A mortgage in Spain – let us help you find the right financing

A Spanish bank typically lends a non-resident 60–70% of the purchase price or of its own valuation, whichever is lower. The rest and the costs of the sale come from your own funds, so find your borrowing limit before you fall for a property.

1. Preliminary approval. The bank assesses your paperwork and tells you the amount you can search with.
2. NIE number and a Spanish bank account. Both are needed for the purchase, and the NIE takes time, so start it early.
3. Reservation and preliminary contract. The property is reserved with a fee, then a preliminary contract (contrato de arras) is signed. The deposit is usually about 10% of the price.
4. The bank's valuation. The bank commissions an official valuation (tasación) and sizes the loan on it.
5. Formal loan offer. The bank issues a binding offer (FEIN). You have at least ten days to consider it, and the terms are explained at the notary before you sign.
6. Signing at the notary. The deed and the mortgage are signed in one visit, then registered.

From application to signing usually takes 6–10 weeks.

The bank wants to see where your income comes from and what you already owe. A buyer is usually asked for:

• passport and NIE number
• the last two years' tax returns
• three to six months of payslips and an employment contract – a pension statement for retirees, two years of accounts for the self-employed
• bank statements for the last 3–6 months
• a statement of other loans and their repayments
• proof of the funds for the deposit and the costs of the sale

Some banks want documents translated into Spanish by a sworn translator. We tell you in advance which ones, so nothing is fetched twice.

The costs of the sale come on top of the price. A rule of thumb on the Costa Blanca is 12–14% of the price:

• Resale: transfer tax (ITP) – 10% in the Alicante province, 8% in Murcia.
• New build: VAT at 10% plus stamp duty (AJD) – 1.5% in the Valencian region, 2% in Murcia.
• Notary and land registry: about 1–1.5% together.
• Lawyer: usually about 1% plus VAT. We always recommend your own lawyer, on new builds too.
• Loan costs: the bank's valuation about €300–600 and any opening fee. In Spain the bank, not the borrower, pays the stamp duty on the loan.

After the purchase, running costs are property tax (IBI), community fees, water and electricity, and a yearly income tax return for non-residents (modelo 210).