Property Buying Glossary
Every term you'll encounter when buying property on the Costa del Sol — explained in plain English.
AJD
AJD (Actos Juridicos Documentados) is a Spanish stamp duty that applies to transactions documented in a public deed before a notary, including new build property purchases. In Andalusia (which covers the Costa del Sol) the AJD rate is currently 1.5% of the purchase price. It is paid on completion day alongside VAT. AJD applies to new build purchases; resale properties pay Transfer Tax (ITP) instead.
AJD Tax (Actos Juridicos Documentados)
AJD stands for Actos Juridicos Documentados, which translates as Documented Legal Acts. It is a form of stamp duty charged on the notarisation of official documents in Spain, including mortgage deeds and, in some regions, new-build purchase deeds. The rate varies by autonomous community. In Andalusia, which covers the Costa del Sol, the AJD rate on new-build properties is 1.2 per cent of the purchase price, applied on top of the 10 per cent VAT (IVA) already charged on new homes.
Community Fees
Community fees (cuota de comunidad) are regular charges paid by all property owners within a residential development or building to cover the maintenance and operation of shared facilities and common areas. These include the maintenance of gardens, pools, lifts, security, cleaning of common areas, building insurance, and the management company fees. Community fees in Costa del Sol typically range from 100 to 500 euros per month depending on the level of facilities.
Completion
Completion in Spanish property buying refers to the final stage of the purchase process when the title deed (escritura publica) is signed at the Spanish notary. On completion day the buyer pays the outstanding balance of the purchase price, pays applicable taxes (VAT on new builds), signs the title deed in the presence of the notary, and receives the keys to the property. The title deed is then registered at the Land Registry.
New Build Property
A new build property is a residential property that has been recently constructed and has not been previously owned or occupied. In Spain new builds are typically sold with a 10-year structural guarantee (garantia decenal), full energy certification, and all modern building standard compliance. New build purchases are subject to VAT (10%) rather than Transfer Tax (ITP) which applies to resale properties.
Nota Simple
A nota simple is an official summary document from the Spanish Land Registry (Registro de la Propiedad) that shows the current ownership details of a property, any mortgages or charges secured against it, any restrictions on the title, and the cadastral reference. It is the most important due diligence document for any property purchase in Spain.
Private Purchase Contract
The Private Purchase Contract (Contrato Privado de Compraventa or PPC) is the main legal agreement between a buyer and developer in an off-plan property transaction. It sets out all the terms of the sale including the purchase price, full payment schedule, completion date, property specification, bank guarantee obligations, penalties for delay, and dispute resolution. It is signed after the reservation stage and typically involves payment of 10% to 30% of the purchase price.
Property Valuation (Tasacion)
A property valuation, known in Spanish as a tasacion, is an independent assessment of a property's market value carried out by a certified appraiser (tasador) who is recognised by the Bank of Spain. The valuation is based on comparable sales in the area, the physical condition of the property, and its location. In Spain, lenders use this figure rather than the agreed purchase price to determine how much they will lend.
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