Amortización anticipada – Early payment
Refers to the total or partial payment of a loan prior to its final instalment.
This process is usually subject to commissions.

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Amortización - Payment
Total or partial payment of a loan according to the conditions signed with the financial institution. The payments can be monthly, biannual or annual.
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A.P.I. - Agente de la propiedad inmobiliaria - Real Estate Agent
Real Estate Agent
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Arras - Down payment or Deposit
Refers to the amount of money the buyer gives to the vendor of the property as a guarantee that they will purchase. If the operation goes ahead, the down payment will be considered part of the total price.
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Avalista - Guarantor
Person who is included in the mortgage and who will take responsibility of the payments should the debt or interest not be covered by the borrower.
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Cancelación - Cancellation
Once the total amount of the loan has been repaid.
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Capital - Capital
Total amount of the mortgage excluding the interests.
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Cargas – Charges
Charges that apply to a previously owned property such as mortgage instalments not being met.
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Cédula de habitabilidad - Habitation licence
It is the document that proves that the property can be used as it was designed for. It must be completed before you move into the property and is compulsory to get a mortgage.
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Certificado registral – Property registry certificate
Paperwork provided by the property registry which shows the charges held by a property.
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Comisión de apertura - Opening Fee
Amount that is paid once a mortgage has been approved to cover the banks administrative costs. It is only paid once and is usually a percentage of the amount loaned.
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Comisión de cancelación anticipada – Partial cancellation fee
Is usually 1% of the amount loaned and will be charged if you decide to cancel the mortgage prior to the end of term.
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Comisión de subrogación – Fee for transferring a mortgage
A percentage will be charged on the remaining amount of the mortgage should the client decide changing the mortgage to a different bank with better conditions.
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Comunidad de propietarios - Owners Community
Group of all the owners of a building or urbanization.
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Costes del registro de la propiedad - Property registry fee.
Cost of the inscription of the mortgage in the property registry.
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Cuota - Monthly payment
This is the amount of money paid back on a monthly basis. We recommend that your monthly mortgage payments should not exceed 35% to 40% of your net monthly income.
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División en propiedad horizontal - Property division
Is used to divide a building or urbanization into various independent properties. Each will be assigned a coefficient and will be registered with the property registry.
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Diferencial
Fixed amount that is added to the variable amount to calculate the interest applied to a mortgage.
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Escritura pública – Property deed
The escritura publica is the Spanish Equivalent of the UK's registered property deed. It is the document that establishes who owns a property.
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Euribor- Euro Interbank Offered Rate
Is a daily reference rate based on the average interest rates at which banks offer to lend unsecured funds to other banks in the euroland.
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Finca - Registered Property
Official term referring to any urban or rustic property that can be registered on the property registry
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Fianza - Deposit
Is the amount paid in advance in order to reserve a property
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Garantía personal - Personal guarantee
Capital assets of the client
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Gastos de notaria – Notary fees
Cover the costs and charges of the Notary.
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Gastos de gestoría – Deed arrangement fees
Cover the costs of preparing the title deeds and payment of all taxes related to the purchase.
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Gastos de registro – Registry fees
Fees related to the inscription in the property registry.
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Hipoteca – Mortgage
A mortgage is a loan provided by a financial institution for the purchase of a property.
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IBI - Impuesto de Bienes Inmuebles - Municipal Property Tax
Refers to the yearly municipal property tax on all property owned.
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Impuesto Actos Jurídicos Documentados (also known as AJD - Stamp Duty)
It is the stamp duty and is normally of 1% of the price of the property and is to be paid buy the buyer.
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Impuesto de Transmisiones Patrimoniales – Property transfer tax
This tax applies to second hand properties and is of 6 or 7% and is to be paid buy the buyer
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Additional interest that is charged on the mortgage payments that are behind schedule.
Interés de demora – Interest for non payment
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Índice de referencia – Interest rate reference
Are set by the Banco de España and are used to calculate the interest rates for variable interest mortgages
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Interés fijo – Fixed rate
It is the interest rate that is set when the mortgage is taken out and that remains the same for its whole duration. The client has the knowledge that the conditions of the mortgage and monthly payments will always remain identical.
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Interés variable – Variable rate
This means that mortgage repayments vary according to the base rate set by the European central bank. The client can never be sure what their future payments will be.
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IVA -VAT
Tax to be paid on the purchase of new build properties. Is of 7% of the property price.
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Licencia de obra – Building licence
Licence granted by the town hall allowing the construction of (or changes to) a building.
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Notaría – Notary
Public official who plays a neutral role in drafting and witnessing different types of contracts in Spain. Their duty is to ensure that both parties agree and understand the terms of the contract, that the terms of the contract do not contravene any laws, and to ensure that the appropriate taxes generated by the transaction are paid.
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Novación – Novation
Changes legally made to the agreed interest rate or duration of the mortgage.
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Periodicidad – Frequency
Is the frequency at which you will repay your mortgage. We recommend that you match it to the frequency you receive your income.
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Periodo de revisión- Interest rate revision frequency
Applies to variable interest rate mortgages. It is the frequency at which your interest rate is revised. Usually takes place biannually or annually.
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Plazo de amortización – Lifetime of a mortgage
It is the amount of years agreed by both parties in order for the loan to be totally refunded.
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Prestatario – Borrower
Person who takes out a mortgage and assumes responsibility of making all the payments due.
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Registro de la propiedad – Property Registry
Public office that look alter tracking and registering all new properties and all changes to existing properties (ownership, situation, etc…).
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Seguro de amortización – Mortgage payment insurance
This is not compulsory but is recommended in order to cover the payments of your mortgage in case of death or disability.
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Seguro de incendios para viviendas – Property insurance
According to Spanish law, it is compulsory to take out insurance to cover your newly purchased property against fire, explosions, lightning, etc…This is normally provided by the lending financial institution and will incur extra costs. The contract will be signed at the same time as the mortgage.
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TAE (Tasa anual equivalente) – APR
It is the actual cost of the operation. The amount is calculated with the annual interest and the cost of the mortgage. The lower it is the better.
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Tasación – Valuation
Official valuation of the property on behalf of the bank done by an independent Property Valuer.
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Tipo de interés – Interest rate
Percentage applied to the pending mortgage amount due in order to calculate the interests to be paid.
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Verificación registral – Property Registry check
Allows the checking of the legal situation of the property.
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