Spanish Mortgage Calculator
Our Spanish mortgage calculator can help you work out your monthly mortgage payments. All you have to do is enter the amount, loan term, and interest rate.
FFA Spanish Mortgage Calculator
Use our Spanish mortgage calculator for a quick and easy way to calculate your monthly mortgage payments. Just enter the mortgage amount you wish to borrow, the term over which you intend to pay it off, and the interest rate – then hit the ‘Calculate’ button.
As there are no buy-to-let or interest-only mortgages currently available in the Spanish mortgage market, the monthly mortgage amount is calculated on a capital repayment basis.
The average mortgage term in Spain is 20 years, although 25 or 30 years may be possible on a case-by-case basis. The maximum mortgage term is 40 years, but this is likely to only be available to Spanish nationals who are full-time residents in Spain.
Spanish mortgage interest rates vary, but we recommend you use our standard exclusive rate mortgage deal of 2.20% for your initial mortgage calculations. Speak to us to find out if you qualify for one of our white label market-leading Spanish mortgage products.
How much can I borrow for a mortgage in Spain?
Are you considering buying your first Spanish property? Whether you’re preparing for a future investment or looking to secure a holiday home as soon as possible, most non-residents require a mortgage to buy their home in Spain.
The percentage of the property value (before tax) that the bank will finance is known as loan-to-value. Banks sometimes base this on their own assessment of the property’s value rather than the purchase price, so it’s possible to get a better rate if the assessor’s value is more than you paid.
For residents of Spain, mortgages can go up to as much as 80% of the purchase price or valuation figure. However, for those purchasing a Spanish property from overseas, the maximum amount you can borrow is 70%. Non-residents will also have higher interest rates and shorter repayment terms.
The majority of foreigners will receive an offer of 60%, meaning you must be able to pay for the remaining 40% yourself. However, banks can sometimes provide up to 100% of the value for a mortgage on repossessed Spanish properties that they list themselves.
While fiscal residents in Spain may be able to get a variable mortgage, non-residents are often restricted to a fixed mortgage. The interest rate can range from 2-4%, depending on the property value and your buyer profile (e.g. your financial stability and creditworthiness).
To secure the best mortgage rates for foreigners buying Spanish property, you should be able to demonstrate solvency, proving that the repayments are no more than 35% of your income. Having a stable monthly income and applying early in the purchasing process will improve your chances.
Contact FFA for a Spanish mortgage quote
If you would like a Spanish mortgage quotation specific to your individual circumstances, please get in touch with one of our Spanish qualified mortgage advisers (ICIs) for a free consultation. We’ll gladly advise you on the Spanish mortgage options available to you.
We will never ask you to provide sensitive fiscal information in any of our online communications, and we caution you against doing so with any other financial companies.
Mortgage brokers in Spain are legally required to be qualified and regulated, but some operating companies are not. To be sure of obtaining safe and well-informed Spanish mortgage advice, please contact us at Fluent Finance Abroad.
Please note that the figures given by the Spanish mortgage calculator are only a guide. If you require a more specific figure for your monthly costs, speak to one of our consultants for an independent opinion on the best Spanish mortgage package for your particular needs.
Read on for more information about mortgages in Spain, and be sure to check our Spanish mortgage FAQs below. When you’re ready to discuss your mortgage requirements and receive a reliable quotation, please call us on +34 952 85 36 47 or email email@example.com.
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Frequently Asked Questions
What are the associated costs for a Spanish mortgage?
As you’d probably expect, the way mortgage lending works in Spain differs slightly from overseas. There will be a few extra financial considerations, known as associated acquisition costs. These include things such as notary fees, stamp duty, and other legal and administrative expenses.
The various taxes and fees involved in Spanish property purchases usually total around 10-15% of the property’s value or purchase price. This means that if you have a mortgage of 70%, and provide 30% as a deposit, you also must be able to cover at least another 10% of the value.
There are the bank’s mortgage application and property assessment fees, the notary’s certification fees, the property ownership registration fees, plus transfer tax (up to 10%), and stamp duty (around 0.5-1.5%). If you hire an estate agent or lawyer, you should also factor in their rates.
You may also have to pay for evidentiary documents for the lender’s application, such as a credit report, a valid passport, Spanish tax identification, or property/life insurance certification – plus translation and apostillation costs. These additional expenses usually aren’t included in the 10-15%.
After closing the sale and registering as the owner, you’ll then be liable for Spanish property tax (IBI). This annual tax can vary from one municipality to another, generally between 0.4%-1.3% of the property value. Sometimes, even non-residents have to pay income tax on their assets in Spain.
If you rent out your property in Spain while you’re not living in it, or sell it on to someone else, you’ll owe 19-24% of this as income tax or capital gains tax. You’ll also need to write up a Spanish will to designate a beneficiary to inherit the property, with considerations to Spanish inheritance tax.
