Buying property in Spain
Glossary of terms
The Spanish terms you will come across when buying an apartment or villa on the Costa del Sol, explained briefly in plain English. For each one you will find what it means, when you will meet it and where to learn more. We are always happy to explain anything in person too.
47 terms · updated 16 October 2026
A
- AJD (Actos Jurídicos Documentados)stamp duty
A tax on documents executed before a notary. When you buy from a developer in Andalusia, it is 1.2% of the purchase price and is paid together with VAT (IVA).
When you will come across itWhen you sign the deed of sale at the notary for a property in a developer project. You do not pay it on a resale property, where ITP applies instead.
- Apostila (apostilla de La Haya)apostille, certification of a document for use abroad
A certificate confirming that the signature and stamp on an official document are genuine, so that the authorities of another country will accept it. It is based on the 1961 Hague Convention, to which the Czech Republic, Slovakia and Spain are all parties. In the Czech Republic, apostilles for notarial documents are issued by the Ministry of Justice.
When you will come across itMost often for a power of attorney that you sign before a notary outside Spain, for example in the Czech Republic or Slovakia, and that is then used in Spain.
- Arras (contrato de arras penitenciales)deposit contract
A private contract for a resale property in which the buyer and the seller commit to the sale. The buyer pays a deposit, usually 10% of the price. If the buyer pulls out, the deposit is forfeited; if the seller pulls out, they must pay back twice the amount (Article 1454 of the Spanish Civil Code).
When you will come across itAbout 2 to 4 weeks after the reservation, before signing at the notary. The deposit is sometimes also called señal.
- Aval bancario (garantía individual)bank guarantee for deposits
From the moment the building permit is issued, a developer must cover every deposit you pay with a bank guarantee or insurance (seguro de caución), including taxes and statutory interest. Each buyer receives their own individual guarantee, and the money goes into a special account used only for the construction. If construction does not start or is not completed within the agreed period, you are entitled to have your deposits refunded (Law 38/1999, additional provision 1).
When you will come across itFor a developer project, when you sign the private purchase contract and with every further payment before completion.
B
- Basura (tasa de basura)waste collection charge
A municipal charge for collecting and processing waste, paid by the owner of the property. The amount and the way it is paid vary from one municipality to the next.
When you will come across itIt is one of the annual costs of ownership, along with IBI and the community of owners' fees.
C
- Catastrocadastre, the property register for tax purposes
A state register that describes the location, area and use of every property and sets its cadastral value (valor catastral). IBI is calculated from this value. The cadastre does not record ownership, which is the job of the Registro de la Propiedad. The details in the two registers may differ, especially for older properties.
When you will come across itWhen the property is checked before you buy, and then every year with IBI.
- Certificado de eficiencia energéticaenergy performance certificate
Rates a property's energy consumption on a scale from A to G. The energy label must appear in every listing, and the certificate is attached to the purchase contract. It is valid for no more than 10 years, or only 5 years for class G. New buildings for which the building permit was applied for from the end of September 2020 must meet nearly zero-energy requirements (RD 732/2019).
When you will come across itAlready in the listing, and then when signing at the notary. For a home under construction, the label shown is based on the project design.
- Certificado de registro de ciudadano de la UniónEU citizen registration certificate
If you, as an EU citizen, want to live in Spain for more than three months, you must register in person in the Central Register of Foreigners at the police foreigners' office within three months of arrival (form EX-18). You receive the certificate with your NIE number on the spot (Real Decreto 240/2007, Article 7).
When you will come across itOnce you decide to move here permanently. You do not need it to buy a property or for occasional stays. The NIE is enough.
- Certificado de residencia fiscalcertificate of tax residence
Confirmation from the tax authority of the country in which you are tax resident. In the Czech Republic and in Slovakia it is issued by your local tax office.
When you will come across itWhen you need to prove in Spain that you pay income tax at home, for example under a double taxation agreement.
