Guide to get a mortgage as a foreigner in Spain

Since you already know that foreigners in Spain can also get a mortgage, you might wonder what the steps and required documents needed to get a mortgage as a foreigner. Here in this article, we have prepared a complete guide that assists you through the application process.

 

1. Prepare and submit the required documents to the bank:

2. Receive a mortgage pre-offer:

3. Compare and accept offers:  

4. Sign the deed in the notary

5. Register in the Property Registry

6. An extra step: you are required to contract home insurance!

 

 

1. Prepare and submit the required documents to the bank:

 

The documents you need to submit consist of identity documents as well as documents to show your income, debts, and taxes. Here’s a list of the documents you might need to present:

 

• Copy of the passport
• NIE number. This is a basic identification number you will need to buy a property in Spain and to carry out other legal or administrative procedures. For expats in Spain, it serves as an ID number. The NIE number is usually presented in your non-lucrative visa, golden visa (investor visa), or long-term student visa.
• Marriage certificate or prenuptial agreement (if applicable)
• Documents for employment and income
  • The best and most important document to prove your employment status is the payroll (nómina) for the last three months
  • If you work for a company, you need to present an employment contract.
  • If you are self-employed, you need to present an income tax declaration for the previous years.
• Latest tax declaration document
• Purchasing agreement with the seller
• Document proving that all the property taxes are paid to date
• Proof of your current assets and debts
• A copy of your existing property deeds (in Spain and any other country)
• Complete information about other loans you have

 

Note: All the documents should be in or at least legally translated or apostilled in Spanish.

 

 

 2. Receive a mortgage pre-offer:

 

 

After the bank analyzes the documents and your case, they might make you the first offer. This offer aims to avoid any confusion derived from the verbal negotiation. And this offer must include the following information:

 

• Amount and form of delivery of the loan
• Amortization: number of installments, payment periodicity, amount and date of payment, partial and total amortizations
• interest rate: nominal, revisions, benchmark
• commissions
• other expenses: appraisal

 

If any of the information has not been mentioned in the offer, you can ask for further clarification.

 

3. Compare and accept offers:  

 

When you get the first offer from a bank, you don’t need to make a decision very quickly. You still have time to compare offers with those of other banks or reliable organizations to get the best terms and conditions. 

You can take the initial offer from one bank to other banks or organizations so that they might give a better offer than the first bank. Then you can also take back the offer to the first bank, which might make them feel pressured to give you a better offer.

After comparing different conditions offered by different organizations, you finally decide to accept the offer of one bank. Try to be as calm, determined, and realistic when you decide because signing the contract means that you will start with a long-term loan that might require you to pay for 20-40 years. When you think you are ready, you can go to the organization to accept the offer.

 

 

4. Sign the deed in the notary

 

 

After accepting the offer, the documentation will be sent to a notary to prepare the deed. The buyer has the right to choose which notary to work with, although most organizations already have their notary partners. You can also empower a lawyer to assist you in the following steps.

 

This is the last moment for you to clear all doubts, but you cannot re-negotiate terms anymore because it is assumed that you have already done it in the previous steps. Sometimes you can still modify certain terms, but it’s not recommended. Once the loan is signed, there is no going back.

 

• The bank needs to send all documentation required to the notary 10 days before signing the contract
• The notary will check if there’s any problem before signing the deed
• If there’s no problem, you can successfully sign the deed with all the parties involved.

 

 

5. Register in the Property Registry

 

This step is directly carried out after signing the mortgage contract. The notary will send the notarial authorized electronic copy to the registry online. This is considered an official document, and it has the same value as the paper copy.

 

Once the process is done, the original document will be sent to the financial institution, and you will receive a copy.

 

6. An extra step: you are required to contract home insurance!

 

In general, if you buy a house in Spain, you are not required to buy home insurance. However, if your house will be mortgaged, you are required to contract home insurance by law. Before signing the contract, the bank usually requires you to buy home insurance and give you an offer. But you don't need to contract the home insurance offered by the bank. Instead, you still have the freedom to compare and choose the best option. Here at Adeslas, we offer you complete home insurance which will have you fully covered without any worries.

 

If you are still in the process of preparing for immigration documents, you can take a look at our expat insurance, a perfect visa insurance option that meets all the legal requirements.

 

If you would like to know more about this topic, check out one of these other blogs:

• How to apply for a Golden visa/investor visa in Spain?
• Guide to taxes required when buying a house in Spain
• Guide to rent a house in Spain
• Guide to tenants' rights and obligations renting a house in Spain
• The best places to live in Spain for Expats with different needs
• Cost of living: Is it cheap to live in Spain?
• Is it possible to get a mortgage as a foreigner in Spain?

 

 

Reference:

 

[1] Cómo conseguir una hipoteca: pasos del proceso hipotecario, Idealista, https://www.idealista.com/en/hipotecas/informacion-sobre-hipotecas/pasos-proceso-hipotecario

[2] "BOE.Es - BOE-A-2019-3814 Ley 5/2019, De 15 De Marzo, Reguladora De Los Contratos De Crédito Inmobiliario.". Boe.Es, 2021, https://www.boe.es/buscar/doc.php?id=BOE-A-2019-3814  Accessed 6 Sept 2021.

 

Our content will be updated according to the most recent legislation. Last update: 16/06/2023