How to get a loan in a Spanish bank
Many of our customers think that it is difficult, and some that even impossible. But in fact, it is not difficult if you prepare all the necessary documents and submit to the right bank.
There are a lot of banks in Spain, and every bank except the state ones have its own internal regulatory documents and features. Therefore, we choose a bank for each client individually, based on his needs, country of residence and country of citizenship.
Today, banks in Spain lend on the following conditions:
- a mortgage loan for the purchase of real estate in Spain is issued to all foreign citizens
- interest rate from 3 to 6% per annum
- period from 10 to 30 years
- down payment from 30 to 50% of the value of the property.
It cannot be said that there are universal conditions, each case is individual and it depends on the country of residence and citizenship, on the age of the potential borrower, on the amount of income, on the level of expenses and financial condition and on the property that is being acquired.
We always preview our clients' documents in order to choose the most comfortable bank and request a preliminary assessment of a potential borrower at the bank.
Documents required for a mortgage in Spain for non-residents:
1. Proof of income of the borrower:
1.1. For employees:
- A statement of income for the last two years indicating salaries and taxes paid, period of work (for example, from June 10, 2008 to the present), position, activities of the company. For each year, a certificate is filed separately (a sample of a certificate of income in the attached file; if the period falls on two different years, two certificates must be provided for each individual year) *
For residents of Russia it is:
- the established certificate of form 2-NDFL for the current and previous years (if the period falls on two different years, two certificates must be provided for each individual year) *
- a certificate from the place of work indicating the period of work (for example, from June 10, 2008 to the present), position, activities of the company (sample certificate from the place of work in the attached file) *
1.2. For individual entrepreneurs:
- certificate / statement of registration *
- a tax return with a tax service mark for the last two years, for example, in 2020 a tax return is filed for 2018 and 2019 *
1.3. For company owners:
- Memorandum & Articles of Association *
- balance sheet for the last two years *
- documents on paid taxes for the last two years *
- documents on the company's profit for the last two years *
- documents indicating ownership of the company *
2. Cash flow on the current account (statement) for the last 3-12 months, indicating the balance on the day the statement is issued (the period depends on the intensity of movement on the account) *
3. A certificate of the absence of credit debt with a description of the credit history issued by the credit history bureau. Also, if there is no information in this certificate that the loans are closed and repaid, you must additionally provide a certificate from the bank where these loans were, about this *
4. Confirmation of another source of income.
It can be: a contract of ownership of property; certificate of ownership of enterprises, vehicles, securities; deposit agreement, etc. This is necessary in order to show the bank that you are a wealthy person and will be able to repay the loan *
5. Documents on the real estate in which you live:
- if it is own property - extract from the real estate register (up to date issue)
- if it is a leased property - a lease agreement indicating the cost of the lease and the amount of taxes paid.
6. Copy of the passport (for traveling abroad) of the borrower.
Also you must write in a free form :
If you are married or not
Are there any minor children (if so, how many)
Are there any mandatory payments (alimony and other payments)
Indicate phone number and email
Indicate address of residence in your home country
It is also necessary to remember that when applying for a loan to buy real estate, you will definitely need to take out life insurance for all borrowers (if there are several) and insurance for the purchased property.
Regarding the age of the borrower:
- the minimum age may be different depending on the borrower's home country, the potential client must be an adult over 18 years old and have an official income of at least two years;
- The maximum age assumes that at the time of repayment of the loan to the potential borrower should not be more than 75 years.
The interest rate can be either fixed or floating. The latter depends on the European Interbank Offered Rate (EURIBOR). This is the average interest rate on interbank loans provided in euros. It is determined with the support of the European Banking Federation, representing the interests of credit institutions in the countries of the European Union.
Is it possible to repay a loan ahead of schedule? Yes. But with a fine. The rate varies depending on the bank, from about 0.5% to 2.5% of the repayable amount.
The borrower must consult with a notary public within 10 days before signing the contract.
During this consultation, you will also need to answer the test questions, which will contain information about the conditions of the loan.
We will be happy to help you not only choose a property, but also get a loan.
Just contact us by any convenient way for you!
* - translation of a sworn translator (Traductor-Intérprete Jurado) is required. The term for completing translations is 2-3 days (required in Spain).