Our glossary of Spanish property terms offers clear explanations of the legal, financial, and registry language you’ll encounter when buying a home or rental property on the Costa Blanca. Property law in Spain uses specific expressions drawn from contracts, registries, and tax rules, and each of them plays a role in the buying process.
The glossary shows what an Arras Contract means when you reserve a villa, how the Escritura de Compraventa transfers ownership before a notary, and why the Registro de la Propiedad and Catastro record different details. It also explains the taxes you’ll face, from ITP on resales to IVA on new builds, and the people you’ll meet, from notaries and lawyers to licensed API agents registered with RAICV and COAPI Alicante. By learning these terms, you’ll read documents with confidence and follow every step of your purchase with clarity.
Legal and Registry Terms
- Arras Contract (Contrato de Arras) – Reservation contract where the buyer pays a deposit to secure the property.
- Escritura Pública – Public deed signed before a notary.
- Nota Simple – Land Registry extract showing current ownership and charges.
- Registro de la Propiedad – Official Land Registry where ownership is recorded.
- Catastro – Cadastral register containing property size, boundaries, and valuation.
- Licencia de Primera Ocupación (LPO) – First Occupancy License required for new builds and some resales.
- Cédula de Habitabilidad – Certificate of habitability in some regions (not always required in Valencia).
Professional Roles
- API (Agente de la Propiedad Inmobiliaria) – Licensed real estate agent recognised by Spanish law.
- RAICV – Valencian Registry of Real Estate Intermediaries.
- COAPI Alicante – Professional association of API agents in Alicante.
- Notario (Notary) – Public official who certifies contracts and deeds.
- Gestor Administrativo (Gestoría) – Administrative agent handling paperwork, taxes, and registry filings.
- Abogado (Lawyer) – Legal professional who advises on contracts, due diligence, and litigation.
Financial and Tax Terms
- ITP (Impuesto de Transmisiones Patrimoniales) – Transfer tax on resale properties.
- IVA (Impuesto sobre el Valor Añadido) – VAT, applied to new builds.
- AJD (Actos Jurídicos Documentados) – Stamp duty payable on notarial acts and mortgages.
- IBI (Impuesto sobre Bienes Inmuebles) – Annual property tax payable to the local council.
- Plusvalía Municipal – Local tax on increase in land value when selling.
- Wealth Tax (Impuesto sobre el Patrimonio) – Annual tax on assets above certain thresholds.
- IRNR (Impuesto sobre la Renta de No Residentes) – Income tax for non-residents on rental or imputed income.
Contracts and Ownership
- Contrato de Compraventa – Private purchase contract signed before completion.
- Contrato de Arrendamiento – Rental agreement (short or long term).
- Escritura de Compraventa – Deed of sale transferring ownership.
- NIE (Número de Identificación de Extranjero) – Tax identification number for foreigners.
- Poder Notarial (Power of Attorney) – Authorisation to act on someone’s behalf in property transactions.
- Embargo – Encumbrance or legal charge on a property due to debts.
- Hipoteca – Mortgage registered against the property.
Planning and Construction
- Licencia de Obra – Building permit for construction or renovation.
- Certificado Energético – Energy Performance Certificate required for sale or rental.
- Urbanización – Planned residential development with shared infrastructure.
- Vivienda Turística (VT License) – Tourist rental license required in Valencia region.
- Finca Urbana / Finca Rústica – Urban plot vs rural land classification.
