Reference · Spanish property vocabulary
Spanish Mortgage and Property Terms Explained
Buying in Spain means reading documents written in a vocabulary that has no exact English equivalent. This glossary defines the terms a foreign buyer actually meets — in the reservation contract, in the bank's offer, at the notary and on the tax bills afterwards — with the English equivalent where one exists and a note on why each matters.
- 46 terms defined
- Written for foreign buyers
- Linked to full guides
Categories
A note on how to use this. Spanish conveyancing terms are not translations of English ones — an escritura is not quite a title deed and a notario is not a solicitor. Where the English equivalent is only approximate, the definition says what the Spanish document or office actually does. Nothing here is legal or tax advice; for your own purchase, take it from a Spanish lawyer.
The purchase
Reserva
Reservation agreement
The first document in most Spanish purchases: a short agreement, usually signed with the estate agent, under which you pay a modest sum to take the property off the market for a fixed period while checks are made. It is not the main contract, and the money is often held by the agent rather than the seller. Have your lawyer read it before you pay anything, because the terms on which the reservation fee is refundable vary widely.
Arras (contrato de arras)
Deposit contract
The private purchase contract signed between reservation and completion, accompanied by a deposit — most commonly around 10% of the price. In its usual form, arras penitenciales, a buyer who walks away forfeits the deposit and a seller who walks away repays double. Do not sign one before you know your mortgage is realistic, because the money at risk is yours. How the timeline works →
Escritura pública
Public deed of sale
The deed signed in front of a notary that transfers ownership, and the document from which the land registry entry is made. Until the escritura is signed and the price paid, the property is not yours, whatever the private contract says. If you have a mortgage, a separate mortgage deed is signed at the same appointment. What happens at the notary →
Notario
Notary
A public official who witnesses the deed, verifies the identity and capacity of the parties, checks the registry position immediately before signing, and reports the sale to the registry and the tax authorities. The notary is neutral — they act for the transaction, not for you — which is why you also need your own lawyer. Full guide →
Gestoría
Administrative processing agency
A firm that handles the paperwork after signing: paying the purchase taxes, lodging the deed at the land registry and returning the registered title. Where there is a mortgage the lender normally appoints the gestoría, and its fee appears on your completion statement.
Poder notarial
Power of attorney
A notarised authority allowing someone — usually your Spanish lawyer — to sign on your behalf, including the deed and the mortgage. It can be granted in Spain before a Spanish notary, or abroad before a local notary with an apostille and a sworn translation. Arrange it early if travelling to the signing is uncertain. Full guide →
Tasación
Mortgage valuation
The formal valuation of the property carried out by a valuation company approved by the Banco de España, on which the bank's lending is based. You pay for it, typically €300–600, and the lender lends a percentage of this figure rather than of the price you agreed. Valuations are usually valid for six months. Full guide →
Segunda mano
Resale property
A property being sold other than for the first time by a developer. Resales attract transfer tax rather than VAT — in Andalucía, 7% — and total purchase costs usually land around 9–11% of the price on top of your deposit. Full cost breakdown →
Obra nueva
New build
A newly built property sold for the first time by its developer. New builds are taxed differently from resales — 10% IVA plus 1.2% AJD in Andalucía — so budget nearer 12–14% in costs. Where the property is still under construction, payments are staged. Buying off-plan →
Finca
Registered property unit
The unit of property as the land registry sees it, each with its own finca number: an apartment, a house, a plot, a garage space. In everyday speech it also means a country property. What matters when buying is that every element you think you are buying — the parking space, the storeroom, the plot — appears in the registry, either as part of your finca or as a separate one you are also acquiring.
Legal and registry
Registro de la Propiedad
Land registry
The public register of property ownership and charges, organised by district. Registration is what makes your ownership enforceable against third parties, and a mortgage is only fully effective once the mortgage deed is registered. The register is the authoritative record of who owns what and what is secured against it.
Nota simple
Land registry extract
A one- or two-page extract from the Registro de la Propiedad showing who owns a property, its registered description and surface area, and any charges or mortgages against it. Your lawyer and your lender will both want one, and it is the cheapest and fastest way to check that the person selling is the person on the register. Full guide →
Cargas
Charges and encumbrances
Anything registered against a property that restricts or burdens it: an existing mortgage, an embargo for unpaid debt, a right of way, a lease. Cargas travel with the property rather than the seller, so they must be cleared or discharged at completion. They appear on the nota simple, which is why it is read before anything is signed.
Catastro
Cadastre, the tax-side property register
A separate register maintained for tax purposes, recording each property's physical description, boundaries and valor catastral — the administrative value used to calculate IBI and other taxes. It is not proof of ownership; the land registry is. Discrepancies between catastro and registry descriptions are common and need resolving, particularly on rural property and where extensions have been built.
