Mortgage loan in Spain

Not sure how to finance your dream Casa in Spain? We have prepared for you a handful of information that will easily guide you through the entire real estate financing procedure-from issues related to the Spanish banking system to the necessary documentation and formalities.

The first thing you need to know is that the Spanish financial market is open to foreign investors. When deciding to buy a property, it is worth considering the source of financing. If you don’t have the right amount of cash, you can take a mortgage in Spain offered by banks here. This is one of the most popular forms of financing by individual investors, and due to the fact that we are in the structures of the European Union, the procedures for Polish citizens are simplified to the maximum.

Buying a property in Spain in 7 steps:

Do you already know whether it will be the Costa del Sol or Barcelona? Do you have a property selected? If you are hesitating, write -we can help you match it to your needs and lifestyle. You can find the latest properties here.
Then review the banks’ offers and calculate your potential installment – our calculator on the right will help you.
Determine the terms of the mortgage.
Collect all the required documents.
Now it remains to wait for a positive decision.
Have you got it? Great! We are acting. Remember that we will help you at every stage of this process. We are there for you, both on the ground in Spain and in Poland.
All that’s left is to pay for the property, do the rest of the paperwork and pick up the keys of your dreams

Frequently asked questions

Financing issues are among the most vexing for our clients, so we have compiled a list of frequently asked questions with answers prepared by our experts. Now you can see in one place what paperwork is required for the purchase of a property financed by a mortgage taken out in Spain.

In what currency can I take out a mortgage in Spain?

Preferably in Euros. Not only, because of the simplicity of settlement, but because of the subsequent possibility of renting the property. This is a huge advantage, because your assets and liabilities are then in the same currency, increasing liquidity when repaying the loan and eliminating currency conversion costs. Of course, some Spanish banks also allow you to take loans in other currencies, such as sterling or Swedish krona. However, this involves higher debt service costs and is simply far less convenient for a Polish citizen.

What percentage of a property purchase in Spain can be financed with a loan?

However, according to the regulations of June 17, 2019, non-residents can take out a loan for up to 70% of the property price. On the other hand, if you had the status of a resident, residing in the country for more than 183 days a year, you can expect to receive a loan of up to 80% of the property purchase price.

How much do I need to earn to get a mortgage in Spain?

According to the regulations, the monthly installment cannot exceed 35% of the borrower’s income. That is, if you earn at the level of 2 thousand euros, the loan installment can be a maximum of 700 euros. A popular option among our customers is also the purchase of real estate jointly by several people who have a fixed income.

How long do I have to wait for a decision on whether I will get a loan?

Typically, the time from application to credit decision in Spain is 10-14 days. Here it is worth remembering one thing. During this process, our property must be valued by an independent company or official acting on behalf of the bank, and unfortunately, we will be the ones to pay for this service. This is generally a cost of 1-2% of the loan granted.

What documents are needed to take a loan in Spain?

It all depends on whether you are employed under an employment contract or are self-employed.

In the first case, prepare:

ID card and passport,
NIE (Número de Identificación Extranjeros) number,
proof of opening an account with a Spanish bank,
bank statement for the last 6 months,
BIK (Credit Information Bureau) statement,
PIT tax return for the last 3 years,
information on existing credit obligations,
declaration of assets and liabilities held,
information on the accumulated funds that the client intends to use to pay the contribution.

If, in turn, you are self-employed, you will need:

ID card and passport,
number NO,
proof of establishment of an account with a Spanish bank,
bank statement of the last 6 months,
company account statement from the last 6 months,
BIK statement,
PIT tax return for the last 3 years,
company tax return for the last 3 years,
information on existing credit obligations,
declaration of assets and liabilities held,
information on the accumulated funds that the client intends to use to pay the contribution.

Thinking about buying a property, location, don’t know where to start? We are for you. We will guide you through the entire process-from determining your needs, through on-site reconnaissance, to all financing formalities. We can meet in Poland or on the spot in Spain-we will be happy to show you the neighborhood and the best apartments or houses in the chosen location.
Jola & Magda

Mortgage loan in Spain