Mortgage loan in Spain
Foreigners can take a mortgage in Spain from a Spanish bank, currently the loan amount is a maximum of 70% of the net value of the property , all depends of course on the borrower’s documentation and the bank’s decision. It should also be remembered that the bank does not finance the taxes and costs of purchasing the property.Such costs oscillate with IVA tax from 12 to 15% .
The maximum age of the borrower cannot exceed 74.
With income derived from an employment contract, documents are needed:
A completed credit application in Spanish or English
Scan of employment contract [ with Spanish translation].
account history for the last 3 months [ no need to explain]
PIT for 2022 [ with Spanish translation].
BIK report in English
The bank can always ask for additional documents
When separating with a spouse, you need the document in the original with an apostille.
At a later stage of the loan processing, the bank will ask for documents regarding the property being purchased.
The initial analysis process itself is about 3-4 weeks, while the following weeks are the collection and delivery of documentation on the property, if the borrower does not have a law firm representing him, the time of obtaining documents extends for another weeks , and this may jeopardize the failure to meet the deadline for signing the deed and will result in the loss of the deposit paid by the buyer. It is important to remember that the property you are buying is outside our country , and the regulations can vary greatly. Therefore, we recommend that you sign a contract with a law firm in Spain.This will give you security and confidence that the transaction will go through.
