Glossary of Spanish Property Terms

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Stamp duty payable on the deed when buying a new build from a developer, set by the regional government.

Bank guarantee. For off-plan purchases, payments before completion must be covered by a bank guarantee or insurance policy.

The Spanish land and property cadastre, which records the physical description and cadastral value of each property.

The owners’ community of a development, which manages and pays for communal areas through community fees.

Reservation agreement that takes a unit off the market against a deposit.

Private purchase contract signed after reservation, setting price, payment schedule, completion date and specifications.

The public deed of sale signed before a notary at completion.

Annual municipal property tax.

Transfer tax on resale (second-hand) properties. Not payable on a new build bought from the developer, which pays VAT instead.

Spanish VAT. Applies to new builds bought from a developer (10% on residential property).

First-occupation licence (or the equivalent declaration) confirming a completed building can be lived in.

Número de Identidad de Extranjero – the identification number foreigners need to buy property in Spain.

An extract from the Land Registry showing the owner and any charges registered against a property.

Notary – a public official who formalises the deed of sale.

Municipal tax on the increase in land value, normally paid by the seller.

Land Registry, where ownership and charges are recorded.