Spanish Property Glossary

NIE stands for Número de Identidad de Extranjero: your Spanish identification number as a foreigner. Without a NIE, you cannot put a property in your name, open a bank account, or file tax returns. A gestor is a Spanish administrative service provider who handles these types of formalities: the NIE application, registrations, and tax filings. They are not a notary or a lawyer, but they are the person who keeps the paperwork moving.

The nota simple is an extract from the Spanish property register. It shows who the owner is, what exactly is registered, and whether there are any mortgages, debts, or liens on the property. You should read this document before making an offer. The escritura is the notarial title deed that you sign at the transfer. You only become the official owner once the escritura has been registered.

The two taxes upon purchase. ITP stands for Impuesto de Transmisiones Patrimoniales: the transfer tax for existing properties, a percentage of the purchase price set by the region. In Andalusia, this is 7% ITP. IVA is the Spanish VAT and applies to new-build properties from a developer: 10% IVA on the purchase price, plus stamp duty (AJD). You pay either ITP or IVA, never both.

The contrato de arras is the preliminary purchase contract. It sets out the price, payment terms, and transfer date, and you pay a deposit as part of the purchase price. If you withdraw without a valid reason, you lose that deposit. If the seller withdraws, they are generally required to pay double the amount. The wording of this contract determines your risk, so have a lawyer review it.

Plusvalía municipal is the municipal tax on the increase in land value upon sale. As a rule, the seller pays this. IBI is the annual municipal property tax that you pay as the owner, calculated based on the cadastral value. Check during the transfer whether the IBI for the current year has been paid, as this will be settled.