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Glossary of Terms

Clear definitions of the most common tax, legal, and real estate terminology in Spain.

Tax Terms

Personal Income Tax. A progressive tax levied on the worldwide income of individuals who are tax residents in Spain.
Non-Resident Income Tax. A tax levied on income obtained in Spanish territory by non-resident individuals or entities. See NRIT Guide.
An optional tax regime allowing certain inbound workers to be taxed as non-residents (under IRNR) on their employment income at a flat rate. Learn more.
Value Added Tax (VAT). An indirect tax on consumption. It applies to new-build properties (generally 10%) and most goods and services (general rate of 21%).
Property Transfer Tax. A tax paid when buying a resale property. The rate varies depending on the Autonomous Community. See purchase costs.
Stamp Duty. A tax levied on certain notarial documents, such as the deed for a new-build property or a mortgage deed.
Real Estate Tax. An annual municipal tax on property ownership, calculated based on the cadastral value.
Municipal Capital Gains Tax. A local tax on the increase in the value of urban land when it is transferred (e.g., sold).

Real Estate Terms

A key document from the Land Registry that provides information on a property's ownership, description, and any existing liens or charges (e.g., mortgages, debts).
The Cadastre. An administrative registry that describes all real estate properties. It assigns a unique Cadastral Reference and a Cadastral Value to each property, which is used for tax purposes.
A deposit agreement signed before the final deed of sale, where the buyer pays a deposit (usually 10%) to reserve the property, setting out terms and penalties.
The Public Deed of Sale. The official document signed before a notary that formalizes the property transfer and is required for registration at the Land Registry.
Certificate of Occupancy. An administrative document certifying that a dwelling meets minimum habitability standards. It is required to connect utilities and to legally rent or sell the property.

Residency & Immigration Terms

Foreigner Identification Number. A unique tax and administrative identification number for foreigners, required for almost any official procedure in Spain. More info.
Foreigner Identity Card. The physical document that contains your identification details and NIE, and proves your legal residency status in Spain as a non-EU citizen.
The document (a green card) that proves an EU/EEA/Swiss citizen has registered as a resident in Spain for stays longer than 3 months. Often referred to as the "green NIE".
Registration at the local town hall (Padrón Municipal). This mandatory procedure serves as proof of your address and length of residence in Spain.

This glossary is constantly being updated. If there is a term you don't understand or would like to see here, please contact us.