Information about mortgages in Spain

Mortgage for a house in Spain

You can finance a holiday home in Spain in various ways. This of course depends on your personal situation. We list a number of options here that you can consider:

• you pay from your own resources;
• you take out a British continuous credit or personal loan;
• you increase your British mortgage with the British real estate as collateral;
• you take out a mortgage on the property in Spain;
• you take out a mortgage through a project developer;
• you buy together with your child (ren) and they become co-owner.

Spanish mortgage costs

Establishing a mortgage in Spain is more expensive than in the United Kingdom. We list the costs for you:

• tax on mortgage. This is 1% of the mortgage amount to be registered;
• notary and registration costs;
• appraisal costs between 350 and 500 euros;
• closing fee: usually between 0.5% and 1.5%.

The percentage you can take out as a mortgage depends on whether you are a resident or not. At most banks this is possible up to a maximum of 70% of the appraisal value for non-residents and 80% for residents. You must pay the remaining percentage plus the costs of the buyer and any difference between the appraisal value and the sale price.

Rates and durations

The rates and the maximum term of the mortgage depend on many factors. Almost all of these have to do with the level of the 'risk':

• the percentage of the purchase price that you want to borrow;
• the appraisal value, the purchase price and the sale value included in the deed of purchase;
• your income and wealth situation;
• your age;
• whether you take out life insurance.

The mortgage type with a Spanish bank is almost always annuities with a variable interest rate. The age limit for a Spanish mortgage is 75 years. If you are 50 years old, the maximum mortgage term is therefore 25 years.

Help and explanation

We are in contact with various banks in Spain, who are happy to explain what the options are in your situation. If desired, we are happy to help with making the first contact or requesting a quote. If you would like to receive a rough calculation of your monthly charges, based on a certain mortgage amount, we would be happy to make an overview for you free of charge.We work closely with the CaixaBank, Banco Mare Nostrum (merger between Caja Granada, Caja Murcia and SA). Nostra) and Banco Sabadell.

Due to rapidly changing laws and regulations within the EU, certain information may now be outdated. The information above was up to date in 2020.