- Certificado final de obra (CFO)certificate of completion
A document in which the architect and the site manager confirm that the building has been completed in line with the project and the building permit. It is the basis for the licencia de primera ocupación.
When you will come across itFor a developer project, shortly before the keys are handed over.
- Cheque bancariobanker's cheque
A cheque for the balance of the purchase price, issued by your Spanish bank and handed to the seller at the notary. The money therefore needs to be in your Spanish account in good time.
When you will come across itWhen the deed of sale is signed at the notary, mainly for a resale property.
- Comunidad de propietarioscommunity of owners
All the owners in a building or an urbanisation. It manages the common areas, such as pools, gardens, lifts or security, and approves the budget and the level of fees. Since April 2025 it can restrict or ban new short-term tourist rentals by a three-fifths majority.
When you will come across itBefore you buy, it is worth knowing the statutes, the fees and any planned repairs. If you want to rent the property out, the community's rules also matter.
- Contrato de reservareservation contract
The first written step of the purchase, in which you pay a reservation deposit and the property is taken off the market for other buyers. For a resale property the deposit usually goes into the lawyer's account, from €6,000 up to about 1% of the price, and is refunded if the checks turn up a problem. For a developer project it goes to the developer, usually €6,000 to €12,000, is refunded in full if the problem lies with the developer and counts towards the first payment. If you change your mind, it is forfeited in full or in part, depending on the developer's terms.
When you will come across itAs soon as you have chosen the property.
- Contrato privado de compraventaprivate purchase contract
For a developer project, the contract with the developer setting out the description of the property, the payment schedule and the completion date. When it is signed, you pay up to 30% of the price, including the reservation. You pay the rest at the notary once the building is finished.
When you will come across itAfter the reservation, once the lawyer has checked both the contract and the developer. If no ground has been broken yet, construction takes about 24 months from the building permit. A project that is already under construction may be ready in a few months.
- Cuota de comunidadcommunity fee
A regular contribution to the running and upkeep of the common areas. Usually about €150 to €600 a month, and in exceptional urbanisations as much as €1,000 to €1,500 for penthouses.
When you will come across itEvery month or quarter for as long as you own the property. You know the amount in advance from the listing.
- CUPS (Código Universal del Punto de Suministro)supply point code
A unique code for an electricity or gas supply point. You will find it on every energy bill, and it is used to transfer the contract to the new owner.
When you will come across itAfter the purchase, when the utilities are transferred to your name.
D
- Declaración responsable de ocupacióndeclaration of fitness for occupation
- Derramaspecial levy of the community of owners
A one-off payment that the community of owners votes for on top of the regular fees, for example to repair the roof, the façade or the pool.
When you will come across itBefore buying a resale property, it is worth finding out whether one has already been approved and agreeing clearly in the purchase contract who will pay it.
E
- Empadronamientoregistration as a resident of the municipality
See Padrón municipal.
- Entrega de llaveshandover of the keys
The moment the purchase is completed. You pay the balance, sign the deed of sale at the notary and receive the keys. For a developer project the handover is preceded by an inspection of the property, and after you take it over we draw up a list of defects covered by the warranty. For a resale property we check on the morning of the signing that the condition and contents match what was agreed.
When you will come across itAt the end of the purchase. We carry out the checks with you whenever you wish, at no extra charge.
- Escritura pública de compraventanotarial deed of sale
The purchase contract drawn up and signed before a notary, by which ownership passes to you. After signing, it is entered in the Registro de la Propiedad.
When you will come across itAt the end of the purchase. We attend the notary together with the lawyer, and you only need to come if you wish. Otherwise the lawyer signs on your behalf under a power of attorney.
G
- Gestoríaadministrative agency
An office that handles official paperwork for you, such as tax returns, transfers and registrations with the authorities.
When you will come across itMainly after the purchase, for example for the annual Modelo 210 return.
I
- IBI (Impuesto sobre Bienes Inmuebles)property tax
An annual municipal tax paid by whoever owns the property on 1 January. It is calculated from the cadastral value. Unpaid IBI passes with the property to the new owner, which is why proof of payment is checked before signing.
