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Spain offers foreign citizens favourable loan terms thanks to the low Euribor rate.

Foreign mortgage loan terms in Spain (as of November 2016) Source: Tranio

Maximum LTV ratio 70%
Minimum loan amount €50,000
Fixed rates From 2.5% per annum
Loan term Up to 30 years
Minimum age
of borrower
18
Maximum ageof borrower
by the end of the loan term
65
Maximum percentage
of monthly income
for mortgage
35%

Documents

To obtain a mortgage loan in Spain, lendees must submit the following documents to the bank:

  • passport
  • copy of preliminary sales contract
  • tax return for the previous and current years
  • extract from a credit bureau
  • statement of account surplus from a bank in the lendee’s country of permanent residence
  • tax identification number Número de Identificación de Extranjero), assigned to foreign buyers in Spain prior to signing any agreements or once they have put down a deposit for the property.

All the documents must be translated into Spanish and notarised.

Loan applications usually take 2-5 weeks for approval.

Extra costs

Non-recurring mortgage costs in Spain tend to amount to about 1% of the property value. There are also additional annual property insurance payments of about 0.2% of the property value.

Additional mortgage costs in Spain (as of November 2016) Source: Tranio

Property appraisal
and Due Diligence
About €500
Property insurance 0.2% of the property
value per annum
Mortgage arrangement fee 1% of the loan amount
Early repayment penalty 0.5% of the remaining
debt amount
(the rate varies
depending on the bank)