Spanish abbreviations & terms

IRNRFull name:Impuesto sobre la Renta de No ResidentesShort explanation: Tax scheme for non-residents with income in Spain (e.g. rental) and/or flat tax for second residence (depending on situation).💡 Tip: Non-resident + rental = often periodic returns (not “once and done”).⚠️ Warning: IRNR is one of the most overlooked obligations among foreign owners.

IRPFFull name:Impuesto sobre la Renta de las Personas FísicasShort explanation: Spanish personal income tax (for residents). Becomes relevant once you are a tax resident in Spain.💡 Tip: Becoming a resident changes your tax game rules - get simulated beforehand.

ISDFull name:Impuesto sobre Sucesiones y DonacionesShort explanation: Inheritance and gift tax in Spain. Regional rules and exemptions vary greatly.💡 Tip: Succession planning in Spain is often region- and structure-dependent.

ITPFull name:Impuesto sobre Transmisiones PatrimonialesShort explanation: Transfer tax when buying an existing property. Rate varies by autonomous region.💡 Tip: Check regional discounts/rules before signing.⚠️ Warning: ITP can be calculated on tax reference value, not just purchase price.

IVA Full name:Impuesto sobre el Valor AñadidoShort explanation: VAT in Spain. Especially relevant for new construction (houses often 10%, exceptions exist).💡 Tip: New construction = usually IVA (+ sometimes AJD). Existing construction = usually ITP.

Licencia de Primera Ocupación (LPO)The Licencia de Primera Ocupación is the municipal licence that confirms that a property may be officially put into use (often in new builds and sometimes after major renovations).💡 Tip: Always ask if the LPO is present before signing - this prevents problems with utilities and sales later.⚠️ Warning: Missing LPO may Read More

LPOFull name:Licencia de Primera OcupaciónShort explanation: Permit/final approval that a property may be officially put into use (important in new construction and sometimes remodelling).⚠️ Warning:Missing LPO can cause problems with utilities, legality and (re)sale.

LTFull name:Loan-to-ValueShort explanation: Percentage of home value that the bank finances.💡 Tip: LTV is often calculated on appraisal value, not purchase price.

NIEFull name:Número de Identidad de ExtranjeroShort explanation: Unique identification number for foreigners. Needed for purchases, banking, taxes and contracts.💡 Tip: Apply for your NIE before you sign an offer; it speeds up banking and notary work.⚠️ Warning: Without an NIE, your file may get stuck (opening account, taxes, notary).

NIFFull name:Número de Identificación FiscalShort explanation: Tax identification number. For foreigners, this is usually your NIE used as a tax number.💡 Tip: In forms, you often see “NIF/NIE” - this is normal in Spain.

Nota SimpleThe Nota Simple is an informative extract from the Registro de la Propiedad with owner, description of the property and registered charges (e.g. mortgage, embargo, easements).💡 Tip: Always ask for a recent Nota Simple before you sign (and again just before the notary).⚠️ Warning: Without Nota Simple, you may unknowingly buy a property with debts Read More

Ocupación (Ocupas)Ocupación refers to (illegal) occupation of a property by okupas. This is a risk issue with vacant properties.💡 Tip: Reduce risk with alarm system, regular monitoring, proper insurance and quick follow-up when a property is vacant.⚠️ Warning: Procedures can take time. When buying: always check whether the property is effectively vacant and have this clearly stated in the Read More

OSFull name:Operaciones SocietariasShort explanation: Component within ITP/AJD that can affect company operations (e.g. capital increase, certain restructurings).💡 Tip: Especially relevant if you buy through a company or work with a company in Spain.

PGOU (Plan General de Ordenación Urbana)The PGOU is the municipal urban development master plan: it defines what can be built where, which zones are protected and what developments are planned.💡 Tip: Check the PGOU before purchase if you want to remodel, expand, rent or make sure that the surrounding area does not change drastically.⚠️ Warning: A change in zoning Read More

Plan General de Ordenación Urbana (PGOU)The PGOU is the municipal urban development master plan: it defines what can be built where, which zones are protected and what developments are planned.💡 Tip: Check the PGOU before purchase if you want to remodel, expand, rent or make sure that the surrounding area does not change drastically.⚠️ Warning: A change in zoning Read More

Plusvalía (Plusvalía Municipal)Plusvalía municipal is a local tax that the municipality charges when selling/transferring a property, based on the (assumed) increase in value of the land since the previous transfer.⚠️ Always check who pays (seller/buyer) and ask for an indication of the amount before signing.

RCFull name:Referencia CatastralShort explanation: Cadastral reference/ID of the property in the Catastro register. Often used for taxes (such as IBI) and administrative searches.💡 Tip: Put RC in your purchase file by default; it speeds up checks.

Registro de la PropiedadThe Registro de la Propiedad is the official property register. It contains the registered owner, mortgages, embargoes and other charges.💡 Tip: A Nota Simple comes from this register and is the quick check before purchase.⚠️ Warning: “What is not registered” can cause surprises later; always combine this with legal and urbanist research.

RPFull name:Registro de la PropiedadShort explanation: Property register where property, mortgages and charges are officially registered.💡 Tip: Combine RP check with a Nota Simple before signing.

SegregaciónSegregación is the splitting of one property/parcel into several (e.g. dividing one large flat into two units, or dividing land).💡 Tip: Check urban feasibility as well as community rules (in the case of flats) before buying with a “split plan”.⚠️ Warning: Without proper permits/registration, you cannot legally sell, rent or connect split units later.

SEPAFull name:Single Euro Payments AreaShort explanation: European payment system for standard euro transfers and direct debits.

ServidumbreA servidumbre is an easement: a right or restriction on a plot of land (e.g. right of way, pipes, sight/height restriction).💡 Tip: Take a look at the Nota Simple and request plan info from the municipality to understand what the servidumbre means in practice.⚠️ Warning: Servidumbres can affect alterations, extensions or privacy (e.g. path next to your garden).

TAEFull name:Tasa Anual EquivalentShort explanation: Annual percentage rate of charge including certain costs. Often better for comparing mortgages/offers than TIN.💡 Tip: Use TAE as a “comparison meter” between banks.

TINFull name:Tipo de Interés NominalShort explanation: Nominal interest rate of a loan/mortgage (without all additional costs).⚠️ Warning: Never compare TIN without also checking TAE.

TPOFull name:Transmisiones Patrimoniales OnerosasShort explanation: Component/category within ITP that taxes “paying transfers”, such as the purchase of an existing home.💡 Tip: You often see “ITP (TPO)” in files - this refers to the same purchase context.