Real estate terms explained

Question 1

What does ITP mean and how does it differ per region?

Answer

ITP (Impuesto sobre Transmisiones Patrimoniales) is the Spanish transfer tax on resale property: 6% in Madrid, 7-8% in Andalusia, 10% in Catalonia and Valencia, 8-13% progressive in the Balearics (as of Q2 2026, source: agenciatributaria.gob.es). New-build is exempt from ITP but subject to 10% IVA + 0.5-1.5% AJD stamp duty. Rates are levied by the autonomous region, not the national government.

Question 2

What is an NIE number?

Answer

NIE stands for Número de Identificación de Extranjero — a Spanish tax identification number for foreigners. Required for every property transaction, mortgage application and to open a Spanish bank account. Lead time 2-6 weeks via Spanish consulate in the Netherlands or a lawyer in Spain (as of Q2 2026, source: exteriores.gob.es).

Question 3

What does freehold mean in Dubai?

Answer

Freehold = full ownership. Since 2002 Dubai has 50+ designated freehold zones where foreigners can take full ownership of land and structure, with free succession and unlimited sale/rental (as of Q2 2026, source: dubailand.gov.ae). Outside freehold zones, only leasehold structures of 10-99 years are possible for non-Emiratis.

Question 4

What does ITP mean and how does it differ per region?

Answer

ITP (Impuesto sobre Transmisiones Patrimoniales) is the Spanish transfer tax on resale property: 6% in Madrid, 7-8% in Andalusia, 10% in Catalonia and Valencia, 8-13% progressive in the Balearics (as of Q2 2026, source: agenciatributaria.gob.es). New-build is exempt from ITP but subject to 10% IVA + 0.5-1.5% AJD stamp duty. Rates are levied by the autonomous region, not the national government.

Question 5

What is an NIE number?

Answer

NIE stands for Número de Identificación de Extranjero — a Spanish tax identification number for foreigners. Required for every property transaction, mortgage application and to open a Spanish bank account. Lead time 2-6 weeks via Spanish consulate in the Netherlands or a lawyer in Spain (as of Q2 2026, source: exteriores.gob.es).

Question 6

What does freehold mean in Dubai?

Answer

Freehold = full ownership. Since 2002 Dubai has 50+ designated freehold zones where foreigners can take full ownership of land and structure, with free succession and unlimited sale/rental (as of Q2 2026, source: dubailand.gov.ae). Outside freehold zones, only leasehold structures of 10-99 years are possible for non-Emiratis.

Real estate terms explained

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Frequently asked questions

What does ITP mean and how does it differ per region?

What is an NIE number?

What does freehold mean in Dubai?

Continue your research

Buying property in Spain as a Dutch resident

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Real estate terms explained

Guides

Related topics

Frequently asked questions

What does ITP mean and how does it differ per region?

What is an NIE number?

What does freehold mean in Dubai?

Continue your research

Buying property in Spain as a Dutch resident

Mortgage calculator Spain & Dubai

Frequently asked questions