When you will come across itEvery year for as long as you own the property.
- ITP (Impuesto sobre Transmisiones Patrimoniales)property transfer tax
The tax paid by the buyer of a resale property. In Andalusia it is 7%. It is charged on the purchase price, or on the valor de referencia if that is higher.
When you will come across itAfter the deed of sale for a resale property has been signed at the notary.
- IVA (Impuesto sobre el Valor Añadido)VAT
When you are the first buyer of a residential property from a developer, you pay VAT 10% plus stamp duty (AJD) 1.2%. VAT is also paid on every deposit. Every later sale is exempt from VAT, and ITP is paid instead.
When you will come across itFor a developer project, with every payment.
L
- Licencia de obrabuilding permit
The municipality's permission to build. From the moment it is issued, the developer must cover buyers' deposits with a bank guarantee or insurance.
When you will come across itFor a developer project. The construction period, about 24 months if building has not yet started, is also counted from the date the permit is issued.
- Licencia de primera ocupación (LPO)first occupation licence
Confirmation from the municipality that the finished building matches the permit and is fit to live in. Until it is issued, the property is not legally in order, and energy and water suppliers will not usually give you a permanent contract. In Andalusia, for new buildings since the end of 2021 (the LISTA law), it can be replaced by a declaración responsable de ocupación, which the developer submits to the municipality.
When you will come across itFor a developer project, before the keys are handed over. For older properties, the lawyer checks it.
M
- Metros construidos / metros útilesbuilt area and usable area
Metros útiles is the floor area you actually walk on inside. Metros construidos adds the walls and often a share of the common areas as well. Terraces are counted separately, and listings usually quote the higher of the two figures.
When you will come across itWhen comparing listings. Always compare the same figure.
- Modelo 210non-resident tax return
A return for owners who are not tax resident in Spain. It is filed every year, even if you do not rent the property out, because so-called deemed income derived from the cadastral value is taxed. The rate for EU citizens is 19%; rental income is declared on the same form.
When you will come across itEvery year, for the previous year, by the end of December at the latest.
N
- NIE (Número de Identidad de Extranjero)foreigner's identification number
Without it you cannot buy a property, sign a contract at the notary, pay taxes or set up energy contracts. Your lawyer arranges it for you under a power of attorney, and it is charged separately.
When you will come across itRight at the start of the purchase, ideally before the reservation.
- NIF (Número de Identificación Fiscal)tax identification number
The general term for a tax number in Spain. For foreign individuals it is the NIE, while companies have their own NIF.
When you will come across itMainly when you buy through a company.
- Nota simpleLand Registry extract
A short extract from the Registro de la Propiedad that shows who owns the property, its area and whether a mortgage or any other charge is registered against it. It is ordered online and is valid as of its date of issue.
When you will come across itBefore the reservation, when the property is checked, and again just before signing.
- Notarionotary
A public official appointed by the state. The notary draws up the deed of sale, checks the documents of both the buyer and the seller and reads the deed out before it is signed. The notary is not responsible for the condition of the property or its legal history, which is checked by the lawyer. Notary fees are set by an official state scale.
When you will come across itWhen the deed of sale is signed, and for a power of attorney signed in Spain.
P
- Padrón municipal (empadronamiento)municipal register of residents
Registration as a resident at the town hall (ayuntamiento) of the municipality where you live. The certificate that confirms it is called the certificado de empadronamiento.
When you will come across itWhen you want to live here. Among other things, you need it to register with the public health service and to enrol children at school.
- Plusvalía municipalmunicipal tax on the increase in land value
A tax on the increase in the value of the land over the period of ownership, payable when the property is sold. It is paid by the seller, not the buyer.
When you will come across itWhen you one day sell your property.
- Poder notarialnotarial power of attorney
A power of attorney authorising a lawyer to arrange your NIE, bank account and signatures on your behalf. You can sign it before a notary in Spain or in your home country. A document signed abroad then also needs an apostille and, where required, a sworn translation.
