Getting a mortgage in Spain
No matter if you are seeking to invest in real-estate in Spain professionally, or buying a primary residency or a holiday home in Spain, the Spanish banks can provide you with a mortgage if you can show that your debt-to-income ratio is acceptable.
The requirements for getting a mortgage in Spain vary depending on the bank and the origin of the clients, but generally non-residents may obtain funding of between 50% and 70% of the appraised value (or sales price if it is lower than the appraised value), for a maximum term of 25 years (lesser terms apply for senior citizens), as long as the monthly payment does not exceed 30 % of your income after payment of fixed expenses. The interest rates for non-residents when getting a mortgage will be somewhat more expensive compared to the interest Spanish residents can obtain.
FAQs on Getting a mortgage in Spain
Banks often require a large amount of documents. Thankfully, Avalaw will advice you throughout all the process, as well as carrying out all the paperwork for you.
- Your DNI/NIE number. You’ll have to get a NIE number in Spain before requesting a mortgage. Thankfully, Avalaw can help you get NIE number.
- Contract of employment or proof of solvency.
- Your last 3 payslips
- Your latest income tax return.
- Your pre-agreement with the seller
- Proof that the property tax (IBI) on the house is paid up
- Details of other mortgages or loans that you may have
- All property deeds, both in Spain and overseas
- Certificate from work authorities (vida laboral), showing your past work history
- Records of your current assets (bank/mutual fund statements, etc.)
- Non-residents: A certificate of nonresidency (form available from the bank)
- Prenuptial agreements, if any.
- If self-employed: Local tax on economic activities (IAE)
- If self-employed: Records of your assets during the last two years
- If self-employed: VAT tax you paid for the last quarter and last year
Although the figures may vary, the amount the lenders tend to give equals the 60% to 70% of the property value. However, you can find lenders offering up to 80% of the property value.
¿Having more doubts? ¡Contact us and book a free consultation with our lawyers!