An API (Agente de la Propiedad Inmobiliaria) is a certified real estate agent with specialised professional training. An API has completed formal education that covers not only property sales and mediation, but also the legal, technical, and regulatory aspects of…
Stamp Duty (AJD, El impuesto de Actos Jurídicos Documentados) is payable when purchasing a newly built property in Spain, along with IVA (VAT), unlike the purchase of a second-hand property, where the Property Transfer Tax – ITP – applies instead.…
Rent-to-own (or Lease with Option to Buy) is a contract (still relatively uncommon in Spain) that combines a rental agreement with the possibility of purchasing the property at the end of the rental period. As part of the contract, the…
Early repayment of a mortgage involves paying off part (or all) of the borrowed amount before the agreed term ends. If you choose to make a partial repayment, you have two options: shorten the term of the mortgage (so it…
A guarantee is a commitment by an individual or an institution to cover someone else’s debt if that person fails to pay. It serves as a way to secure a loan, and in the case of mortgages, banks may require…
Build to Rent is a growing property trend in Spain. Originating in the United Kingdom, entire buildings are developed specifically for rental rather than for sale. This model presents lower risk for the developer, as they sell the entire property…
Encumbrances (cargas in Spanish) on a property are limitations or obligations that restrict its value or use. You can check them by requesting an extract (nota simple) from the Land Registry (Registro de la Propiedad), and it’s essential to review…
The Catastro is a public registry that records all real estate properties in Spain (homes, commercial premises, plots, etc.). It contains detailed information about each property, including the cadastral reference number, exact address, land and built surface area, usage (residential,…
The cédula de habitabilidad (certificate of habitability) is an official document that confirms a property meets the minimum conditions required for human habitation, according to the standards set by the regional government (comunidad autónoma). It is issued after an inspection…
The Energy Performance Certificate (certificado de eficiencia energética o CEE) is a mandatory document in Spain that assesses a property’s energy consumption and CO₂ emissions. Properties are rated from A to G, with A indicating very high efficiency and G…
Shared exclusivity, known as colaboración inmobiliaria or exclusividad multiple in Spanish, are part of a sales model in which several estate agencies work together to sell a property under a single exclusive contract. Exclusive agreements benefit the seller, as the…
Coliving is a modern form of shared housing managed by specialised companies aiming to provide high-end living spaces at reduced costs. It is primarily targeted at students, young professionals, and digital nomads, and typically includes premium services such as high-speed…
The contrato de arras is a preliminary agreement between the buyer and seller of a property, confirming both parties’ commitment to completing the sale. It typically includes a deposit of between 5% and 10% of the property’s value, serving as…
The copia simple is a simplified version or extract of the official public deed of a property, summarising the key details of the purchase agreement. It includes information such as the buyer and seller, property description (square metres, address, cadastral…
Horizontal division is a legal process by which a multi-storey building is divided into separate, independent units. Each unit is granted its own title deed, land registry reference, and a proportional share of ownership over the communal areas. This procedure…
The escritura de propiedad or Title Deed is a legal document that transfers ownership of a property from the seller to the buyer. It confirms who the legal owner is and under what conditions the property was acquired. It must…
Euribor (short for Euro Interbank Offered Rate) is a benchmark interest rate used to calculate mortgage repayments. It reflects the average interest rate at which European banks lend money to one another. Typically, banks set the mortgage interest rate based…
A sole agency agreement is a contract whereby the property seller grants the exclusive right to market their property to a single agency for a specified period. The contract sets out the duration of the agreement—usually 3, 6, or 12…
Property flipping is a specialised investment strategy that involves buying properties below market value—often referred to as “fixer-uppers”—renovating them quickly, and selling them at a higher price within a short period. For industry professionals, it is a way to generate…
Gentrification is an urban development process whereby a traditionally low-income neighbourhood begins to attract residents with greater purchasing power, leading to both positive and negative changes for the local community. It generally takes place in older neighbourhoods which, due to…
