Real estate glossary
18 common terms in Spanish property transactions, explained clearly.
Arras (deposit contract)
10-20% deposit binding both buyer and seller.
Regulated by article 1454 of the Spanish Civil Code. The buyer typically pays 10-20% of the price as deposit. If the buyer pulls out, they lose the deposit. If the seller pulls out, they return double. Sets a deadline for notary signing, allocation of fees and contingencies.
ITP (Property Transfer Tax)
Tax paid by the buyer on second-hand homes.
Applied on the deed price for second-hand homes. Catalonia: 10% general, 11% above €1M. Madrid: 6%, reduced to 4% for under-32s on first primary home. Settled within 30 days of signing.
AJD (Stamp Duty)
Tax on notarised documents — applies on new builds.
Regional tax on notarised documents. On new builds it's paid alongside VAT (10%). Rates: 1.5% Catalonia, 0.75% Madrid. On second-hand homes it doesn't apply (ITP is paid instead).
IRNR (Non-Resident Income Tax)
Tax paid by non-resident property owners in Spain.
Taxes income earned in Spain by non-tax-residents. On rentals: 19% for EU/EEA, 24% for third countries. On vacant property: imputed 1.1-2% of cadastral value annually. Filed with form 210.
Plusvalía municipal
Local tax on the increase in urban land value.
Tax paid by the seller to the local council on the gain in urban land value between purchase and sale. Since 2021, taxpayers may choose between objective (tables) or real (cadastral value difference) method, opting for the lower.
FEIN (European Standardised Information Sheet)
Binding mortgage offer in EU standard format.
Mandatory document the bank delivers to the applicant before signing the mortgage. Contains all conditions: principal, term, interest, fees, linked insurance, APR. The bank is bound by the terms for at least 10 days (Law 5/2019).
Pre-mortgage notarial act
Free notary check before signing a mortgage.
Mandatory since Law 5/2019. The notary reviews the FEIN with the client and confirms understanding. Signed at least 10 days before the mortgage, free of charge. Without it, the mortgage cannot be signed.
Nota simple (Land Registry note)
Land Registry consultation showing liens and ownership.
Informative document from the Registry showing current owner, property description, registered surface, liens (mortgages, embargoes), easements. Requested for €9 online at sede.registradores.org, received within 24h. First step of due diligence.
Habitability certificate
Regional certificate that a home meets habitability standards.
Mandatory in Catalonia for sale, rental and utility connection. Verifies surface, height, ventilation, minimum equipment. Issued by the College of Architects, takes 15-30 days. Not mandatory in Madrid (the energy certificate is).
ITE (Building Technical Inspection)
Mandatory inspection of buildings over 45 years old.
Periodic technical examination required in Catalonia for residential buildings over 45 years old. Verifies structure, envelope, installations, accessibility. Performed by a registered architect. Result: favourable, with minor/serious/very serious deficiencies. Required to sell.
Energy certificate
A-G label rating energy efficiency.
Mandatory to sell or rent. Rates primary energy consumption and CO₂ emissions. Issued by an authorised technician, valid 10 years (G label, 5 years). Includes improvement recommendations. Typical cost: €80-200.
NIE (Foreigner Identification Number)
Spanish tax ID for foreigners.
Alphanumeric code Spain assigns to any foreigner to file taxes, open a bank account or buy property. Applied at the Spanish consulate in your country or at an Extranjería office. Takes 2-6 weeks. Can be processed by attorney if you can't travel.
Real-estate Golden Visa
Residence permit through real-estate investment (withdrawn 2025).
Residence route in force until April 2025 via property purchase of €500,000+ free of liens. The Spanish Government announced withdrawal in 2024. Current alternatives: business visa, researcher visa, Beckham Law for remote workers.
Community of owners
Management body of a building under horizontal property regime.
Regulated by the Horizontal Property Law. Each owner has a participation coefficient (quota) and pays common costs (cleaning, lift, insurance, administrator). Up-to-date certificate required on sale. Decisions in assembly: simple or qualified majority depending on matter.
IBI (Property Tax)
Annual local property tax.
Local tax paid yearly by the owner on the cadastral value. Rate set by the council (typically 0.4-1.1%). On sale, prorated between seller and buyer according to signing date.
LTV (Loan to Value)
Financing percentage over property value.
Ratio between loan principal and the lower of appraisal or purchase price. Banks lend up to 80% LTV on primary homes for residents, 60-70% on second homes or non-residents. A lower LTV (more equity) usually improves the interest rate.
Euribor
Eurozone interbank reference rate.
Daily rate at which European banks lend to each other. Common reference for variable mortgages (payment = Euribor + spread). Published by the European Money Markets Institute. Most-used tenors: 3, 6 and 12 months. Its evolution drives variable mortgage payments at each review.
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