Getting a mortgage to buy a house in Spain is not difficult. However, if you get a mortgage with a Spanish bank, you may get lost with the Spanish vocabulary. From TAE to AJD or ITP, many words will be new, destabilizing.
So, what Spanish mortgage terms should you know?
Vocabulary / Glossary – Spanish mortgage
The vocabulary below contains many words you will come across, when getting a mortgage to buy in Spain:- Hipoteca = mortgage
- TAE = TAE means Tasa Anual Equivalente. Typically, à Spanish bank will give you the “tipo de interes nominal” as well as the TAE. The TAE includes all costs, so it’s the interest rate you must consider
- Cuota mensual = monthly repayment
- Comision de amortización anticipada = early repayment fee
- Oferta Vinculante = offer in principle
- Tipo fijo = fixed interest rate
- Tipo variable = variable interest rate
- Simulador de hipotecas = compare best mortgage deals
- Euribor = Euribor is short for Euro Interbank Offered Rate. The Euribor rates are based on the interest rates at which a a panel of European banks borrow funds from one another.
- Plazo total en años = duration of the mortgage, in years
- Comisión de apertura = fee for the mortgage creation
- Tasación = real estate valuation
- Notaria = notary
- AJD = mortgage tax or AJD (Actos Juridicos Documentados) tax
- ITP = ITP (Impuesto sobre Transmisiones Patrimoniales) stands for Property Transfer Tax
- Gestoría = the gestoría handles tax payments and paperwork to formalize the deeds of the property and mortgages
- IVA = value added tax
- Gastos = fees, costs
For more information on Spanish mortgages, check the dedicated section (click here)
