This glossary explains the Spanish property terms, legal language, tax vocabulary, and registry terminology commonly used when buying property in Spain. It is designed for buyers researching villas, apartments, and investment property on the Costa Blanca and helps explain the language used throughout the Spanish property purchase process.
When buying property in Spain, buyers regularly encounter terms such as Arras Contract, Escritura de Compraventa, Nota Simple, Registro de la Propiedad, Catastro, ITP, IVA, and NIE. Understanding these Spanish real estate terms helps buyers review contracts, follow legal due diligence, and complete the transaction with more confidence.
This glossary focuses on terms commonly used in Costa Blanca real estate transactions, including Alicante Province and the Valencian Community.
Legal and Registry Terms
Arras Contract (Contrato de Arras)
An Arras Contract is a reservation agreement used in Spain in which the buyer pays a deposit to secure the property before completion. This contract usually records the agreed purchase price, the deposit amount, and the legal consequences if either party withdraws from the transaction.
Escritura Pública
An Escritura Pública is the public deed signed before a Spanish notary. In a property transaction, it forms part of the formal legal documentation used to certify the transfer of ownership.
Nota Simple
A Nota Simple is a Land Registry extract in Spain that shows the current owner of a property together with registered charges, mortgages, or legal encumbrances. Buyers use the Nota Simple during due diligence to confirm ownership and identify title issues.
Registro de la Propiedad
The Registro de la Propiedad is the official Spanish Land Registry where property ownership and registered rights are recorded. It provides legal traceability of title and is a key part of the Spanish property purchase process.
Catastro
The Catastro is Spain’s cadastral register. It records property characteristics such as size, boundaries, land use, and cadastral valuation. Buyers often compare Catastro data with the Escritura and Land Registry records to identify discrepancies.
Licencia de Primera Ocupación (LPO)
A Licencia de Primera Ocupación, often shortened to LPO, is the First Occupancy Licence issued for a new build once the property is considered fit for occupation under the relevant planning framework.
Cédula de Habitabilidad
A Cédula de Habitabilidad is a certificate of habitability used in some parts of Spain to confirm that a property meets the requirements for residential occupation. It is not always required in the Valencian Community, so buyers should confirm the position locally.
Professional Roles
API (Agente de la Propiedad Inmobiliaria)
An API is a recognised real estate professional in Spain. In Costa Blanca transactions, API status signals regulated professional activity within the Spanish property sector.
RAICV
RAICV is the Registro de Agentes de Intermediación de la Comunidad Valenciana, the Valencian registry of real estate intermediaries. Registration helps identify professionals operating within the regional real estate framework of the Valencian Community.
COAPI Alicante
COAPI Alicante is the professional association of API agents in Alicante. It forms part of the professional and regulatory framework relevant to real estate activity in Alicante Province.
Notario (Notary)
A Notario is a public official in Spain who certifies legal acts, contracts, and deeds. In a property purchase, the notary oversees the formal execution of the deed of sale and verifies the identity and legal capacity of the parties.
Gestor Administrativo (Gestoría)
A Gestor Administrativo, often referred to as a Gestoría, is an administrative professional who handles paperwork, tax submissions, and registry filings in Spain.
Abogado (Lawyer)
An Abogado is a lawyer who advises on contracts, legal due diligence, ownership issues, and disputes. Independent legal advice is one of the main protections available to foreign buyers purchasing property in Spain.
Financial and Tax Terms
ITP (Impuesto de Transmisiones Patrimoniales)
ITP is the transfer tax usually payable on resale property purchases in Spain. The applicable rate depends on the region and the nature of the transaction.
IVA (Impuesto sobre el Valor Añadido)
IVA is Value Added Tax and usually applies to new build property purchases in Spain rather than resale homes.
AJD (Actos Jurídicos Documentados)
AJD is stamp duty payable on certain notarised acts and mortgage-related documents in Spain. It commonly appears in new build or financed transactions.
IBI (Impuesto sobre Bienes Inmuebles)
IBI is the annual local property tax payable to the relevant town hall. It is one of the recurring ownership costs buyers need to budget for after completion.
Plusvalía Municipal
Plusvalía Municipal is a local tax based on the increase in land value recorded for municipal purposes when a property is sold. Liability depends on the transaction structure and local rules.
Wealth Tax (Impuesto sobre el Patrimonio)
Wealth Tax is an annual tax that may apply to assets above certain thresholds in Spain. The exact position depends on residency, region, and asset profile.
