Mortgage in Spain - how does it work and how much does it cost

Mortgage in Spain - Construction loan from a Spanish bank
Taking out a mortgage in Spain - this is how it works now with the new mortgage law

You must handwrite that you understand that a bank loan must be repaid by yourself!


This is perhaps the most abstruse change if you want to take out a mortgage in Spain.

And then you have to go home and sleep on it again.




Only then can you actually sign the loan agreement with the bank for your mortgage in Spain.

The legislator has built a whole lot of hurdles to protect you from the banks' money.


Taking out a mortgage in Spain - how does it work and what does it cost?


Many clients ask me how they take out a mortgage in Spain. You can take out a mortgage in Spain for a variety of reasons. The most important reason for a mortgage in Spain is certainly the purchase of a vacation home. In this blog you will find a great deal of information on construction financing, real estate financing of a finished new construction property, financing of a historic finca and also on the registration of a forced mortgage.




To take out a mortgage in Spain you go to the notary. Depending on the reason for which you want to register a mortgage, different documents will be required from you. Here is an overview of the most important reasons and the necessary documents.


Mortgage for the purchase of a new property


You get credit from a bank to buy a new construction property in Spain? Then you have certainly been in this topic for a few months and do not even need to read this section further. Then Spanish banks are really slow when it comes to approving a mortgage for the purchase of a new construction property. Three to four months before the notary date you should already start negotiating with the bank. If you get the capital from friends or family members, they can also register a mortgage. However, your lenders will need an NIE, a Número de Identificación fiscal. This is exactly the same NIE that you have probably already applied for. Because without NIE nothing works in Spain. You also need: a Tasación, a Certificado energético, the Cédula de hábitabilidad, the final de obra and if necessary the división horizontal. The bank also needs from you the signed Fiper and the proof that your equity is actually coming from you. It is a pity if you have hidden from the bank that the equity comes from a loan....


In taxes you pay Actos jurídicos documentados and mortgage tax, besides notary, registro and gestoría.


Mortgage to buy an existing property


It is much easier to take out a mortgage in Spain for an existing property. Then you only need the NIE, a Tasación, the Fiper and the equity - proof. Prerequisite: the Certificado energético is available. Legally the seller is obliged to do this. But you know Spain: law and reality are two different worlds....


Mortgage to obtain credit


You know the topic from Germany: You have registered a land charge in favor of your mortgage bank and need money quickly. Of course, your mortgage bank gives you the money, as long as the loan-to-value ratio allows it, of course. Well in Spain nothing is a matter of course. Even this simple loan disbursement is a problem. You see, the Spanish central bank suspects an "asistencia financiera" behind this loan disbursement and simply prohibits such loan transactions in general. Yes, you read correctly: Borrowing capital for other purposes is forbidden in Spain! So never ask your bank in Mallorca for an asistencia financiera. This is forbidden and absolutely indecent. After all, every respectable citizen should be proud to call a paid-off property his own! So it is forbidden to pollute an unencumbered property in the ownership with a Spanish mortgage!


But you know Spain too well to throw in the towel now? Correct! Of course, the same applies here: ¡hecha la ley hecha la trampa! Where there is a law, there is also the possibility to circumvent this law.


So, if you have found a lender through an extremely good financial advisor, such as Finanzkontor, who will give you an asistencia financiera, you will only pay the mortgage tax, the notary and the registry at the notary. The other kerfuffle is then simply "forgotten".


Mortgage to pay for divorce


I do not wish it on you. But it happens of course: you live apart. The finca in Mallorca was bought by both spouses. Now comes the divorce. Then the finca has to be valued and one spouse pays the other. Only: where to get the money? Correct: take out a mortgage in Spain.


Here, the Spanish banks are very understanding, after all, divorce also happens in Spain. However, I strongly recommend consulting experts to reduce the tax effects to a minimum. "Extinción de condominio" is the magic word to keep the tax burden within limits. As with the "Asistencia financera", hardly any documentation is required from the notary. The whole thing is handled discreetly and unproblematically. One wants to avoid open quarrels between the newly divorced in the middle of the notary's office. However, the bank wants Tasación and Fiper in advance.






I recommend you in advance to talk to a mortgage broker. The subject of taking a mortgage in Spain can be expensive if you do not know the intricacies of the system. In any case, I recommend you read the article on the subject of real estate financing 50plus and the interest rate comparison construction financing Spain. Read how you can save up to 30% on your construction financing in Spain.