Mortgage Loans
The Spanish market is open to foreign clients and investors, offering a wide selection of instruments for purchasing real estate.
The most popular include:
Cash
A traditional method without external financing.
Mortgage loan in the country of residence
Concluded, for example, in a bank in Poland.
Mortgage loan in the country of property purchase
Offered by Spanish banks.
Personal loan
With a shorter repayment term and security, e.g., in the form of property owned in Poland.
Among these, individual investors most often choose a mortgage loan from a Spanish bank. Due to the presence in the EU structures, Polish and EU citizens benefit from relatively friendly financing procedures.
Steps to obtaining a loan in Spain
Contact us by phone or WhatsApp to outline your expectations and get additional information.
After you gather and email the documents, we analyze the possibilities of obtaining a mortgage loan.
Knowing your creditworthiness, you can select a property that meets your needs.
After signing a reservation or preliminary agreement, we can submit the application and documentation to a Spanish bank.
During the credit analysis process, which can take up to 2 months, you will be asked to provide additional information.
Upon receiving the credit decision and signing the Acta Previa al Otorgamiento de prestamo Hipotecario, you will finalize the property transfer agreement.
What You Must Do & Must-Have!
Make a purchase decision
Choose a place in Spain. If necessary, visit different locations. People's needs vary. Don’t rely solely on others' opinions—see for yourself.
Set a budget
Calculate how much of your own funds you have and how much financing you’ll need from the bank. Remember to add around 13% to the price for costs in the Province of Alicante and Valencia.
Check creditworthiness
If you plan to rely on a mortgage loan in Spain, gather documents for credit analysis. Simply put, check your eligibility.
Choose a property
Select a property that suits your needs and financial expectations. More expensive or bigger doesn’t always mean better. Consult with an analyst if needed.
Gather documents
The bank will request numerous documents from a list, and translations by a certified Spanish translator will also be required.
Sign a reservation or preliminary agreement
Every dream needs to be put on paper to come true. Sign a contract for your own security.
Submit a loan application
Include all required documents with the application. Remember, the loan process in Spain can take up to 3 months!
Fill in missing information
A mortgage in Spain is much more complex than in Poland. It requires the involvement of intermediaries, accountants for tax calculations, and more. Bank employees won’t do everything for you!
Credit decision
Confirmation of loan terms is not the end; you must wait at least 10 days before going to the notary!
Free notary consultation
Unlike in Poland, before signing the property transfer and mortgage agreement, you must consult with a notary for free. Know what you’ll sign 24 hours in advance!
Sale agreement
In the presence of a Spanish notary, you will sign the ownership transfer agreement and other mortgage security agreements for the bank. The bank will process the loan payment to the seller based on the check.
Mortgages in Spain are cheaper than in Poland, but remember that:
The process of obtaining a loan is much more complicated and time-consuming than in Poland. If you don’t know Spanish or English, there are additional costs for translating some documents from the bank, such as the FEIN or Acta de Transparencia. Both in Poland and Spain, loan costs include:
Loan issuance commission
Property valuation costs
Mortgage establishment tax
Notary fees
Land registry fees for mortgage entries
But there are also differences:
Loan process duration up to 3 months
Translation costs for financial documents
Accounting fees for calculating taxes for buyer and seller
Costs related to obtaining a tax number from the Spanish Tax Office
At least 10 working days must pass from the final decision to the notarial act
And many other factors requiring a good mortgage expert!
Property Price 100,000 EUR
| Service | Cost | Notes |
|---|---|---|
| Legal Service | 1500 EUR | Recommended |
| Translation Service | 350 EUR | Recommended |
| Notary Fee | 600 EUR | 0.6% of the value - Mandatory |
| Tax | 10.000 EUR | 6% - 10% fixed rate depending on the province |
| Land Registry - Entries | 400 EUR | Approx. 0.4% - Mandatory |
| Bank-Certified Check | 338 EUR | Rate 0.375% minus the deposit paid |
Basic Loan Parameters
Loan Term
The maximum loan term does not exceed 30 years, up to the borrower’s 75th birthday.
Interest Rate
Due to the EURIBOR indicator, interest rates range from 4.4% to 6.2% annually.
Acceptable Currencies
Spanish banks accept income in EUR as well as income in other foreign currencies such as PLN, NOK, DKK, among others.
Sample monthly installments for loan amounts ranging from €150,000 to €400,000 with repayment terms of 20 and 25 years. Installments are expressed in EUR.
Additional Indicators
Loan Amount for PLN
The maximum loan amount for income in PLN is 70% of the property's value (excluding costs). It’s safer to assume 60% of the property value.
Loan Amount for EUR
The maximum loan amount for income in EUR can reach up to 80% of the property's value (excluding costs).
Fixed Interest Rate
Low fixed interest rates—currently between 3.9% and 4.9%—are available only for income in EUR, subject to bank-specific conditions.
Variable Interest Rate
Variable interest rates are available for incomes other than EUR. For income in PLN, fixed interest rates are rarely available in Spain.