{"id":909,"date":"2026-09-09T16:31:08","date_gmt":"2026-09-09T16:31:08","guid":{"rendered":"https:\/\/www.balearic-properties.com\/living\/?p=909"},"modified":"2026-10-05T10:06:18","modified_gmt":"2026-10-05T10:06:18","slug":"real-estate-terminology-explained","status":"publish","type":"post","link":"https:\/\/www.balearic-properties.com\/living\/guides\/real-estate-terminology-explained\/","title":{"rendered":"Real Estate Terminology Explained: A Buyer’s Glossary for the Balearic Islands"},"content":{"rendered":"

Spanish property terminology can feel like a second negotiation. This plain-English glossary explains the legal, tax, planning and property terms buyers are most likely to encounter in Mallorca, Menorca and Ibiza.<\/em><\/p>\n

Reviewed by Iris Gr\u00fcnewald, Co-founder and Director of Balearic Properties.<\/strong> Last reviewed September 2026. This guide is general information, not legal or tax advice; buyers should obtain independent advice for their circumstances.<\/p>\n

Spanish property terms: the quick answer<\/h2>\n

The documents that usually matter most before buying are the nota simple<\/strong>, escritura p\u00fablica<\/strong>, referencia catastral<\/strong>, planning and occupancy documents, the energy certificate and evidence that taxes, community fees and utilities are up to date. A reservation or contrato de arras<\/strong> should only be signed once its conditions, deadlines and consequences are understood.<\/p>\n

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\u201cThe safest approach is not to memorise every Spanish term, but to know which documents must agree with one another. The Registry, Cadastre, planning record and physical property should tell the same story before a buyer commits.\u201d \u2014 Iris Gr\u00fcnewald<\/p>\n<\/blockquote>\n

Contracts, ownership and completion<\/h2>\n

Arras \/ contrato de arras<\/h3>\n

A private deposit agreement used to reserve a property and set the route to completion. The consequences depend on the wording and legal type of the deposit. Under a commonly used arras penitenciales<\/em> structure, withdrawal can mean the buyer loses the deposit or the seller returns double, but buyers should never assume this applies automatically. The contract should state the price, deposit, completion deadline, included items, conditions and treatment of defects or missing documents.<\/p>\n

Contrato privado de compraventa<\/h3>\n

A private purchase contract between buyer and seller. It can create binding obligations before the notarial deed is signed. It should be reviewed by the buyer\u2019s independent lawyer before signature.<\/p>\n

Escritura p\u00fablica de compraventa<\/h3>\n

The public deed of sale signed before a notary. It records the parties, property, price and other essential terms. The deed is then submitted for tax and registration formalities. The Spanish Notariat provides an official glossary of notarial concepts<\/a>.<\/p>\n

Notario<\/h3>\n

The notary is an impartial public official who identifies the parties, checks legality and authorises the public deed. The notary does not replace the buyer\u2019s lawyer, surveyor, architect or tax adviser.<\/p>\n

Registro de la Propiedad<\/h3>\n

The Land Registry records registered ownership, mortgages, charges and certain rights. It is legally distinct from the Cadastre. The official Registradores de Espa\u00f1a portal<\/a> provides access to Registry services.<\/p>\n

Nota simple<\/h3>\n

An informative Land Registry extract showing the registered description, owner and recorded charges at a particular point in time. It is fundamental due-diligence evidence, but it is not a technical survey or a guarantee that every alteration is planning-compliant.<\/p>\n

Titular registral<\/h3>\n

The person or company recorded as owner at the Land Registry. The seller\u2019s identity and authority to sell must match the documentation, including where ownership is held through a company, inheritance or power of attorney.<\/p>\n

Cargas<\/h3>\n

Registered burdens or charges, potentially including mortgages, embargoes, easements or restrictions. The completion arrangements should specify which charges will be cancelled and how.<\/p>\n

Hipoteca<\/h3>\n

A mortgage secured against the property. If the seller has a mortgage, the buyer\u2019s lawyer should coordinate cancellation and Registry follow-through. Buyers financing their purchase should distinguish the bank valuation from an independent condition survey.<\/p>\n

Usufructo and nuda propiedad<\/h3>\n

Usufructo<\/em> is the right to use and benefit from an asset; nuda propiedad<\/em> is bare ownership without that current right of use. Both interests can affect who must consent to a sale.<\/p>\n

Servidumbre<\/h3>\n

An easement or right affecting land, such as access, drainage or utility rights. Its practical effect should be checked on the ground as well as in documentation.<\/p>\n

Poder notarial<\/h3>\n

A power of attorney authorising another person to act for the buyer or seller. Its scope should be precise and the original or authorised electronic copy available when required.<\/p>\n

Cadastre, planning and building status<\/h2>\n

Catastro and referencia catastral<\/h3>\n

The Cadastre is an administrative property database used primarily for description and taxation. The referencia catastral<\/em> is the unique cadastral reference. Cadastral information and Land Registry information serve different purposes and should be cross-checked.<\/p>\n

IBI<\/h3>\n

Impuesto sobre Bienes Inmuebles<\/em>, the annual municipal property tax. Buyers normally request the latest receipt and confirmation of payment. The cadastral value used for IBI is not the same as the agreed market price.<\/p>\n