NIE (Número de Identidad de Extranjero)
Foreigner identification number
The tax and identity number every foreign buyer needs before completing a purchase in Spain. You cannot sign the deed, pay the purchase taxes, register the property or complete a mortgage without one. Applications are made at a Spanish police station or through a Spanish consulate, and it is the single item most likely to delay a completion if left late. How to get an NIE →
Cédula de habitabilidad
Certificate of habitability
A municipal certificate confirming that a dwelling meets minimum standards for habitation. It is required in some regions to connect utilities and to let the property, and lenders may ask to see it. In Andalucía its role is largely filled by the first occupation licence, but the term is still used on the coast by agents and utility companies.
Licencia de primera ocupación
First occupation licence
The town hall's certificate that a newly built property was built in accordance with its planning permission and may be lawfully occupied. It is needed for permanent utility connections, and lenders normally require it before releasing funds on a new build. On off-plan purchases, its absence is one of the standard reasons completion slips. Buying off-plan →
Bien inmueble
Immovable property, real estate
The legal category covering land and anything permanently attached to it, as opposed to bienes muebles, movable goods. The distinction matters at purchase because furniture and fittings sold with a property may be treated separately for tax, and because a mortgage can only be secured over the immovable part.
Okupa
Squatter
A person occupying a property without the owner's permission. Removing an occupier is a court process rather than an administrative one, and it can take time, so lenders and insurers pay attention to whether a property is standing empty. Check occupancy as part of your due diligence, especially on repossessed or long-vacant stock.
LCCI / Ley 5/2019
Spanish mortgage credit law
The Ley reguladora de los contratos de crédito inmobiliario, which governs residential mortgage lending in Spain. It requires the lender to provide a binding offer and a pre-signing visit to the notary followed by a cooling-off period, bans tying products to the loan while allowing bundled offers that must also be quoted standalone, and makes the lender pay the stamp duty and most notary and registry costs on the mortgage deed. Where it fits in the process →
Tax
Impuesto
Tax
The general word for a tax, used as the first word of most named Spanish taxes — for example impuesto sobre transmisiones patrimoniales or impuesto sobre bienes inmuebles. When a Spanish document refers simply to el impuesto, it means the tax due on that particular transaction.
ITP (Impuesto sobre Transmisiones Patrimoniales)
Property transfer tax
The tax paid by the buyer on a resale property, set by each autonomous region. In Andalucía the rate is 7%. It is payable shortly after completion and is the largest single cost of buying a second-hand home, which is why it must be budgeted as cash rather than assumed into the mortgage. Full cost breakdown →
IVA (Impuesto sobre el Valor Añadido)
Value added tax
Spanish VAT, charged instead of ITP when a property is bought new from its developer. On residential new builds the rate is 10%, and it is accompanied by AJD stamp duty at 1.2% in Andalucía. VAT is paid to the seller with the price rather than to the tax office separately.
AJD (Actos Jurídicos Documentados)
Stamp duty on notarised deeds
A documented legal acts tax charged on certain notarised, registrable deeds; in Andalucía the rate on a new build purchase deed is 1.2%. On the mortgage deed itself, AJD is paid by the lender rather than the borrower under Ley 5/2019, so it should not appear as a cost to you.
IBI (Impuesto sobre Bienes Inmuebles)
Annual local property tax
The yearly municipal tax on property ownership, calculated from the valor catastral and billed by the town hall. Lenders count it, along with community fees, in your affordability assessment, so a property with high running costs reduces what you can borrow. Check the current bill and that it is paid up before completion.
Plusvalía municipal
Municipal land value tax
A town hall tax on the increase in the value of the land, not the building, between acquisition and sale. It is normally the seller's liability, but the municipality can look to the property, so your lawyer will usually want it settled or retained at completion. Non-resident sellers should expect the buyer's side to insist on this.
IRNR (Impuesto sobre la Renta de No Residentes)
Non-resident income tax
The Spanish income tax that applies to non-residents who own property here, payable whether or not the property is let: on rental income where it is let, and on an imputed notional income where it is kept for your own use. Rates and allowable deductions depend on your country of residence and the applicable treaty, so this is a question for a tax adviser rather than for us.
The mortgage
Hipoteca
Mortgage
The security right registered over a property to guarantee repayment of a loan. In Spain the charge and the loan are distinct: the hipoteca is the security, the préstamo is the debt. The charge only takes full effect once the mortgage deed is registered at the land registry.
Préstamo hipotecario
Mortgage loan
The loan itself — the amount borrowed, its term, its rate and its repayment schedule — secured by the hipoteca. Spanish mortgages for non-residents are typically capital and interest over 20–25 years, with repayment usually required by age 70 to 75. Complete guide →
Capital
Principal, the amount borrowed
The outstanding balance of the loan, as distinct from the interest charged on it. Each monthly payment on a repayment mortgage is split between capital and intereses, with the capital share rising over the life of the loan. Overpayments are described as amortización de capital.
Cuota
Monthly instalment
The regular payment due on the mortgage, combining capital and interest. On a variable loan the cuota is recalculated when the rate is reviewed against Euribor, usually annually or half-yearly; on a fixed loan it does not change. The word is also used for the monthly community fee, so read which cuota a document means.
