Mortgage in Spain – how does it work and what documents do I need to provide?


You have the Questions and we have the Answers! Let StartGroup help you!

At StartGroup, we are dedicated to customer care and service by giving the best advice for your Spanish finance solutions. We are always updated with the financial products offered by Spanish banks and we are happy to point you in the right direction for the best mortgage. We are happy to look into your situation, even before finding the right property. That way you will know all your possibilities beforehand and can base your property search on that

Do you need to finance most of the purchase amount?


On this page we have outlined a small Mortgage Guide, but please do not hesitate to contact us for personalised advise.

The Spanish banks have gone though major structural changes since 2010 when the Spanish national bank made the laws stricter. Several of the local savings banks have been forced into fusions or been bought up by the bigger banks. This way the Spanish banks are now stronger and healthier. Thanks to this the insecurity from the bank crisis of 2009 is now over, the banks now want to lend money again and the terms have been stabilized.

How Much Can I Borrow?

In Spain a EU-citizen can normally borrow up to 70%, sometimes 80%, of the purchase price of the property, which is set as security. The term is normally up to 30 years even though there can be limitations due to the age of the loan taker, as the banks want the mortgage to be paid off by the age of 75. That means that a loan taker of 60 years of age can get a loan term of 15 years.

Russian and other non-EU citizens can normally get a loan of up to 60% of the purchase price.

If you need a higher LTV (Loan To Value), maybe bank repossessions could be of interest, the selling bank normally offer special conditions and rates, even up to 100% of the purchase price. But in the market we are in right now it is hard to find good property that meets the standards of the buyers. In recent years the banks have sold most of the stock they were left in the crisis and the conditions and availability from banks are not in the buyers favour at the moment.

How much are the interest rates?

The interest rates are normally bound on 1 year to the EURIBOR rate, but fixed interest rates on 3, 5, 10, 20 and now even 30 years are also available. The rates offered ranges from Euribor +1% – +3%.  So if the Euribor is, for example 0,1%, and the banks add on 2% you would be paying 2,1%. Some banks offer a fixed rate for the first few years followed by a variable rate.

Interest only terms are not so common in Spain. Before the bank crisis in 2009 it was more common but now in 2019 it is not an option the banks offer widely. At the moment the bank will study each individual request for interest only periods which will typically only be for a year or two.

You can see the Euribor rate on the web page of the European Central Bank under this link:

Bear in mind that the various banks have different product available and some might suit you while other do not. In order to see your particular case it is always best to have a private consultation with your property expert at Start Group who can guide you to the bank that can offer the best mortgage for you.

What costs are involved to obtain A Mortgage In Spain? New law since June 2019!


  • In Spain the mortgage has a separate deed which is signed in front of a notary.
  • Up until the 16th of June 2019 the loan taker was responsible to pay the cost for the notary, the land registry and the AJD tax over the mortgage amount, all of which came to just under 2% of the mortgage amount, BUT with the new legislation it is now the banks that have to pay all these cost. So it is now a lot cheaper to start a mortgage in Spain! The cost that the loan taker has to pay is now only the independent bank valuation and the banks opening fee.  The bank valuation is normally between 300 to 500 Euros and the banks opening fee varies from 0 – 2%, but it is normally 1% of the mortgage amount. 

Please contact us and we will look at your individual case and quote the best options for you.

What Documents Do I Have To Provide To Get A Mortgage Offer?


Documentation necessary to obtain mortgage offer:

If employed:

  • Latest tax return (P60 for the UK, Notice of assessment for Ireland, Skattedeklaration for Sweden, Ligning for Norway)
  • 3 latest payslips (lönespecifikation)
  • Last 3 months bank statements showing salary
  • Passport copy
  • Experian credit report or similar (available in your country)

Self-employed person or company:

  • Latest tax return (P60 for the UK, Notice of assessment for Ireland, Skattedeklaration for Sweden, Ligning for Norway)
  • Last 6 months bank statements
  • Internal accounts signed by accountant
  • Letter from chartered accountant stating; nature of business, confirming last years turnover and earnings, forecast for the present year
  • Passport copy and the deed of registration of the company if applicable

All information is correct at the publication in July 2019. The cost and available financial product may vary without prior notification and any finance in Spain are always subject to status and case study as well as due diligence.

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