Spanish property terms: a glossary for buyers in Spain

Buying property in Spain introduces a set of legal, fiscal, and administrative terms that have no direct equivalent in English. Some of them — like escritura or catastro — appear in almost every transaction. Others, like nuda propiedad or plusvalía, come up in specific situations. Knowing what they mean before you encounter them in a contract or conversation makes the process considerably less daunting.

This glossary is organised by the stage of the buying process at which each term typically appears. For a full overview of how the process works from start to finish, the step-by-step guide to buying property in Spain covers each stage in detail.

Before you buy: identification and legal preparation

These are the terms you will encounter before you have even found a property — during the preparation and legal setup phase.

NIE — Número de Identidad de Extranjero  —  foreigner identification number

The NIE is a tax identification number issued to all foreign nationals in Spain. You cannot sign any contract, pay any tax, or complete a property purchase without one. Applying for an NIE early in the process is essential — it can take several weeks. Everything you need to know about the NIE, including how to apply from abroad, is covered in a separate guide.

Abogado  —  property lawyer

A qualified lawyer registered with a regional bar association (Colegio de Abogados). For property purchases, an abogado carries out legal due diligence, reviews contracts, checks the Land Registry, and protects your interests throughout the transaction. Engaging one before signing anything is strongly advisable. The difference between an abogado and a gestor — and when you need each one — is explained in a separate guide.

Gestor / Gestoría  —  administrative agent / administrative services firm

A gestor is a licensed administrative professional who handles official paperwork on your behalf — NIE applications, tax filings, vehicle registrations, and similar tasks. A gestoría is the firm they work in. In property transactions, the gestoría typically handles the payment of transfer tax and the registration of the title deed after completion. They are distinct from a lawyer: a gestor handles known administrative processes; a lawyer handles legal risk and contracts.

Poder Notarial  —  power of attorney

A legal document by which you authorise another person — typically your lawyer — to act on your behalf in a specific matter. In property transactions, a poder notarial is commonly used to allow your lawyer to sign the escritura at the notary on your behalf if you cannot be present in Spain on the completion date. It must be signed before a notary to be valid.

Finding a property: what you will see in listings

These terms appear regularly in property listings and descriptions.

Metros Construidos  —  built area

The total surface area of a property, including all structural elements — walls, partitions, and non-habitable spaces such as stairwells. Built area is typically larger than usable area and is the figure most commonly cited in property listings. Always check whether a listing states built area or usable area, as the difference can be significant.

Metros Útiles  —  usable area

The actual liveable floor space within a property — the area you can walk on and use, excluding walls and structural elements. Usable area is typically 15% to 20% lower than built area. When comparing properties, ensure you are comparing like for like.

Vivienda de Obra Nueva  —  new-build property

A property being handed over for the first time and not previously owned or inhabited. New-build properties are subject to IVA (VAT at 10%) rather than ITP (transfer tax). Some heavily renovated or previously rented properties may also be classified as new-build for tax purposes — your lawyer can advise on the specific classification.

Finca Rústica / Finca Urbana  —  rural land / urban land

A finca rústica is land classified as rural or agricultural — not intended for residential construction under standard planning rules. A finca urbana is land or property classified as urban, with residential or commercial use permitted. The distinction is critical: rural land has significant restrictions on building, and illegal constructions on finca rústica are common in some parts of Spain. Always verify the land classification with your lawyer before purchase.

Contracts and deposits

These are the terms you will encounter once you have found a property and are moving towards commitment.

Reserva  —  reservation deposit

A small holding deposit — typically €3,000 to €6,000 — paid to take a property off the market while legal checks are carried out. The reserva is usually paid before the contrato de arras and is a relatively informal commitment. Always have your lawyer review any reserva agreement before signing or paying.

