Buying property in Spain is a significant decision that often requires obtaining a mortgage. For people from the European Union, the process is accessible but involves specific steps and requirements. Understanding how to secure a mortgage in Spain can save time and avoid common pitfalls.
To get a mortgage in Spain, buyers from the EU need proof of income, a valid identification document, and often a down payment of around 20-30% of the property price. Lenders also assess credit history and the property’s value before approval. Knowing these basics helps streamline the application process.
Mortgages in Spain vary by type, terms, and borrower eligibility. Knowing these details helps buyers from the EU navigate the process effectively. Key factors include the mortgage structure, legal conditions, and the documents required to qualify.
Types of Mortgages Available
Fixed-rate mortgages: Set interest rate for the entire term, predictable payments.
Variable-rate mortgages: Rate adjusts based on the Euribor index plus a margin.
Mixed-rate mortgages: Initial fixed period followed by variable rates.
Most mortgages cover 60–80% of the property’s value; non-residents often face lower LTV ratios (60–70%). Terms range from 10 to 30 years.
Contracts specify interest type, repayment schedule, and fees. Early repayment penalties (0.5–2%) may apply. Notary fees, valuation costs and taxes (10–15%) should be budgeted. Insurance and property registration are mandatory.
Eligibility Requirements
EU citizens must provide proof of income, identification, and a Spanish NIE number. Debt-to-income ratios typically must remain below 30–40%. Self-employed applicants need additional financial reports.
Preparing Your Financial Information
Gather payslips, tax returns, bank statements, NIE, and proof of deposit funds. Check credit history in advance.
Steps to Request a Mortgage
Submit application with documents in person or via broker. Specify amount, term, and rate type. Negotiate fees and penalties. Obtain a “mortgage in principle” if available.
Bank Evaluation and Approval
The bank assesses debt-to-income ratio and orders property valuation. Approval can take days to weeks. A binding offer is issued, then sign the mortgage deed before a notary.
Buying Property in Spain as a European Union Citizen
Legal Steps for EU Buyers
Obtain a NIE (Número de Identificación de Extranjero).
Sign a preliminary contract (Contrato de Arras) and pay a ~10% deposit.
Finalize the Escritura Pública before a notary.
Register at the Land Registry (Registro de la Propiedad).
Advantages for EU Residents
No purchase restrictions; access to freedom of movement and residence. Mortgages are offered on similar terms as for nationals. Double Taxation Agreements apply.
Documents Required for Purchase
Passport or national ID
NIE number
Property deed (Escritura Pública)
Latest property tax receipt (IBI)
Energy efficiency certificate
Proof of income and bank statements for mortgage
