor's Office – Who grant building
permits
DEMARCACION DE COSTAS: Department for Coastal Protection - ensures
compliance with coastal environmental and protection planning rules and
regulations.
DERECHO DE RETENCION: Right of retention. The right of a party to a contract to
retain an amount in case there is a default on the contract. Such as six months
rental on retention.
E
EDIFICABILIDAD MAXIMA: maximum floor area that can be built
ESCRITURA: Title Deeds to a property or land:
Escritura de Compraventa - This document is signed by the Notary and shows who
is purchasing a property.
Escritura Publica - This is the official document which shows that you are the legal
owner, usually taking a few months after completion to be sent to you.
F
FIANZA: Deposit, security
FINCA: Property, plot of land
FINCA REGISTRAL: Registered property or land
H
HACIENDA PUBLICA: Tax Office
HIPOTECA: Mortgage
I
I.B.I (IMPUESTO SOBRE BIENES IMMUEBLES): Similar to council tax or rates
IMPUESTO DE ACTOS JURIDICOS DOCUMENTADOS: Stamp duty (1 % of the
purchase price)
IMPUESTO DE TRANSMISIONES PATRIMONIALES: Transfer tax on property 7%
of the amount declared in the Escritura IE title deeds
IMPUESTO SOBRE CONSTRUCCIONES, INSTALACIONES Y OBRAS: Local tax on
building works
IMPUESTO SOBRE EL PATRIMONIO / PLUSVALIA: Local tax on capital gain of
real estate
IMPUESTO SOBRE SUCESIONES Y DONACIONES: death duty, inheritance tax
and gift/donation tax
IMPUESTOS MUNICIPALES: Local government taxes
IMPUESTO SOBRE EL VALOR AÑADIDO (IVA): Value Added Tax (VAT) - usually
16% maximum
IMPUESTO SOBRE LA RENTA A PERSONAS FISICAS (IRPF): Income tax
L
LEY DE ARRENDAMIENTOS URBANOS: Rental law (long term not holiday rental)
LEY DE LA PROPIEDAD HORIZONTAL: Law relates to communities and gives
legal rules for apartments, groups of homes and urbanisations
LICENCIA DE OBRAS: Licence to build
N
NIE (NUMERO PERSONAL DE INDENTIFICACION DE EXTRANJERO): ID number
for non- residents
NIF (NUMERO DE INDENTIFICACION FISCAL): ID number for residents
NOTA SIMPLE INFORMATIVA: Extract from the land register
NOTARIO - A state appointed official who notarises public documents such as
marriage, divorce and property purchase. He/she is only there to make sure that a
contract is legally correct. The notary does not have either parties' interests in
mind, only the legitimacy of the documents but they must be satisfied both parties
understand the documents.
O
OBLIGACION PERSONAL: Unlimited tax obligations for residents
OBLIGACION REAL: Limited tax obligations for non-residents
P
PARCELA: Plot
PERITO: Valuer / Assessor
PERMISO DE OBRA NUEVA O DE CONSTRUCCION: Building permit fro new
building
PLAN PARCIA A development plan
PLANTA: Floor Planta Primera = First Floor
POSESION: Possession
PRECIO: Purchase price
PROCURADOR: Representative at court in addition to a lawyer (like a barrister)
PROMOTOR: Developer
PROPIEDAD: Property
PROPIETARIO: Owner
R
REFERENCIA CATASTRAL - Land Registry document relating to the property
location.
REGISTRO DE LA PROPIEDAD: Land Register
S
S.A. (SOCIEDAD ANONIMA): PLC
S.L. (SOCIEDAD LIMITADA): LTD
SEPARACION A LINDEROS: Minimum distance of a building to the neighbouring
property
SERVIDUMBRE DE TRANSITO: Right of Way (if there is no direct public access to
the property)
SOLAR: Building plot
SUELO NO URBANIZABLE: Green belt protected land
SUELO URBANIZABLE: Areas of land that may be built on - not green belt
SUELO URBANO: Urban area
T
TASA: Local tax on a building permit
TOMA DE POSESION: Handing-over the keys
TRASPASO: Transfer of rental or lease contract.
U
URBANIZACION PRIVADA: Private property
USO DE OFICINAS: office use permitted
USOCAPCION: Right to use property for a fixed time period
USUFRUCTO: Right to use and enjoy a property " quiet enjoyment "
V
VALOR CATASTRAL: Rateable value reviewed annually and the base for
calculating land tax.
VALOR COMPROBADO POR LA ADMINISTRACION:
Assumed value of a property as a base for the property tax
VALOR REAL: Real value
Z
ZONA DE SERVIDUMBRE DE PROTECCION:
Protected coast stretches where there are specific rules concerning construction.
These are areas along developed coastal areas where spaces are kept free of
building usually around 200 meters wide.
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