Real Estate Glossary

A lawyer or attorney. In Costa del Sol property purchases, an independent abogado reviews contracts, checks the property's legal status (including AFO), and represents your interests at the Notary.

A certificate specific to Andalucía (including the Costa del Sol) that regularises older properties built without full planning permission. Very common in coastal and rural properties built before stricter planning enforcement. AFO properties can be bought, sold, and insured but cannot be extended. Essential to check before buying on the Costa del Sol.

Stamp duty tax paid on new-build properties in Andalucía at 1.2%, in addition to IVA. Paid at the same time as the purchase.

A binding deposit contract signed when a seller accepts an offer. Typically 10% of the purchase price. If the buyer withdraws, they lose the deposit; if the seller withdraws, they must return double.

The Spanish property cadastre — a register of all properties showing boundaries, size, and catastral value (used for tax calculations). Different from the Land Registry.

Energy Performance Certificate (EPC) rating a property's energy efficiency from A to G. Required by law when selling or renting property in Spain.

The community of owners in a building or urbanización. All owners automatically become members and must pay community fees and abide by community rules. Very common on the Costa del Sol.

The 'Coast of the Sun' — the Mediterranean coastline of Málaga province in southern Spain, stretching from Nerja in the east to Manilva in the west. Famous for its beaches, golf courses, and expat communities.

A legal charge or seizure registered against a property, often for unpaid debts. Your lawyer should check the Nota Simple for any embargos before you buy.

Registration at the local town hall (ayuntamiento) as a resident at a specific address. Required for many administrative processes including healthcare access. Each Costa del Sol town has its own ayuntamiento.

The deposit or down payment — the portion of the purchase price you pay from savings (not borrowed). Non-residents typically need 20-30% entrada.

The public deed signed at the Notary's office that officially transfers property ownership. The Notary reads it aloud and witnesses signatures.

The Euro Interbank Offered Rate — the benchmark interest rate used for variable-rate mortgages in Spain. Most variable mortgages are quoted as Euribor + a margin.

A general term for a property or estate. Can refer to an apartment unit (finca urbana) or a rural property/land (finca rústica). Many Costa del Sol inland properties are classed as fincas rústicas.

Monthly community fees paid to the comunidad de propietarios for maintenance of shared areas, gardens, pools, lifts, security, and building insurance. On the Costa del Sol, these can range from €50 to €500+/month depending on the urbanización's amenities.

An administrative agent or agency that handles bureaucratic paperwork — NIE applications, utility transfers, tax filings, and other formalities. Complements a lawyer's legal work.

A residency permit for non-EU citizens who invest €500,000 or more in Spanish property (debt-free portion). Popular among Costa del Sol buyers. Grants the right to live, work, and travel freely in the Schengen area. The property investment must be unencumbered — mortgage financing doesn't count toward the €500K threshold.

A mortgage — a loan secured against property. Spanish mortgages can be fixed (tipo fijo), variable (tipo variable), or mixed (mixto). Non-residents typically get 60-70% LTV.

Annual property tax paid to the local town hall, similar to council tax. Calculated based on the catastral value, typically 0.4-1.1% per year. Varies between Costa del Sol municipalities.

An estate agency or real estate agent. On the Costa del Sol, many inmobiliarias specialise in international buyers and offer multilingual services. The seller pays the agent's commission.

Transfer tax paid on resale properties. In Andalucía (Costa del Sol), the rate is 7% of the purchase price or declared value, whichever is higher. Lower than some other Spanish regions.

VAT — paid on new-build properties at 10%. Paid instead of ITP, plus AJD stamp duty (1.2% in Andalucía).

Income tax. Non-resident property owners must file annual IRPF returns even if they don't rent out the property (imputed income tax at around 2% of catastral value).

First occupation licence — confirms a new-build property meets building regulations and is ready for occupation. Required for utility connections.

The administrative province containing the entire Costa del Sol. Málaga city is the capital. Property matters are handled by the Málaga Land Registry and courts.

Foreigner's identification number — required for all property transactions, opening bank accounts, paying taxes, and most official processes in Spain. Can be obtained at police stations in Málaga, Marbella, Fuengirola, or at Spanish consulates abroad.

Tax identification number. For foreigners, the NIE serves as the NIF. Required for tax matters and official transactions.

An extract from the Land Registry showing the registered owner, property description, and any charges or mortgages. Essential due diligence before buying — costs around €10 online.

A public notary — a government-appointed official who oversees property transfers, verifies documents, witnesses signatures, and submits deeds for registration. The Notary is neutral — they don't give legal advice.

Municipal capital gains tax on the increase in land value during ownership. Legally paid by the seller, though sometimes negotiated. Calculated by the town hall based on catastral value and years of ownership.

Legal authority to act on someone's behalf. Can be used to sign the escritura if you cannot attend in person. Popular with Costa del Sol buyers who live abroad. Must be notarised and apostilled if granted outside Spain.

The unique identifier for a property in the Catastro (cadastre). Used to link the property to its official records and tax assessments.

The Spanish Land Registry where property ownership is officially recorded. Registration protects your ownership rights against third parties.

Home insurance — combining buildings and contents coverage. Required by mortgage lenders. Spanish policies often include third-party liability. For holiday homes, check cover for unoccupied periods.

Taking over an existing mortgage from the seller rather than arranging a new one. Can be advantageous if the existing mortgage has good terms.

Property valuation carried out by an approved surveyor for the mortgage lender. Determines the maximum amount the bank will lend against the property.

Fixed-rate mortgage — the interest rate stays the same for the entire mortgage term, giving predictable monthly payments. Popular with non-residents who budget in other currencies.

Variable-rate mortgage — the interest rate is linked to Euribor plus a margin, so payments can go up or down with market rates.

A storage room or unit, often included with or sold separately from apartments in Spanish buildings. Useful for holiday homes.

A residential development or estate, often with shared amenities like pools, gardens, tennis courts, and security. Very common on the Costa del Sol, ranging from modest complexes to luxury gated communities. Owners pay community fees for maintenance.

The catastral value — an official valuation used to calculate property taxes (IBI) and minimum ITP. Usually much lower than market value but updated periodically.

Holiday rental licence required in Andalucía to legally rent your property to tourists. Essential if you plan to use platforms like Airbnb or Booking.com. Your lawyer can advise on eligibility and application.

Subsidised housing with price and sale restrictions. If buying VPO, check what restrictions apply to resale.