Spanish Glossary
If you're thinking of buying a property in Spain it's worthwhile familiarising yourself with the most commonly used words.
Abagado
Legally qualified person i.e. a solicitor, who acts on behalf of the purchaser in the purchase of a property. The standard solicitor's fee for the purchase of a property is between 1% and 1.5% of the purchase price plus IVA.
Capital Gains Tax
A tax paid on the gain made on the property when it is sold.
Copia Simple
A copy of the title deeds (see Escritura).
Deposit
Usually approx £2,000 and your official confirmation that you intend to proceed with the purchase of that property.
Escritura
The title deeds.
Fees
Apart from the actual cost of a property, you will need to allow approximately 10% of the purchase price to cover the various fees and costs of acquiring a property. The 10% will cover Abagado [Solicitor's] fees, Translation fees, Land Registry costs, Notary fees, Stamp Duty and IVA [VAT].
Gestor
A licensed conveyancer.
Hacienda
The Spanish tax authorities and equivalent to our Inland Revenue.
IVA
The Spanish equivalent to VAT (Value Added Tax).
Land Registry
The place where all Escrituras (Title Deeds) are registered and where title and any charges against a property are checked. Registration fees to inscribe the new deed into your name should not exceed 1% of the registered value.
Main Contract
A contract with conditions (such as the payment structure at each stage of construction, see stage payments) attached to the sale of a property.
Notary (Notaria)
Public official appointed by the Spanish government to witness the signing of all legal public documents. They put on the public record the fact that the title deed recording the sale/purchase has been signed in their presence and understood by the parties concerned. When the Escritura is signed in front of the notary either the purchase price is handed over to the person selling the house or the seller confirms that the money has already been handed over. The original signed document is retained by the notary who will apply for a formal change in the land registry.
Numero de Identificacion Fiscal (NIE)
Foreigner’s Identification Number. All non-residents require a NIE and the solicitor acting on your behalf will obtain one for you.
Option or Reservation Contract
A document reserving a property and acting as a signed receipt for any monies paid (see Deposit) with respect to that contract. Normally valid for 30 days to give lawyers time to carry out the necessary searches.
Plus Valia
A local tax, usually paid by the vendor, calculated as a percentage of the difference in the increased (rateable) value of a property since it was last sold.
Purchase Currency
Due to fluctuating currency rates the purchasing currency is almost always Euro's. Whilst UK banks will assist you in buying Euros and arranging the transfer of funds to Spanish Bank, a number of specialist Foreign Exchange companies offer better exchange rates. With no fees or commission to pay, plus limited free transfer of funds, your property purchase can become less expensive.
Stamp Duty
The current rate is 1% (December 2002)
Transfer Tax (Impuesto de Transmisiones Patrimoniales)
A 7% tax payable on resale properties.
