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.