Contrato de Arras  —  pre-sale contract / deposit contract

The main private contract between buyer and seller, signed once the legal checks are underway. When you sign the contrato de arras, you typically pay a 10% deposit directly to the seller. If you withdraw, you lose the deposit. If the seller withdraws, they must repay you double. There is no automatic cooling-off period and no automatic mortgage clause — both must be negotiated explicitly. How the contrato de arras works, including the different types and what to watch out for, is explained in full in a separate guide.

Contrato de Compraventa  —  private purchase agreement

A private contract between buyer and seller that sets out the full terms and conditions of the sale — price, property description, completion date, and any conditions. While legally binding, this document cannot be registered in the Land Registry on its own. It must be converted into a public deed (escritura) before a notary to transfer legal ownership formally.

Due diligence: checking the property

These are the terms your lawyer will use when carrying out checks on the property before you commit.

Registro de la Propiedad  —  Land Registry

The official public registry where property ownership and any charges, mortgages, or liens registered against a property are recorded. Your lawyer will search the Registro de la Propiedad to confirm the seller's legal ownership and identify any outstanding debts before you sign the contrato de arras. Note: the Registro de la Propiedad is not the same as the Catastro — they are two separate institutions with different purposes.

Catastro  —  cadastral registry

The official administrative registry managed by the Spanish tax authorities that records and describes all real estate for fiscal purposes. The Catastro assigns each property a referencia catastral (cadastral reference number) and a valor catastral (cadastral value), which is used to calculate property taxes such as IBI. The Catastro is used for tax administration; the Registro de la Propiedad is the register of legal ownership. The two do not always match — discrepancies in recorded floor area or boundaries are common and should be flagged by your lawyer.

Valor Catastral  —  cadastral value

The official administrative value assigned to a property by the Catastro. It is used to calculate several property taxes, including IBI (annual property tax) and, in some cases, ITP (transfer tax). The cadastral value is typically 30% to 50% lower than the market value of the property. You can find your property's cadastral value on any previous IBI bill or via the Catastro online portal.

Nota Simple  —  Land Registry extract

A document issued by the Registro de la Propiedad that summarises the key legal information about a registered property: who owns it, its registered description, and any charges, mortgages, or liens recorded against it. The nota simple is one of the first documents your lawyer will request when carrying out due diligence, and you can also request one yourself online from the Registro de la Propiedad. A full list of the documents to request before purchasing is covered in our guide to 10 documents to request from the seller before buying a property in Spain.

Cargas y Gravámenes  —  encumbrances and liens

Cargas (encumbrances) are any obligations or liabilities that affect a property and may restrict its use or disposal — including mortgages, usufruct rights, or pending legal claims. Gravámenes (liens) are a specific type of encumbrance where the property is used as collateral for a debt, granting the creditor the right to reclaim the property if the debt is not repaid. Your lawyer will check the nota simple for any cargas or gravámenes before you proceed.

Cédula de Habitabilidad  —  certificate of habitability

An official certificate confirming that a property meets the minimum legal requirements to be used as a residential dwelling. It is mandatory in Catalonia and several other autonomous communities, and is required to connect utilities and, in some cases, to obtain a mortgage. If a property does not have a valid cédula de habitabilidad, it may not legally be habitable.

Certificado de Eficiencia Energética  —  energy performance certificate

A mandatory document that rates the energy efficiency of a property on a scale from A (most efficient) to G (least efficient). Sellers are legally required to provide this certificate. A low rating means higher utility costs — relevant both for personal use and for rental potential.

Taxes and costs

These are the fiscal terms that determine what you will pay at completion and as an ongoing owner.

ITP — Impuesto sobre Transmisiones Patrimoniales  —  property transfer tax

The main tax payable when buying a resale (second-hand) property in Spain. ITP is paid by the buyer and is calculated as a percentage of the purchase price. Rates are set by each autonomous community and typically range from 6% to 11% depending on the region. It must be paid within 30 days of signing the escritura.

IVA — Impuesto sobre el Valor Añadido  —  VAT

VAT applies to new-build properties instead of ITP, at a standard rate of 10% for residential properties. Commercial properties attract 21% IVA. New-build purchases also attract stamp duty (AJD) in addition to IVA.

