Quite similar to most advanced economies, Spain also has very developed mortgage market with numerous lenders offering, for most people, often confusing variety of mortgages. “SUN SEA LIFE” aims to present you here with general information, simplify and make the requirements, process and costs more understandable. We do not offer any automated or on-line ‘Mortgage Calculator’. This can often be misleading since mortgage and repayments depend on lenders and variety of other personal factors, not just sum borrowed,
deposit, length of borrowing term or type of interest applied. Generally, mortgages in Spain are differentiated based on your residency status and if you are coming from an EU member state or not.
Typical mortgage costs and fees in Spain
Please be aware that banks might add these costs and fees to your mortgage, however they will not allow the total amount of borrowing to go over the maximum loan to value
percentage.
| Non-Resident Standard Mortgage | Spanish Resident Mortgage |
| Maximum loan to the value of 70% Maximum Term 25 years or up to the age of 75 Fixed or Variable Rates | Maximum loan to the value 80% Maximum Term to age 75 Fixed or Variable Rates |
Bank Arrangement Fee: Between 0.5% – 1.5% of the loan amount
Property Valuation Fee: Between € 300 – € 500
Taxes: These will be advised on application
Legal Fees: about € 600
Notary Fee: about € 900
Life Insurance: Life insurance premiums differ depending on age, health and term of policy
Standard mortgage application documentation requirements
When applying for a mortgage, there are several documents both your mortgage adviser and your mortgage lender will need to see. These documents confirm your identity and provide proof of your income. We would well advise you to have all these documents to hand prior to your mortgage appointment. This will enable your mortgage adviser to provide mortgage advice based on your exact personal circumstances as quickly and as precisely as possible. Depending if you are self-employed or employed by someone, the table below is designed to show in most simple terms what would be documentation requirements you would need to prepare and present.
| Passport / National Identity Document and / or NIE | Tax Declaration (last 2 years) or Tax Return | Credit Report and Bank Statements | Letter From a Certified Accountant and Proof of Income | Contract of Employment and Last 3 Salary Pay Slips |
| Self-Employed ✓ Employed ✓ | Self-Employed ✓ Employed ✓ | Self-Employed ✓ Employed ✓ | Self-Employed ✓ Employed X | Self-Employed X Employed ✓ |
| You will need “Proof of Identity” documentation in order to apply for a mortgage. This is simply to confirm that you are who you say you are. This may take the form of a “Passport” and/or other “National Identity Documentation”. | A mortgage lender will want to look at any tax returns to verify the borrower’s income. A relevant tax return document will be needed in order to satisfy this requirement. It may have to be officially translated in to Spanish and verified. | Your credit report, sometimes referred to as your credit file or credit history, is a detailed record of all your credit and debt accounts. It contains information about how much debt you have, how often you pay your credit and debt bills on time, and how long you have been managing your credit accounts. | Self-employed mortgage applicants may well be asked to provide accounts prepared by a certified or chartered accountant, to prove your income and enable the lender to make a decision. How those accounts are presented can have a major impact on how much you might be able to borrow. | Before any lender will agree to offer you a mortgage, they will want to see evidence that you will be able to make your monthly payments for the duration of your deal. That means that you will need to provide proof that you have regular guaranteed income in the form of an employment contract or a letter from your employer confirming your employment status. |
| NIE is translated as the Foreigner’s Identification Number (or Número de Identificación de Extranjero, NIE number). NIE number is a legal, fiscal number that is assigned by the Spanish National Police to foreign residents who do not have Spanish citizenship. This number allows foreign nationals to carry out legal activities in Spain. | Please note: Pensioners would require a letter from the company paying the pension confirming the annual income paid to the pensioner(s) | You will need to supply the last 6 months bank statements from all accounts, (savings or investments) you may have. The mortgage lender will want to know everything about your current financial situation. They want to know how much money you have in the bank, and how long it has been in there. This is known as asset verification. This is the primary reason why mortgage lenders need to look at your bank statements. They want to ensure that you have enough money in your account(s) to cover your down payment, your closing costs, and (in some cases) the first few mortgage payments. | Self-employed people will need to provide proof of income tax payments made during the current financial year along with a declaration of any assets. Annual Statement of Accounts is a technical document that includes all the financial statements and disclosures during that financial year. You will need to provide this documentation for the last 2 years and include any profit or loss accounts. | A mortgage lender will want to see your last 3 pay slips to verify that your stated salary is correct |