Euribor
Euro interbank benchmark rate
The benchmark interest rate at which European banks lend to one another, and the reference for almost every variable-rate Spanish mortgage. A variable loan is priced as Euribor plus a fixed margin, so your payment moves with the benchmark at each review while the margin stays put. Fixed or variable →
Diferencial
Margin over the index
The fixed percentage a lender adds to Euribor to arrive at your variable rate — the part of the price the bank actually sets, and the part you can negotiate. It is contractual and does not change over the life of the loan, so a lower diferencial is worth more than a temporary introductory rate.
TIN and TAE
Nominal rate and annual percentage rate
TIN (tipo de interés nominal) is the bare interest rate used to calculate your payments. TAE (tasa anual equivalente) is the annual percentage rate: it folds in fees and compounding, so it is the number to compare between offers. Where a lender discounts the rate in return for taking insurance or other products, the TAE of the bundled and unbundled versions is the honest comparison.
FEIN (Ficha Europea de Información Normalizada)
Binding mortgage offer
The standardised European information sheet that sets out the binding terms of the mortgage: amount, rate, term, instalments, total cost and conditions. Under Ley 5/2019 the lender must give it to you at least ten days before signing, and the notary checks you have understood it at the pre-signing visit. The FEIN, not a branch email, is the offer.
Subrogación
Transfer of an existing mortgage
The transfer of an existing mortgage from one party to another: either to a new lender on the same property (subrogación de acreedor), or to a new borrower taking over the existing loan (subrogación de deudor), which is how developer construction loans are often passed to off-plan buyers. Remortgaging in Spain →
Novación
Variation of an existing mortgage
A formal amendment of your existing mortgage with the same lender — changing the rate, the term, the amount or the borrowers — executed by deed and registered. It is usually the cheaper route where your current bank is willing to improve terms, and the alternative to moving the loan elsewhere. Full guide →
Banco de España
The Spanish central bank
Spain's central bank and, for these purposes, the supervisor that authorises banks, approves valuation companies and maintains the registers of credit intermediaries. Its complaints service also handles disputes with lenders once the bank's own process is exhausted.
ICI (Intermediario de Crédito Inmobiliario)
Real estate credit intermediary
The regulated category, created by Ley 5/2019, for firms that arrange mortgages between borrowers and lenders. An intermediary is either vinculado, tied to one or more named lenders, or no vinculado, independent of all of them. We are independent, and we are paid by lender commission on completion with no fee to you. How we work →
Property and building
Suelo urbano
Urban, developable land
Land classified in the municipal plan as urban: serviced, built on or buildable, and the classification under which almost all coastal apartments and villas sit. Lenders treat property on suelo urbano as ordinary security, provided the building itself is legal and registered.
Suelo rústico
Rural, non-developable land
Land classified as rural or protected, where building is restricted and existing houses may have an irregular planning status. Spanish banks lend on rural property far more cautiously, at lower loan-to-values and sometimes not at all, and the legal status of the house has to be established before a lender will look at it. If you are buying a country property, raise it at the start rather than after the offer. Rural and inland buying →
Comunidad de propietarios
Community of owners
The legal body of all owners in a building or development, responsible for the common areas and funded by a monthly fee set by its budget. Its rules can restrict short-term letting and alterations, and unpaid community debt attaches to the property for a limited period, so your lawyer will obtain a certificate that the seller is up to date.
Derrama
Special levy on owners
A one-off charge voted by the community to fund something the ordinary fees do not cover — a new lift, a roof, a repainting. Derramas can be substantial and are agreed at a general meeting, so ask for the recent minutes: a levy that has been approved but not yet billed is a cost you will inherit.
Vivienda de uso turístico
Registered holiday rental property
A dwelling let to tourists on a short-term basis, which in Andalucía must be registered with the regional tourism register and meet its requirements. Some communities of owners restrict or prohibit it. Note also that lenders will generally not count expected rental income towards affordability, so a holiday-let plan does not increase what you can borrow.
Ownership and living there
Nuda propiedad
Bare ownership
Ownership of a property stripped of the right to use or take income from it, because a usufruct is held by someone else — commonly a surviving spouse or a seller who has retained a life interest. Buying bare ownership is much harder to mortgage, because the lender's security cannot be sold with vacant possession while the usufruct lasts.
Usufructo
Usufruct, a right of use for life
The right to occupy a property and take its income without owning it, usually for the holder's lifetime, with bare ownership sitting with someone else. It is registered against the property and appears on the nota simple. A usufruct held by a third party is a charge on what you are buying, and has to be extinguished or bought out for a normal sale to proceed.
If a term you have met is not here, send it to us with the document it came from and we will tell you what it means. For how the pieces fit together in an actual purchase, start with the complete guide to Spanish mortgages for non-residents, or the non-resident mortgage FAQ.
Free assessment
Know the words. Now find out the numbers.
One short form and we will tell you which banks are likely to lend to you, at what loan-to-value, and what it will cost — before you commit to a property or pay a reservation deposit. You pay us nothing; the lender pays our commission on completion.
Start your enquiry
Takes about a minute. No obligation.
Thank you — we have your details.
We will review your profile and come back to you, usually within one working day.