When you sell, or buy property in Spain, you will come across words that are used extensively and which could be good to master. Below you will find a selection of the ones that we think are the most important to know.
Catastro – The Cadastre is an entity attached to the Ministry of Finance. This body functions as the administrative registry of each and every property in Spain. The Cadastre would be used to indicate the indications of any property, but cannot confirm the ownership of this. The main function is to act as a base for taxes such as IBI, Inheritance and Gift Tax or Transfer Tax.
Registro de la Propiedad – The Land Registry is an entity attached to the Ministry of Justice. This body confirms the ownership or who is the owner of any property that is registered in this register. The big difference between the Cadastre and the Land Registry is the latter one shows the ownership of a house or property. Therefore, the prevailing entity is the Land Registry. If you see that there are differences in surface areas between the Cadastre and the Registry, you should ask the Cadastre to make the necessary modifications.
Nota simple – Is a document issued by the Land Registry in order to provide the essential information contained in the Register on a specific property, such as who owns the property, any associated charges or encumbrances and any limitations of use it may have.
Ayuntamiento – The municipality is the corporation formed by the mayor and the councillors who are in charge of the political administration of a municipality. Its main functions are to attend and propose to the town hall sessions the measures they deem most appropriate to address municipal affairs. They issue the land rates and refuse receipts.
Notario público – Notaries are State civil servants required to provide citizens with the legal certainty within the context of extra-judicial legal dealings. They are also legal professionals practising under the rules of competition. This dual status guarantees their independence. In the exercise of his/her function, he/she draws up two generic types of documents, namely the Deeds and the Minutes. The Deed is the original instrument in which the notary records one or more legal acts (contracts, agreements, wills, unilateral declarations of will, etc.).
Escritura/Copia simple – “Escritura” is a notarial instrument and public document in which before a notary public a certain fact or a right authorised by said notary public is performed, which he/she signs with the grantor or grantors, showing about the legal capacity of the content and the date in which it was performed. The public deed when selling or purchasing a property is always signed with a notary for example. “Nota simple” or the authentic copy is a public document signed by the Notary with the same value and effects as the public deeds or matrix.
Cédula de habitabilidad – The certificate of habitability is the administrative document that ratifies that a dwelling meets the basic conditions to be inhabited, that it is fit to be destined for human residence, without prejudice to the fact that other duly authorised activities are carried out in it. It is obligatory when renting and selling a house.
CEE – (Certificado de Eficiencia Energética) The Energy Efficiency Certificate is a document required by the Ministry of Industry, Energy and Tourism for all housing to be rented or purchased by another person. This measure aims to achieve an energy improvement in all countries of the European Union. The energy certificate is mandatory in Spain from June 1, 2013 in order to rent or sell a property or business unit.
IBI – ( Impuesto sobre Bienes Inmuebles) The land rates tax paid once every year. (see more in our blog Spanish taxes for non-resident property owners https://mallorcaresidencia.com/news/)
Basuras – The refuse tax normally paid once a year. (see more in our blog Spanish taxes for non-resident property owners https://mallorcaresidencia.com/news/)
Endesa – It is one of the three largest companies in the electricity sector in Spain. Endesa generates, distributes and markets electricity and natural gas.
Referencia catastral – The cadastral reference is the official and obligatory identifier of real estate. It consists of an alphanumeric code that is assigned by the Cadastre so that every property must have a unique cadastral reference that allows it to be placed unequivocally in the cadastral cartography.
Valor catastral – The cadastral value is an administrative value objectively determined for each real estate from the data that exist in the real estate cadastre and that is integrated by the cadastral value of the land and the cadastral value of the constructions art.
IRPF – (Impuesto sobre la Renta de las Personas Físicas) is a progressive and direct personal tax levied on the income obtained in a calendar year by residents in Spain. Thus, it is a tax figure belonging to the Spanish tax system.
IRNR– (Impuesto sobre la Renta de No Residentes) The people who must pay this tax are individuals who have obtained income in Spain even if their tax residence is not in the country, for example, the income from real estate in Spanish territory, in other words, the money that may come from renting housing, among others. Model 210.
Agencia Tributaria (AEAT) – The Spanish Tax Authorities.
IVA – (Impuesto sobre el Valor Añadido) Is the VAT. It is paid when the property is delivered for the first time. First delivery” is understood to be those acquired from the developer after the construction of the property.
ITP – (Impuesto de Transmissiones Patrimoniales) – The tax only applies to the purchase of a second-hand home between private individuals. Its declaration is made through the 600 form, with a tax rate and tax benefits determined by each community.
Plusvalía – Is a tax under Spain’s local tax system which is levied on the increase in the value of urban land revealed at the time of transfer. It is the profit obtained as the result of a positive difference between the price at which a property was purchased and the price of its sale in an economic transaction or operation.
ITE – Inspección Técnica de Edificaciones It is the technical inspection of buildings is the inspection through which every building with a certain age has to pass in order to assess whether it meets all the safety requirements. This inspection must be carried out by a qualified technician who may be an architect or quantity surveyor. If the professional in charge of carrying out the inspection certifies that the building remains in good condition and meets all the necessary safety conditions, the ITE will be approved.
Comunidad de propietarios – Community of owners.
Gestoría – Is a company that offers administration management services to companies and self-employed. Every agency is managed, at least, by an administrative manager accredited by a professional association. They offer services such as dealing with your tax return in Spain, labour procedures, management of the accounting and invoicing of a business, management of the setting up of a company and much more.
Mirlinda Jonuzi
Team Assistant @ Mallorcaresidencia