Mallorca Real Estate Glossary: NIE, ITP, Nota Simple, Catastro &…

Mallorca Real Estate Glossary

When buying property in Mallorca, many Spanish technical terms arise that can be crucial for price, taxes, ownership, usability, and risks. This glossary explains the most important terms for international buyers and helps to better classify documents and conversations with agents, lawyers, notaries, banks, and authorities.

Term	Meaning	What buyers should look out for
NIE	Identification number for foreigners in Spain.	Apply early; relevant for notary, taxes, bank, registry, and utilities.
ITP	Tax on onerous transfers, typically for resale properties.	Have the tax base and applicable rate checked before signing.
IVA	Value Added Tax, often applicable when buying new properties from developers.	Distinguish whether IVA or ITP applies; the specific delivery is decisive.
AJD	Tax on certain notarial, registerable documents.	Relevant for new construction purchases, Obra Nueva, División Horizontal, or mortgages.
IBI	Municipal property tax on real estate.	Check the latest receipt; it often contains the cadastral reference and shows ongoing costs.
Nota Simple	Informative land registry extract about the property, owners, rights, and encumbrances.	Always obtain a current one; in sensitive cases, a Certificación may be necessary.
Catastro	Administrative register with location, area, use, cadastral value, and reference value.	Do not confuse with the land registry; clarify discrepancies before closing.
Escritura	Notarial deed of purchase.	Central for property transfer and land registration, but not a substitute for technical inspection.
Cédula de Habitabilidad	Certificate of habitability or usability.	Check validity, type, address, and consistency with actual use.
Licencia de Obra	Building permit or official authorization for construction and renovation works.	Especially important for new builds, extensions, pools, and changes of use.
Arras	Deposit or pre-contract model in Spanish property purchase.	Clearly regulate deadlines, withdrawal consequences, financing, and due diligence.
Usufructo	Usufruct or registered right of use.	Can significantly affect use and sale; clarify cancellation or assumption.
Comunidad	Homeowners' association for buildings or facilities with common property.	Check minutes, bylaws, contributions, special assessments, and debt certificate.
Rústico	Rural land with special planning and protection regime.	Check buildability, legality, minimum plot size, water, access, and protection categories.
Urbano	Urban planning area or building land.	Urbano does not automatically mean approvable; check planning law and permit status.
Valor de Referencia	Reference value determined by the Catastro for tax purposes.	Retrieve before purchase and reconcile with purchase price, financing, and tax planning.

Application Notes for Buyers

Do not read documents in isolation

A secure purchase review arises only from cross-referencing multiple sources: Nota Simple, Catastro, Escritura, IBI, Cédula, urban planning information, construction documents, and the actual condition of the property.

Calculate tax terms early

ITP, IVA, AJD, and Valor de Referencia directly affect ancillary costs. Especially for new builds, resale properties, land, corporate purchases, Rústico properties, or mixed uses, the classification should be checked.

Handle Rústico with particular caution

Many attractive fincas are on Rústico. Especially there, legality, permit history, extensions, pools, access roads, water rights, and utility connections must be carefully examined.

Set clear conditions before Arras

An Arras document can be binding. Buyers should specify before payment which documents will be reviewed, which conditions must be met, and what consequences arise if financing, permits, or registry issues do not go as expected.

Frequently asked questions

What is the difference between ITP, IVA and AJD when buying property in Mallorca?

ITP is the tax on transfers for consideration, typically on resale properties. IVA is value added tax, often on buying new properties from a developer. AJD is the tax on certain notarial, registrable documents, relevant for example for new-build purchases, Obra Nueva, División Horizontal or mortgages. The specific supply is decisive.

What is a Nota Simple in Mallorca?

The Nota Simple is an informative land register extract on the finca, owners, rights and encumbrances. It should always be obtained fresh. In sensitive cases, a Certificación may be necessary.

What is the difference between the Catastro and the land register in Mallorca?

The Catastro is an administrative register with location, area, use, cadastral value and reference value. The land register shows owners, rights and encumbrances. The two must not be confused, and discrepancies should be resolved before completing the purchase.

What does Rústico mean for a property in Mallorca?

Rústico refers to rural land with a special planning and protection regime. Many attractive fincas are on Rústico land. Buyers should check buildability, legality, minimum plot sizes, water, access and protection categories there.

What does Arras mean when buying property in Mallorca?

Arras is a deposit or preliminary contract model in Spanish property purchases. An arras document can be binding. Before paying, buyers should therefore determine which documents are to be checked, which conditions must be met and what consequences follow if financing, permits or register matters turn out differently.

What is the Cédula de Habitabilidad in Mallorca?

The Cédula de Habitabilidad is proof of the habitability or usability of a property. Buyers should check its validity, type, address and consistency with actual use.