Mortgage loan in Spain

There are many websites and platforms where you can find property listings in Spain. It is important to understand how they are described, we have some tips for you:

– remember that the prices listed are net, you should always add to them about 10%-12% (secondary market) or 13%-15% (primary market) of its value. These include VAT, the cost of legal and notary fees, or costs dependent on the Autonomous Community

– the number of rooms stated in the ad, is the number of bedrooms, you should always implicitly remember the additional living room, which does not appear in the body of the offer

– the state of development in Spain is different from the one we know from Poland. Our property from the primary market will have finished floors, kitchen (often with appliances) and bathrooms, already installed interior doors and built-in cabinets.

If we buy at an early stage of construction, we will have the opportunity to choose finishing materials from the developer’s specified range of products.

1. Passport or identity card
   Foreigner Identification Number (N.I.E.). Equivalent to the Polish PESEL number, we will need it for many bureaucratic activities or even in everyday life, such as picking up a package at the post office, and most importantly for opening a bank account. Application for this number can be made either in Poland at the Embassy of the Kingdom of Spain in Warsaw or in Spain at a police station.
   Documents proving financial capacity, i.e. bank statements, deposit slips and other financial information, and in the case of a mortgage, its bank confirmation.
   In the case of property separation, this certificate will also be necessary
   Certificates of no tax arrears
   And finally, the purchase and sale agreement or reservation agreement in order to establish an account with a Spanish bank

Yes, Spanish banks provide mortgages to non-residents, i.e. those with sources of income outside Spain (within the European Union), up to 70% of the purchase sum. The documentation required to apply for such a loan is largely similar to Polish requirements. You can learn about the details of this type of financing in our tab: https://casainspain.com.pl/kredyt/

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.

The phenomenon of wild tenants occupying a property illegally keeps us awake at night, but there are ways to protect ourselves from this practice, and its downward trend compared to previous years indicates that the changes introduced in Spanish law are reflected in reality.

We write about it in more detail here: https://casainspain.com.pl/hello-world/

Here are some practical tips that, if followed, can help minimize the risk of the “ocupas” problem and protect your property from unwanted foreclosures:

Purchase a property in a gated estate, a building with security, concierge services
Cooperation and good relations with neighbors, they are the ones who can notice suspicious activity and notify you in time.
Knowing the neighborhood and familiarizing yourself with the surroundings with the help of trusted real estate agents and having adequate knowledge of the local real estate market
In some cases, especially when the property is unoccupied for an extended period of time, it is worth considering monitoring systems for constant surveillance of the area, such as security companies, surveillance cameras, outdoor lighting or alarm systems can help prevent unauthorized access to the property.
Renting while the owners are away and using the property regularly can help prevent third parties from trying to occupy it.
Taking care of property documents, such as title deeds, rental agreements l