Buyer´s guide

Useful Definitions

Arras o la señal

The amount of money given to the seller as a deposit upon the property. It is measured as a percentage of the final price of the property.

El catastro

A registry kept by the State (Ministerio de Economia y Hacienda) which lists notable rustic properties, town properties and those of special character.

División horizontal

An act, which goes on public record, which involves the dividing up of property (for example, in a development or urbanization) into various distinct and individual properties, with an obligation upon each individual owner to contribute to the development, urbanization, etc., as a whole. An example of this could be community swimming pool maintenance. It is registered in the Registro de la Propiedad.

Escritura: Deed

A public document signed and authorized by a notary, which gives authority to its content and which allows it to be registered in the Registro de la Propiedad.

Impuesto sobre actos jurídicos documentados (IAJD): Stamp Duty

A tax which is applied to all actions completed by public documentation, registered transactions and those involving quantities of money, as in the buying and selling of property and mortgages.

Impuesto sobre Bienes Inmuebles: Property Tax

A local tax which is charged annually against a property. It is assessed by the Valor Catastral, (the assessed value of the property).

Impuesto sobre Transmisiones Patrimoniales: Transfere Tax

This is the tax charged upon buying and selling second-hand property or the succession of property from one owner to another. The average amount is fixed at 6% throughout Spain, although there are variations in certain independent communities, who can establish exceptions and conditions to the rule. The most common amounts are 4%, 6% and 7%.

Plus valía

This small tax is paid to the Town hall in case of sale of property.