Valor de referencia<\/h3>\n

A cadastral reference value that may be relevant to the tax base for certain property transactions. It is not an estate-agent valuation. Its tax effect must be checked for the specific transaction and date.<\/p>\n

Licencia de obra<\/h3>\n

A municipal building licence. Works may require a major or minor works licence depending on their nature and local rules. A licence alone does not prove that the finished work matches the approved project.<\/p>\n

Final de obra<\/h3>\n

Documentation confirming completion of authorised works, typically involving technical certification and subsequent formalities. For newer or substantially altered properties, buyers should confirm that completion is reflected where required.<\/p>\n

C\u00e9dula de habitabilidad<\/h3>\n

An occupancy or habitability document confirming that a dwelling meets applicable minimum conditions, subject to the type and age of the property. Its availability, validity and relevance should be checked with the buyer\u2019s lawyer or architect in the Balearic context.<\/p>\n

Certificado de eficiencia energ\u00e9tica<\/h3>\n

The energy performance certificate and label. The Balearic Government maintains the official register and public consultation service<\/a>.<\/p>\n

Certificado de antig\u00fcedad<\/h3>\n

An architect\u2019s certificate describing the age of a building or alteration. It may support specific Registry or planning procedures, but it does not by itself legalise works or establish that they comply with planning rules.<\/p>\n

Fuera de ordenaci\u00f3n<\/h3>\n

A planning status affecting buildings that do not conform to current planning rules, often limiting future works or rebuilding rights. The precise implications depend on the property and applicable legislation.<\/p>\n

Suelo urbano, urbanizable and r\u00fastico<\/h3>\n

Broad land classifications: urban land, land potentially capable of urban development, and rural land. Classification affects permitted uses, building rights and services, but the label alone is not enough: the detailed municipal plan and property-specific record must be reviewed.<\/p>\n

Legalizaci\u00f3n<\/h3>\n

A procedure intended to regularise works carried out without the required permission, where legally possible. Not every structure can be legalised. Buyers should require written, property-specific advice rather than relying on an informal assurance that a pool, guest house or terrace \u201ccan be sorted later\u201d.<\/p>\n

Community ownership and ongoing costs<\/h2>\n

Comunidad de propietarios<\/h3>\n

The owners\u2019 community in an apartment building or shared development. Buyers should review statutes, recent meeting minutes, accounts, approved works, arrears and any extraordinary assessments.<\/p>\n

Cuota de comunidad<\/h3>\n

The regular community fee paid for shared costs. The amount may be based on the property\u2019s participation coefficient rather than equal shares.<\/p>\n

Derrama<\/h3>\n

An extraordinary community assessment for major works or unexpected expenditure. The private contract should make clear who pays an approved assessment due before or after completion.<\/p>\n

Coeficiente de participaci\u00f3n<\/h3>\n

The percentage assigned to a unit for participation in common elements, voting or costs, as defined by the title and community rules.<\/p>\n

Taxes and transaction costs<\/h2>\n

ITP<\/h3>\n

Impuesto sobre Transmisiones Patrimoniales<\/em>, generally associated with purchases of resale property. Rates, bands and reliefs can change, so the calculation should be confirmed for the buyer and completion date.<\/p>\n

IVA and AJD<\/h3>\n

VAT (IVA<\/em>) and Stamp Duty (Actos Jur\u00eddicos Documentados<\/em>) may apply to certain new-build or business transactions instead of the resale-property treatment. Never apply a headline rate without professional confirmation of the transaction\u2019s facts.<\/p>\n

Plusval\u00eda municipal<\/h3>\n

A municipal tax linked to the increase in value of urban land, commonly relevant on a sale. Responsibility and retention arrangements should be addressed by the lawyers, especially where the seller is non-resident.<\/p>\n

NIE<\/h3>\n

The foreigner identification number used in Spanish tax and administrative procedures. Buyers commonly need an NIE before completion, but obtaining one does not create Spanish tax residency.<\/p>\n

Retenci\u00f3n de no residente<\/h3>\n

Where the seller is non-resident for Spanish tax purposes, the buyer may have a statutory obligation to retain and pay part of the price to the Tax Agency. The lawyer should calculate and file the appropriate form.<\/p>\n

For a wider overview, read our Mallorca Property Buyer\u2019s Guide<\/a> and our guide to buying property in Mallorca<\/a>.<\/p>\n

Holiday-rental and occupancy terminology<\/h2>\n

ETV \/ tourist rental licence<\/h3>\n

An authorisation connected with tourist accommodation, subject to property type, zoning and current Balearic regulation. Buyers should verify the licence, registered places, ownership, sanctions and whether the intended operation can continue after purchase. A property having been advertised for holiday rental does not by itself prove a valid transferable authorisation.<\/p>\n

Alquiler de temporada<\/h3>\n

A seasonal tenancy for a genuine temporary purpose, distinct from tourist accommodation and from a habitual residential tenancy. The real use and service model matter more than the label on the contract.<\/p>\n

Those exploring the north of Mallorca can also see Pollensina\u2019s curated collection of private villas and fincas for rent in Pollen\u00e7a<\/a>, useful for experiencing an area before committing to a purchase.<\/p>\n

People involved in a Balearic property purchase<\/h2>\n