Which documents do I need to apply for a mortgage in Spain?
Similar to a National Insurance Number in Britain and a Social Security Number in the USA, you cannot get a bank loan or buy a property in Spain without an NIE (Número de Identificación de Extranjero, or Foreigner Identification Number).
To get one of these, you’ll have to fill out an EX15 form and book an appointment at a police station in the appropriate Spanish province. You must attend this appointment in Spain in person, and bring supporting documents like your ID and property purchase information.
Once you have your NIE, you can apply for a Spanish mortgage. Whether you choose a Spanish bank or an international lender, most will also require the following documents:
- Proof of income (e.g. employment contract, bank statements, payslips, tax returns)
- Current debt details (e.g. other mortgages, student loans, credit agreements)
- Current asset records (e.g. property deeds from any country)
- Copies of ID and marriage certificates (if applicable)
- Copy of a preliminary contract or presale agreement
- Property tax records (proof of up-to-date payment)
All of these documents must be translated into Spanish by a qualified legal translator and given an Apostille stamp to certify their legality. Even if an international bank accepts documents in other languages, the Spanish notary probably won’t, so you’re likely to require translated versions to complete the purchase in any case.
How does the Spanish mortgage application process work?
It’s advisable to start building your mortgage application file in advance, preparing general paperwork that you know you’ll need even before finding the property you want to buy. You don’t need to have signed the contract and notarised the deed to pre-apply for a Spanish mortgage.
Once you gather the documents required by the specific lender, which include but are not limited to those mentioned above, you can submit your complete mortgage file to be assessed by their underwriters. If your application is successful, the bank will make a pre-approval mortgage offer.
You can compare this offer with other lenders to find the best mortgage available. Once you accept, the bank will arrange a valuation of your property, and make a final mortgage offer based on their findings. If you’re happy with terms, you can sign the mortgage contract and open an account.
The bank and the notary will liaise with you to finalise your purchase, which can take anywhere from a few days to a few weeks after signing the mortgage agreement. If you can’t or don’t wish to travel to Spain to sign these documents, a solicitor in Spain with power of attorney can do it for you.
All in all, you can expect the mortgage process in Spain to take 6-8 weeks to complete. If everything is well-prepared and goes smoothly, it could take as little as a month. It could also take longer if you spend more time getting your documentation in order or comparing different mortgage offers.
How much tax do you have to pay when buying a house in Spain?
As mentioned above, there are associated costs that can drive up the price of a Spanish property purchase, which include various taxes. These include ownership transfer tax and stamp duty. Following the purchase, you’ll become a property owner in Spain, which means that you’ll be liable for certain Spanish taxes – including state taxes and local taxes.
Firstly, there’s the annual Spanish property tax (IBI), which is similar to council tax in the UK. You’ll have to pay up to 1.3% of the property value, depending on the rates set by the local authority. Then there’s Spanish income tax (IRNR), which takes a cut of 19-24% of any income earned within the country – such as rental income, if you let out your holiday home while you’re not there.
Should you decide to sell your property in Spain, it’s likely that you’ll be liable for Spanish capital gains tax, or 19% of your income from assets sold in Spain. If you intend to leave your Spanish property to a loved one when you pass away, you’ll need to consult an advisor about local succession laws and ensure that you have a valid Spanish will, and take Spanish inheritance tax rates for your specific relationship and property value into account.
Additionally, if you have multiple high-value assets in Spain, you could be liable for Spanish wealth tax. It’s a progressive tax that applies to things like buildings, cars, investments, savings, jewellery, and art above a certain value. Wealth tax rates will vary between regions – they’re generally around 0.2% to 2.5% but can be over 3% in areas like Andalucía.
Why do some people get turned down for Spanish mortgages?
If you’re worried about not being able to secure a Spanish mortgage as a foreigner, you needn’t worry too much. As long as you have the relevant paperwork in order and can prove your financial status, you’re likely to receive an agreeable quote.
To help you prepare for a Spanish mortgage application and set your mind at rest, here are some of the reasons that a Spanish mortgage provider might reject an application:
- Overdrafts – Your bank accounts in your home country are often overdrawn
- Incomplete credit check – You can’t provide a credit report from your home country, or you’re missing other financial records like payslips and tax declarations
- Borrowed funds – Your deposit funds come from a company or released equity elsewhere (European banks advocate responsible lending)
- Not enough funds after purchase – You have just enough money to buy the property, but no proof of future funds to cover mortgage repayments
- Lack of insurance – You can’t get life insurance or property insurance, or have very high premiums due to pre-existing medical conditions
Though it may seem a bit personal, Spanish banks can also refuse a mortgage if they don’t like the property or the developer. Some properties may not be worth the investment to them. In some cases, they may have already approved mortgages within a development, and reached their limit.
For an assessment of your financial position and advice on whether you could get a respectable Spanish mortgage offer, please get in touch with Fluent Finance Abroad.
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