Getting a mortgage in Spain involves strict regulations, whether you’re a resident or non-resident. Here’s a clear breakdown of the process:

📌 1. Check Your Eligibility

✅ Basic Requirements:

  • Residents:
    • Permanent work contract or stable income (self-employed must show 2+ years of activity).
    • Clean credit history in Spain (no defaults in ASNEF/RAI).
  • Non-Residents:
    • Provable income in your home country (payslips, tax returns).
    • Higher down payment (40-50% vs. 20-30% for residents).

📉 Maximum Debt-to-Income Ratio:

  • Banks typically approve installments that don’t exceed 30-35% of your net monthly income.

📌 2. Compare Banks & Mortgage Offers

🔍 Key Factors:

  • Interest Type: Fixed (2.5-4%), variable (Euribor + spread, e.g., Euribor +1%), or mixed.
  • Loan Term: Up to 30 years (40 for borrowers under 35 with some banks).
  • Fees: Arrangement (1-2%), early repayment (0.5-2%).

💡 Tip: Use comparison tools like HelpMyCash or iAhorro to analyze offers.


📌 3. Get Pre-Approved

📋 Required Documents:

  • Residents:
    • DNI/NIE, last 3 payslips, tax return, employment contract.
  • Non-Residents:
    • Passport, income proof (translated & apostilled), credit report from home country.

🔄 Process:

  • The bank assesses your profile and issues a pre-approval letter (valid for 3-6 months).

📌 4. Property Search & Due Diligence

🏠 Property Requirements:

  • Must be a primary residence (banks rarely finance 100% for second homes).
  • Mandatory bank appraisal (cost: ~€300-600, paid by buyer).
  • Ensure no liens or debts (a notary checks the Land Registry).

📌 5. Sign the Mortgage Before a Notary

📜 Final Steps:

  1. Sign the purchase deed (buyer, seller, and notary).
  2. Sign the mortgage deed (bank transfers funds to the seller).
  3. Register at the Land Registry (takes 2-4 weeks).

💰 Closing Costs (8-12% of property value):

  • Transfer Tax (ITP): 6-10% (resale) or VAT 10% (new build).
  • Notary & Registry Fees: ~€1,000-2,000.
  • Arrangement Fee: 1-2% of loan amount.

📌 6. Start Repayments & Insurance

💳 Monthly Payments:

  • Automatically debited from your account.
  • Mandatory Insurance:
    • Home insurance (fire/damage coverage).
    • Life insurance (often required).

⚠️ Key Considerations

✔ Non-Residents: Some banks require a Spanish salary account (e.g., Santander, BBVA).
✔ Euribor: If choosing a variable rate, check trends (currently ~3.5% in 2024).
✔ Re-mortgaging: Possible after 1-2 years to improve terms.


🔗 Helpful Resources

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