When you will come across itFor a resale property it must be ready before the deed of sale is signed at the notary, and for a developer project sometimes even before the private purchase contract.
- Primera líneafrontline
A frontline beach property (primera línea de playa) has no other buildings between it and the beach or the promenade. In the same way, there is also frontline golf (primera línea de golf).
When you will come across itIn listings for properties by the sea and on golf courses. Frontline locations are among the most sought after on the whole coast.
- Promoción (obra nueva)developer project
A property from a developer, either under construction or already completed. You pay VAT 10% and stamp duty 1.2%. For a project under construction, up to 30% is paid with the private purchase contract and the rest at the notary.
When you will come across itMost of our clients buy an apartment in a developer project.
R
- Referencia catastralcadastral reference
The twenty-character code under which the property is recorded in the catastro. You will find it in the purchase contract, on the IBI receipt and in the nota simple.
When you will come across itWhen the property is checked, for taxes and when transferring the utilities.
- Registro de la PropiedadLand Registry
The public register of ownership and of charges such as mortgages or easements. After the deed of sale has been signed at the notary, the new owner is entered in it, and only this entry protects you against third parties.
When you will come across itBefore the purchase (nota simple) and after signing at the notary.
- Registro de Turismo de Andalucía (RTA)Andalusian tourist accommodation register
The register in which every apartment or house let to tourists for short stays (VUT) must be entered. The registration number has to be shown in every listing on Airbnb or Booking.
When you will come across itBefore you start renting short term. Beforehand we check whether the municipality and the community of owners allow it at that address.
S
- Segunda manoresale property
A property bought from its current owner. You pay transfer tax (ITP) of 7%. The process runs from the reservation through the arras contract to signing at the notary, and the whole purchase takes around two months.
When you will come across itWe mainly recommend resale properties on the first and second line by the sea, where new projects are built only very rarely.
- Seguro decenalten-year structural insurance
Compulsory insurance against defects in the load-bearing structure of new residential buildings, meaning the foundations, columns, floor slabs and load-bearing walls. It does not end when the property is sold, so it also covers later owners. In addition, the law sets three years for defects in installations and one year for finishing work. All of these periods run from the handover of the building.
When you will come across itFor a developer project and for properties less than ten years old.
- SES.HOSPEDAJESguest reporting to the Ministry of the Interior
A system run by the Spanish Ministry of the Interior to which the host must report the details of every guest for every stay. The obligation lies with the host, not the platform.
When you will come across itWith short-term rentals. As part of our rental management, we file the reports for you.
- Soláriumroof terrace
A terrace on the roof that belongs to your property alone. You will find one mainly with penthouses and townhouses, and listings often add it to the floor area.
When you will come across itBefore you buy, it is worth checking that the terrace legally belongs to your property and that any pergola or other structure on it has a permit.
T
- Traductor juradosworn translator
A translator appointed by the Spanish Ministry of Foreign Affairs, whose translations the authorities accept as official.
When you will come across itFor documents that are not in Spanish, for example a power of attorney signed in the Czech Republic or Slovakia.
U
- Urbanizaciónresidential estate
A residential development built to a single plan, often gated, with gardens and pools and sometimes with security or a golf course. How well an urbanisation is equipped and managed determines the level of community fees and its rules, for example on renting.
When you will come across itWith most apartments and villas on the Costa del Sol.
V
- Valor de referenciareference value of the property
A value that the cadastre has set every year since 2022 for every property, based on actual sales in the area. If it is higher than the purchase price, transfer tax (ITP) is charged on it instead.
When you will come across itFor a resale property, when the transfer tax is calculated.
- VUT (vivienda con fines turísticos)tourist rental in Andalusia
The Andalusian category for an apartment or house let to tourists for short stays. It must be entered in the Registro de Turismo de Andalucía and meet the required standard of equipment, and neither the municipality nor the community of owners may prohibit the rental.
When you will come across itIf you want to rent out your property while you are not using it. We check this before you buy.