The Glossary of Spanish Property Terms
The following is a glossary of terms commonly used with regards to property in Spain.
Abogado
A Spanish lawyer
A.P.I.
Estate agents accreditation (also see G.P.I.E.).
Arras Contract
Clauses inserted into a Sales contract to allow either party to break the contract prior to completion provided that certain penalties are paid.
Aval Bancario
A guarantee covering any money placed as a deposit or as stage payments against an unbuilt or unfinished property.
Boletin de instalaciones eléctricas
The certificate from the electrician once the property is complete.
Capital GainsTax
A capital gain tax is a tax paid on the profit made from a property transaction, residents pay 15% and non residents pay 35%. Profit is determined by subtracting the purchase value from the sale value
Cedula de Habitalidad
Certificate of habitation issued when a new build property is complete. Required before an apartment can be switched from the builders supply connecting for utilities.
Certificado de fin de obra
Certificate from the architect when work on the property is finished.
Declaración de obra nueva
A Declaration in the form of a notarial escritura, whereby you inscribe the house on your plot.
Community fees
Paid to the equivalent of the “residents association” to cover community costs like gardening and swimming pool maintenance.
Community of Owners
The equivalent of the “residents association” on an urbanisation.
Contrato de Compra-Venta
Sales contract alos termed as the Private Parchase Contract
Escritura
The sales transfer document and title deeds to the property that states the purchase price the property was bought for.
Fiscal Representative
Someone you appoint to keep your tax affairs in order and worth their weight in gold.
Finca
Farm or rural building plot.
Gestor
An agent - can be a property agent.
G.P.I.E.
Estate agents accreditation (also see A.P.L).
Hacienda
The tax office.
I.B.I.
Impuesto sobre Bienes Inmuebles. The equivalent of rates.
I.A.J.D.
Tax charged at 1,4% when I.V.A. is charged.
Informe urbanístico
A plan from the town hall telling you what you can build on a certain plot and relates to the 1986 Plan Parcial.
l.S.P.
Impuesto Sobre el Patrimonio or Wealth tax. Based on the value of all assets in Spain.
l.S.R.
Impuesto Sobre Ia Renta. Income tax on all second home owners in Spain and non residents for the notional letting value of the property. If the property is not let, it is calculated on the notional rental value of the property. Notional rental value calculated at 2% of the Valor Catastral. Paid at 25% by non-residents. If the property is let the tax is paid at 25% on actual rent received.
I.T.P.
Impuesto Sobre Transmisiones. Transfer tax on resale properties charged at 7% of declared purchase price.
I.V.A. VAT
Only charged on new build properties, land and commercial property.
Letting Scheme or Lease Back Guarantee
In its simplest form where you let your property for an agreed number of weeks to a management company, who sub-let it at a profit.
LRAU or Valencia Land Grab Laws
Compulsory purchase order that has caused tremendous upset in the Valencia region over the last 10 years
New Build
Off plan property
N.I.E. & N.I.F.
Tax number for residents and non-residents.
Notarised
The act of officially sealing or approving an official document in front of a public notary
Nota Simple
An extract from the Title lodged with the Land Registry declaring who is really the owner of the plot and if it is free from charges.
Offplan Property
Property that is sold from plans and is in the process of being constructed.
Public Notary
An official witness of documents like purchase contracts and mortgage deeds.
Plus Valia
A type of Capital Gains Tax charged by the local Town Hall on the sale of a property. Based on the increase in the value of the land only since the time of the last sale.
Power of Attorney
A third party given official authority to sign documents on your behalf.
Resale
A property which has been in previous ownership although it might not have been occupied.
Residencia Official
Status of anyone who wants to remain in Spain for more than 183 days a year.
Tecnik
Town Hall architect
Urbanisation
A development containing properties with official Government, provincial and Town Hall consents.
Urbanisation fee
See community fees
Valor Catastral
An official Government valuation of the property, usually lower than the actual market value. Used to calculate various taxes including the l.B.l.
Withholding tax
When buying off a non-resident the purchaser pays 5% of the purchase price to the Tax Office while the vendor’s Capital Gains Tax is being assessed.
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