Mortgage in Spain: Who Can Get a Home Loan and How

Choosing a Bank and Key Requirements

It is recommended to contact banks that have experience working with foreigners and offer favorable terms. 

These banks are known for their loyalty, reasonable interest rates (on average 2.8–4.5% per year), and low processing fees:

Banco Santander

La Caixa

Banco Sabadell

Important: before you start searching for a property, it is better to obtain a mortgage pre-approval from the bank. This will allow you to know your exact budget and save time. Typically, the bank requires a 30–40% down payment of the property value, and provides a loan for the remaining amount.

Required Documents

To obtain a mortgage, you will need to provide the following documents:

Income statements for the past year or, even better, for the last 3–5 years if your income has been high. If you are self-employed (autónomo), provide your tax returns for previous years and quarterly tax reports.

Tax return: a document confirming that your taxes have been paid.

Credit history report: a certificate confirming that you have no outstanding loans/debts in your home country.

Passport: a copy of your passport.

Proof of funds legalization: Spanish banks do not like cash, so it is better to transfer funds electronically from your bank account in your home country.

Additional Costs

When taking out a mortgage, you must also consider additional costs:

Tax: Property transfer tax. The amount varies depending on the autonomous community in Spain and additional factors such as the buyer’s age, family size, etc. For example, in the Valencian Community it is 10% of the property value.

Registration costs: these include notary fees (around €1,000), land registry fees (around €500), and lawyer’s fees (€1,200–€1,300).

Mortgage-related costs: property valuation (€300–€400), property insurance and life insurance (around €500 per year).

Thus, when purchasing a property worth €200,000, additional costs can reach up to €26,000.

Important Details!

Your monthly mortgage payment should not exceed 35% of your total income.

Responsibility

Always make sure that your bank account has enough funds to cover regular payments (mortgage, utilities, insurance) several months in advance. Any delays can negatively affect your credit history.

Sale by Power of Attorney

Real estate in Spain can be sold remotely using a power of attorney issued and apostilled in your home country.

Our company handles mortgage transactions. We will help you prepare all the necessary documents and obtain a mortgage from the bank. Contact us!