IRNR (Impuesto sobre la Renta de No Residentes)
IRNR is the income tax regime for non-residents in Spain. It can apply to rental income and, in some cases, imputed income from property ownership.
Contracts and Ownership
Contrato de Compraventa
A Contrato de Compraventa is a private purchase contract signed before formal completion. It records the terms agreed by buyer and seller before the transaction is executed in the public deed.
Contrato de Arrendamiento
A Contrato de Arrendamiento is a rental agreement. It may apply to short-term or long-term occupation depending on the use of the property and the legal framework governing the tenancy.
Escritura de Compraventa
An Escritura de Compraventa is the deed of sale used to transfer ownership of a property in Spain. It is signed before a notary and forms the basis for registration in the Land Registry.
NIE (Número de Identificación de Extranjero)
An NIE is the tax identification number issued to foreigners in Spain. It is required for property purchases, tax payments, and many legal and administrative procedures.
Poder Notarial (Power of Attorney)
A Poder Notarial is a Power of Attorney that authorises another person to act on someone’s behalf in a property transaction. It is commonly used when the buyer cannot attend completion in person.
Embargo
An Embargo is a legal charge or encumbrance registered against a property due to debts or enforcement action. Buyers should identify any embargoes during due diligence before proceeding.
Hipoteca
A Hipoteca is a mortgage registered against a property in Spain. It appears in Land Registry records and may need to be discharged or accounted for before ownership is transferred cleanly.
Planning and Construction
Licencia de Obra
A Licencia de Obra is the building permit required for construction, extension, or significant renovation works in Spain. Buyers should check whether relevant works were properly authorised.
Certificado Energético
A Certificado Energético is the Energy Performance Certificate required when selling or renting a property in Spain. It records the property’s energy efficiency rating.
Urbanización
An Urbanización is a planned residential development with shared infrastructure and, in some cases, common elements and community rules. Buyers should review any statutes or community obligations affecting the property.
Vivienda Turística (VT Licence)
A Vivienda Turística, often referred to as a VT Licence, is the tourist rental licence used in the Valencian Community for short-term holiday accommodation. It forms part of the legal framework for holiday rentals in Costa Blanca and Alicante Province.
Finca Urbana
Finca Urbana refers to urban land or urban property classification in Spain.
Finca Rústica
Finca Rústica refers to rural land classification in Spain. This distinction affects planning, permitted use, and development potential.
Frequently Asked Questions About Spanish Property Terms
What are the most important Spanish property terms to understand before buying?
The most important terms usually include Arras Contract, Escritura de Compraventa, Nota Simple, NIE, ITP, IVA, and Catastro. These appear repeatedly during the Spanish property purchase process and affect reservation, tax, ownership transfer, and legal due diligence.
What is the difference between the Registro de la Propiedad and the Catastro?
The Registro de la Propiedad records legal ownership and registered rights, while the Catastro records physical and fiscal property data such as size, boundaries, and cadastral valuation. Buyers should compare both records as part of due diligence.
Do foreign buyers need an NIE to buy property in Spain?
Yes. Foreign buyers need an NIE to complete a property purchase in Spain because it is required for tax and legal identification purposes.
What taxes apply when buying property in Spain?
The most common purchase taxes are ITP for resale properties and IVA plus, in some cases, AJD for new builds. Ongoing ownership costs may also include IBI and other tax obligations depending on the buyer’s status and use of the property.
Why is a Nota Simple important?
A Nota Simple helps confirm who owns the property and whether mortgages, embargoes, or other charges are registered against it. It is one of the most important documents reviewed during Spanish property due diligence.
What is an Arras Contract in Spain?
An Arras Contract, or Contrato de Arras, is a reservation agreement used in Spain in which the buyer pays a deposit to secure the property before completion. It usually records the purchase price, deposit amount, and the legal consequences if either party withdraws.
What is an Escritura de Compraventa?
An Escritura de Compraventa is the deed of sale used to transfer ownership of a property in Spain. It is signed before a notary and forms the basis for registration in the Land Registry.
What is a Vivienda Turística or VT Licence?
A Vivienda Turística, often referred to as a VT Licence, is the tourist rental licence used in the Valencian Community for short-term holiday accommodation. It forms part of the legal framework for holiday rentals in Costa Blanca and Alicante Province.
