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. 

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