How to get a mortgage in Spain?

A mortgage in Spain is increasingly becoming a viable tool for Poles to finance property purchases. The growing interest is due to the availability of bank offers also for those earning income in Poland, without the need for Spanish tax residency. The procedure differs from that known on the domestic market, but is based on clearly defined stages and stable rules, which allows it to be planned effectively. Informed preparation of documents and support from local specialists make it easier to go through the entire process and increase the security of the financial decision.

Table of Contents:

• Mortgage in Spain for a Pole – financing conditions and required contribution
• What documents for a mortgage in Spain should I prepare before applying?
• Mortgage interest rates in Spain – what affects the cost of financing?
• Comprehensive support for credit and property purchase on the Costa Blanca
• Mortgage: Spain – professional support Home in Spain

Mortgage in Spain for a Pole – financing conditions and required contribution

Access to financing depends largely on the buyer’s tax status. Spanish residents can count on a higher level of lending, while non-residents – including most Poles working and settling in Poland – usually receive financing at 60-70% of the property’s value. In practice, this means the need to prepare significant upfront capital, including not only a portion of the purchase price, but also per-transaction costs. In the context of budget planning, the question often arises as to how much of an equity contribution for a loan in Spain is needed for the bank to favorably evaluate the application – most often it is 30-40% of the price of the property plus about 10-13% for taxes and fees.

Stable, documented income and a good credit history remain crucial in assessing financial capability, regardless of the country of employment. Banks look at the regularity of income, the level of current obligations and the timeliness of repayments. The NIE number, necessary for tax identification, also plays an important role, as well as the bank account in Spain through which payments related to the purchase and servicing of the loan are made. A mortgage in Spain for a Pole therefore remains an achievable solution, as long as the entire process is properly planned and preceded by sound financial preparation.

What documents for a mortgage in Spain should I prepare before applying?

If you’re wondering how to take out a mortgage in Spain, it’s worth knowing that banks require a clearly defined set of documents that proves your identity, financial situation and the parameters of the planned transaction. Complete documentation is crucial for a smooth banking procedure and a shorter waiting time for a decision. A mortgage loan in Spain is based on a detailed analysis of data, so every piece of documentation must be consistent and up-to-date.

The most commonly requested documents include:

• A valid identity document and NIE number, necessary for the foreigner’s tax identification,
• financial documents confirming the source and amount of income, including a certificate from the employer, annual PIT returns from recent years and bank account statements,
• a summary of current credit obligations with confirmation of timely repayment, which allows the bank to assess creditworthiness,
• Confirmation of funds for own contribution and additional transaction costs, including taxes, notary and registration fees,
• real estate documents, such as a reservation agreement or preliminary agreement, which specify the price and terms of purchase.

Sworn translations of selected documents into Spanish remain an important part of the entire process, without which the bank will not be able to formally process the application. However, more and more banks are also accepting documentation in Polish, without translation. Proper preparation of documentation significantly increases the chances of a positive credit decision and avoids unnecessary delays.

Mortgage interest rates in Spain – what affects the cost of financing?

The cost of financing real estate is based largely on the European EURIBOR index, which is the benchmark for banks’ offers. Its level affects the installments for variable-rate loans, so it is directly relevant to long-term budget planning. Mortgage interest rates in Spain are usually determined using two indices: TIN and TAE. The former refers to the nominal interest rate, while the TAE takes into account the total cost of the loan, including commissions, administrative fees and ancillary costs, making it possible to realistically compare banks’ offers.

A loan with a fixed interest rate ensures a constant installment throughout the repayment period, which promotes financial stability and cost predictability. The variable-rate option may be more favorable when EURIBOR rates are low, but it carries the risk of rising installments in the future. An intermediate solution remains a blended mortgage, in which the initial repayment period is based on a fixed rate and then switches to a variable one. Choosing the right financing model depends on the buyer’s profile, income level, risk tolerance and the purpose of the property purchase.

Comprehensive support for credit and property purchase on the Costa Blanca

Home in Spain offers assistance with applying for a loan in Spain, including an initial creditworthiness analysis, completing documents and working with local financial advisors. With on-site support, the entire buying and financing process goes more smoothly, with full control over costs and paperwork. And if you’re interested in Costa Blanca real estate, browse our listings. Each of them has been selected with different purchase purposes in mind – from year-round living to investment.

• Real estate in Alicante includes apartments and condos in a city with full infrastructure, close to beaches, the airport and business facilities.
• Apartments on the Costa Blanca work well as a second home in the sun or rental property thanks to their functional layouts and attractive locations.
• Exclusive homes on the Costa Blanca are aimed at clients seeking privacy, a high standard of finishes and prestigious addresses.
• Villas on the Costa Blanca offer space, private gardens and swimming pools for comfortable Mediterranean-style living.
• Penthouses on the Costa Blanca allow you to enjoy panoramic views, large terraces and the highest standard in seaside developments.

Mortgage: Spain – professional support Home in Spain

Financing the purchase allows you to implement your investment plan without committing full cash and maintain liquidity. A mortgage in Spain allows a flexible approach to the purchase of a house or apartment, with clearly defined rules and predictable costs. Cooperation with Home in Spain includes initial analysis of creditworthiness, coordination of documents and ongoing contact with banks operating in the local market.

Assistance in selecting a property that meets the requirements of financial institutions also remains an important part of the support, reducing the risk of rejection. This makes the process run more smoothly, with time savings and a full sense of security on the part of the Polish client. At this stage you already know how to buy a house in Spain by taking a mortgage, so it is worth consulting the next steps with the experienced Home in Spain team and start acting on the basis of a reliable analysis.