Spanish property terms, explained in plain English
Buying property in Spain means meeting a vocabulary that doesn’t exist back home. These terms will appear in your contracts, your deeds and your tax bills — here’s what each one actually means, and why it matters to you.
A
Arras
A deposit paid to reserve a property before signing the deed. Depending on the type agreed, if you pull out you lose it; if the seller pulls out, they owe you double.
this is the first real money you commit, and the arras contract is already binding.
C
Cargas
The Spanish term for encumbrances: debts or legal limitations attached to a property (mortgages, embargoes, rights of way). They travel with the property, not with the owner.
buy without checking, and you inherit them.
Catastro
Spain’s cadastre: the administrative register describing properties physically (size, location, use) for tax purposes. It does not prove ownership — that’s the Registro de la Propiedad.
Cédula de habitabilidad
Official certificate confirming a dwelling meets the minimum conditions to be lived in.
without it you can’t sell or rent the property, or connect utilities.
Certificado energético
The Spanish energy performance certificate (EPC): a mandatory rating from A to G, required to sell or rent.
Comunidad de propietarios
The owners’ association of a building, which manages shared areas and charges monthly fees.
unpaid fees from the previous owner can become your problem.
D
Declaración de obra nueva
The new-build declaration: the deed that registers a newly built property at the Land Registry.
until it’s done, the building doesn’t legally exist on the register — only the land does.
E
Edificabilidad
The buildable area or plot ratio: the total floor area you’re allowed to build on a plot.
this, far more than the plot’s size, determines what land is worth.
Escritura pública
The title deed, signed before a notary, that formalises the purchase. This is the step that makes you the owner.
I
IBI (Impuesto sobre Bienes Inmuebles)
Annual local property tax, paid by whoever owns the property on 1 January.
ITE (Inspección Técnica de Edificios)
Mandatory periodic building inspection for properties over a certain age.
an unfavourable report can mean compulsory repair works that the buyer inherits.
ITP (Impuesto de Transmisiones Patrimoniales)
Transfer tax paid when buying resale property. The rate varies by region.
L
Licencia de obra mayor
Municipal permit required for major works: new builds, structural changes, extensions or change of use.
it’s the slowest step in the process, and municipal timelines dictate the whole schedule.
Licencia de primera ocupación
Municipal certificate confirming a finished building matches its permit and can be occupied.
without it you can’t connect utilities or complete handover to buyers.
N
NIE (Número de Identidad de Extranjero)
The foreigner identification number. You cannot buy property in Spain without one.
Nota simple
Land Registry extract showing who owns a property, how it’s described, and what charges sit on it.
it’s the first check in any transaction. It costs a few euros and prevents six-figure mistakes.
P
Plusvalía municipal
Local tax on the increase in the land’s value between purchase and sale. Normally paid by the seller.
Promotor
The developer who drives and finances a project and carries the risk. Not the same as the constructora, which does the building.
R
Referencia catastral
The cadastral reference: the unique 20-character code identifying every property in the Catastro.
Registro de la Propiedad
The public Land Registry. This is what proves ownership.
Retranqueo
The minimum setback required between a building and the plot’s boundaries.
it reduces the area you can actually build on — and many buyers discover it after purchasing.
S
Servidumbre de paso
A right of way allowing someone else to cross the land.
it attaches to the land, not the owner. Buy the plot, and the right of way comes with it.
Suelo urbanizable
Developable land: not yet urban, but which planning foresees becoming urban through a development process.
Suelo urbano consolidado
Consolidated urban land, with all services and infrastructure already in place. You can build directly.
Suelo urbano no consolidado
Non-consolidated urban land, still missing infrastructure works or administrative steps before building is possible.
the difference between consolidated and non-consolidated can mean years of process and development costs on your account.
Superficie construida
Total built area including walls and structural elements.
Superficie útil
The usable or net floor area inside, excluding walls. Always smaller than the superficie construida.
the gap between útil and construida is typically 15-20%. A “100 m²” listing may be 82 m² of actual living space.
If a term isn’t here, or you’re facing a situation you’re not sure how to handle, ask us