AJD — Impuesto sobre Actos Jurídicos Documentados  —  stamp duty / tax on documented legal acts

A tax applied to notarial documents, including the deed of sale and the mortgage deed. AJD applies to both resale and new-build purchases, though it is typically most significant in new-build transactions where it is paid alongside IVA. Rates vary by autonomous community, generally between 0.5% and 1.5% of the purchase price.

IBI — Impuesto sobre Bienes Inmuebles  —  annual property tax

The annual municipal property tax paid by all property owners in Spain, resident and non-resident alike. It is calculated as a percentage of the cadastral value and set by the local ayuntamiento. Rates typically range from 0.4% to 1.1% of the cadastral value. IBI is paid once a year, usually between August and November.

Plusvalía  —  municipal capital gains tax

A municipal tax paid by the seller on the increase in the land value of a property during their period of ownership. It is calculated on the cadastral value of the land (not the building) and the number of years owned. If you are buying, you are not liable for plusvalía — but it is worth checking that the seller has paid any outstanding plusvalía before completion, as unpaid charges can affect the property.

Base Imponible  —  taxable base

The amount to which a tax rate is applied to calculate the tax due. In ITP, the taxable base is the agreed purchase price. In IBI, it is the cadastral value. Understanding the taxable base for each tax helps you calculate your total purchase costs accurately.

Completion: the final stage

These are the terms you will encounter on or around the day you complete your purchase.

Notario  —  notary

A public official appointed by the Spanish state to authenticate legal documents and verify the identity of the parties to a transaction. In a property purchase, the notary draws up and authenticates the escritura, reads it aloud to both parties, and ensures all legal requirements are met. The notary does not advise either party — they are a neutral public official. Engaging your own lawyer is the only way to ensure someone is working exclusively in your interest.

Escritura Pública de Compraventa  —  public deed of sale

The official document that formalises the transfer of a property's ownership. It is drawn up by the notary, signed by both buyer and seller (or their representatives), and contains the full details of the transaction: parties, property description, agreed price, and payment terms. Once signed and the relevant taxes paid, the escritura must be registered with the Registro de la Propiedad to complete the transfer of legal ownership.

Cheque Bancario  —  banker's cheque

Payment at completion in Spain is typically made by banker's cheque drawn on a Spanish bank, handed over on the day of signing the escritura. Some transactions also use bank transfer, with the method confirmed by your lawyer in advance. Either way, funds must be available in a Spanish bank account before the signing appointment — allow sufficient time for international transfers to clear.

Gestoría (at completion)  —  administrative agent

After signing the escritura, the gestoría handles the payment of transfer tax (ITP or IVA), the registration of the deed at the Registro de la Propiedad, and any other associated paperwork. The registered escritura is then returned to you — typically within four to eight weeks of completion.

Ownership concepts

These terms relate to the structure of property ownership and are most commonly encountered in inheritance, family arrangements, or specialist purchase situations.

Nuda Propiedad  —  bare ownership

The right of ownership of a property without the right to use or enjoy it. A bare owner holds the legal title but cannot live in or benefit from the property while a usufruct is in place. Bare ownership is sometimes sold separately from the right of use — most commonly in inheritance or estate planning arrangements.

Usufructo  —  usufruct / right of use

The right to use and enjoy a property without owning it outright. A usufructuary can live in the property, rent it out, and receive income from it — but cannot sell the bare ownership. Usufruct rights are most commonly encountered in inheritance situations, where a surviving spouse may hold the usufruct of a property while children hold the bare ownership.

Using this glossary

The terms above cover the most common situations in a standard Spanish property purchase. For more complex transactions — inheritance, new-build off-plan purchases, or properties with planning issues — additional specialist terminology may apply. The complete costs of buying and moving to Spain covers the financial side in full, and our guides on finance, legal matters, and taxes go deeper into specific topics.