AFO / DAFO
LegalA procedure to legalise, after the fact, a home built outside its permit. Common for rural properties in Andalucía.
Every Spanish term you come across when buying a home in Spain, explained in plain language. Search by the Spanish term or by its meaning, and filter by category.
A procedure to legalise, after the fact, a home built outside its permit. Common for rural properties in Andalucía.
Charges resting on a property, such as a mortgage, a seizure or overdue community fees. They follow the property, not the seller.
The cadastre, which registers properties for tax purposes. Note that the Catastro and the property register are two separate systems.
A habitation certificate confirming that a home meets the minimum requirements to be lived in. Often needed to connect utilities.
The energy performance certificate of the home, mandatory for sale and rental. It indicates consumption and insulation.
The deposit under the preliminary purchase contract. Under a contrato de arras penitenciales you may withdraw, but you then lose your deposit; if the seller withdraws, you receive double.
An initial reservation agreement that takes a home off the market temporarily against a small deposit, before the arras contract follows.
A seizure on the property, for example due to an unpaid debt. It appears in the nota simple and should be cleared before the transfer.
The official notarial deed of sale. It formally transfers ownership to you; only after signing before the notary are you the legal owner.
The first-occupancy licence for new-build homes, confirming that the property was built in line with its permit and may be occupied.
An extract from the Spanish property register. It shows who the owner is, how large the property is and whether any charges such as a mortgage or a seizure rest on it. We always request it before you make an offer.
Legal advice serviceThe notary who draws up the deed of sale and formalises the transfer. An independent public official with a legally fixed fee.
The municipal zoning plan that determines what may be built on a plot of land. Crucial to check when buying land or new-build.
A notarial power of attorney letting someone, for example your lawyer, act on your behalf. Useful when you cannot always be in Spain.
The unique cadastral number of a property, comparable to a fingerprint of the property for the tax authorities.
The Spanish property register recording who owns a home and which charges rest on it. Registration puts your ownership in writing.
An easement, for example a right of way for neighbours across your land.
Usufruct. The right to use a property and draw income from it while someone else remains the owner.
Stamp duty on the official deed, only on new-build and on the mortgage deed. The percentage is set regionally.
The municipal waste tax, a small annual charge for household rubbish collection.
The monthly or annual contribution to the owners’ association for shared amenities.
The annual municipal property tax, comparable to a local real-estate tax.
The income tax for non-residents on the personal use or rental income of your Spanish home.
Transfer tax on the purchase of a resale home. A percentage of the price that varies by region, usually between 6 and 13 percent.
Cost calculatorSpanish VAT. On new-build homes you pay 10 percent IVA instead of transfer tax.
The tax form with which non-residents declare and pay their annual IRNR.
The Spanish identification number for foreigners. You need it to buy a home, take out a mortgage and pay tax. Without a NIE you cannot sign a deed.
NIE & TIE serviceWealth tax, which applies above a certain threshold. The exemptions differ greatly by region.
A municipal tax on the increase in land value, settled at the time of sale.
When a non-resident sells, the buyer withholds 3 percent of the price and pays it to the tax authorities as an advance on the seller’s capital-gains tax.
A lawyer. An independent legal professional who checks the purchase legally and protects your interests.
Legal advice serviceThe legal and structural investigation of a home before purchase, to uncover hidden problems in time.
The handover of the keys. This often coincides with signing before the notary.
The signing of the deed of sale before the notary, the moment of legal transfer.
An administrative agency that handles practical formalities, such as paying taxes and registering the property.
The offer you make on a home, often after a viewing and negotiation.
Reserving a home against a small deposit so that the seller takes it off the market.
A deposit you put down to reserve a home, ahead of the purchase contract.
Taking over an existing contract, for example the seller’s current mortgage or insurance policy.
An official valuation of the property. The bank requires it before approving a mortgage.
Valuation serviceA bank guarantee. For off-plan new-build, the bank guarantees your deposits are refunded if the developer fails to deliver. Always ask for this before you pay.
The energy rating of the home, from A to G, indicating its expected consumption.
The owners’ association of an apartment block or urbanisation, which manages shared upkeep.
The bylaws of the owners’ association, setting the rules on use, rental and shared costs.
The technical inspection of older buildings, comparable to a mandatory building survey.
Turnkey delivery. You receive a fully finished home you can move into straight away.
The Spanish building act that sets quality requirements and guarantees for new construction.
The specifications for a new-build, listing the exact materials and finishes the developer promises.
New-build. A home sold for the first time, directly from the developer.
Resale property, a home that has already been sold and lived in before.
A ten-year insurance the developer takes out against serious structural defects in new-build.
A guarantee, for example a person or bank standing surety for the repayment of a loan.
An arrangement fee some banks charge on the loan amount when taking out a mortgage.
The European reference rate on which variable-rate mortgages in Spain are based.
The mortgage. For non-residents, Spanish banks usually finance up to 60 to 70 percent of the value.
Mortgage serviceLoan to value, the ratio between the loan amount and the property’s value, expressed as a percentage.
Taking over the seller’s existing mortgage, or switching to another bank while keeping the loan.
The annual percentage rate of a loan, including interest and costs, comparable to an APR.
An autonomous community, the Spanish region. Many property taxes and rules are set at this level.
Your registration with the town hall, the padrón. Needed for access to healthcare, schooling and local services.
The licence you need to rent your home legally to tourists. The rules differ by region.
You are a tax resident if you spend more than 183 days a year in Spain or your centre of economic interests is there.
The utilities, such as water, electricity and gas, which you put in your name after the purchase.
In Spain, Spanish is the legally valid language of the deed. You usually receive a translation for information, but the Spanish text prevails. We and your lawyer go through every clause with you.
Just ask us, or let us guide you through the entire buying process. We explain every term in plain language.
The information above is indicative and not legal or tax advice. Rules and rates differ by region and situation and change regularly. For questions in this area we always refer you to a Spanish tax adviser or lawyer. Last reviewed: June 2026.
The complete guide, from first orientation to the handover of the keys.
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