Glossary of Terms relevant to Spanish Mortgage

Ayuntamiento

Local town hall

Cancelacion

Redemption of mortgage

Carencia

Grace period/interest only

Comision de apertura

Bank arrangement fee

Contrato Privado

Private contract

Cuota

Monthly mortgage payment

Escritura

Deed

Euribor

European bank base rate

Hipoteca

Mortgage

IAJD (Impuestos Actos Juridicos Documentados)

Tax on raising a mortgage charged at 0.5% of mortgage liability

IBI (Impuestos de Bienes Inmuebles)

Local annual property tax

IRPH (Indices referencia de prestamos hipotecarios)

Spanish average mortgage rate over the last 3 years

ITP  (Impuesto sobre transmisiones patrimoniales)

Tax on capital transfers, paid by the buyer at 6% or 7% depending on the region

NIE

Foreigner’s identification number. Every foreigner must have this in order to enter into a legal transaction in Spain.

Nota Simple

A report taken form the Property Register confirming the description, ownership and debts associated to the property

Licencia de Obra

Licence to build granted by the local town hall

IVA

VAT on new properties at 7% except in Canary Islands where it is 5%.

Novacion

Change to the terms of a financial agreement

Oferta Vinculante

Binding mortgage offer

Plusvalia

Capital gains tax

Registro de la Propiedad

Property register

TAE

Annual Percentage Rate, APR

Tasacion

Lenders Valuation

Tipo de interes

Interest Rate

Amortización

Capital & Repayment Mortgage

Cancelación anticipada

Early Repayment or Early Redemption

Cancelación Registral

Register Discharge

Carga

Encumbrance or Registered Charge

Cédula de habitabilidad

Occupancy Certificate

Gestoría

Solicitor

Verificación registral

Land Register Check

Subrogación de deudor

Re-mortgage of the debtor)

Subrogación

Re-mortgaging with another lender