How do I finance a property in Spain?

Can I borrow money to buy a house in Spain?

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.

Is it hard to get mortgage in Spain?

Spain has a very competitive mortgage market and as a result, there's plenty to choose from when it comes to loans. However, non-residents buying Spanish property with a mortgage have more limited access to loan types and conditions.

How much can you borrow for a mortgage in Spain?

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%.

What is the deposit for a Spanish property?

The deposit, or down-payment, is usually a small amount (between 3,000 and 6,000 Euros) that is held by the seller's lawyer or estate agency and which is used to guarantee the purchase and take the property off the market, as well as freezing the price.

How To Buy A House In Spain (Step-by-Step Guide)

How much below asking price should I offer in Spain 2021?

Property owners who sold their homes on a Spanish website accepted 14 percent below the initial asking price, according to research specialist Beatriz Toribio. That translates into an average saving of €33,400 on the average price of the sales surveyed. More than four out of every five sellers lowered their price.

How much tax do you pay in Spain when buying a house?

Expect to pay between 8% and 11.5% in taxes on a property purchase in Spain.

How much deposit do I need for a Spanish mortgage?

Deposit. For a Spanish mortgage, you will generally need a minimum deposit of 30% of the property's purchase price, with borrowing rates currently starting around 2% (lower for premium clients). “The maximum mortgage for non-residents is 70% of the purchase price or valuation, usually depending on which is lower.

What are the pitfalls of buying property in Spain?

Some of the common pitfalls of buying a property in Spain include deposit, purchase tax, issues with off-plan properties and properties being built illegally. During your research into buying a property in Spain you will have come across many stories of purchases in Spain gone wrong.

How do you qualify for a Spanish mortgage?

Which UK banks offer Spanish mortgages?

There are no UK lenders offering mortgages in Spain. Some Foreign Banks based in Luxembourg, Monaco and Switzerland may consider the property in Spain, but their minimum purchase price is € 2 million and minimum loan €1 million.

Do Spanish banks do credit checks?

Do banks do credit checks? Yes. They will carry out a Spanish credit check (called a CIRBE) to see if the applicant(s) have any existing debts in Spain and they will also ask foreign buyers to provide an independent credit report for their home country.

Do I need a Spanish bank account to buy a property in Spain?

Spanish laws require buyers to open a bank account in one of the Spanish banks, and transfer the funds there to pay to the vendor directly from the Spanish bank account.

Can you get a 100% mortgage in Spain?

Mortgages for non-residents in Spain are typically 60-70%, but you can get up to an 100% mortgage on a bank repossesion home when you buy with Iberian Properties.

Can a UK citizen get a Spanish mortgage?

Getting a mortgage in Spain from the UK

As long as you have your NIE and all other documents, there's no reason in theory that you can't apply for your Spanish mortgage while still in the UK. Many banks lend to non-residents, and the application process is often started online¹⁰ or over the phone.

Can I buy a house in Spain without being a resident?

Are foreigners allowed to buy property in Spain? Of course! There are no restrictions on buying property in Spain, whether it's commercial, residential or land. In fact, Spain encourages investment by foreigners, both resident and non-resident.

Is it a good time to buy property in Spain 2020?

Spanish house prices rose 1.68% during Q3 2020 (2.2% inflation-adjusted). In the previous year, property prices in Spain in 2019 posted a 4.68% rise according to the Instituto Nacional de Estadistica. On a quarterly basis, house prices increased 1.15% in Q3 2020 (1.67% inflation-adjusted).

Is it wise to buy a property in Spain now?

Some property experts predict that house price values in Spain could fall by 5-10% as the full impact of Covid-19 on the economy is revealed. This could mean it's a good time to find a cheaper home to buy, but any economic instability also means a degree of risk for foreign investors.

Is there property tax in Spain?

Buying property tax: How much is buying property tax in Spain? Purchasing a property in Spain involves the payment of different taxes, ranging between 8% and 11.5%, whether the property is newly built, generally sold by banks or construction companies, or the property has already been owned by another person, a resale.

How can I get a loan in Spain?

Are property prices falling in Spain?

2020 saw Spanish property prices rise by 1.6%, having seen a decline in 2019. Following some surprisingly positive moments for Spanish property in 2020, foreign demand for 2021 also appears to be on the rise despite COVID-19 and post-Brexit concerns.

Do you pay council tax on property in Spain?

If you've bought a property, you've likely come across IBI in Spain. This tax is basically Spain's equivalent of council tax. Impuesto sobre Bienes Inmuebles, or IBI, is a tax that every property owner in Spain has to pay.

Do you pay IBI on land in Spain?

Unbeknownst to most non-resident property owners, on buying property in Spain, you automatically become liable to pay IBI tax the following year. No one will give you the heads up on this tax, so it is up to you to find out how much you owe and comply with your local Tax Authorities.

What happens if you own a property in Spain after Brexit?

Can I buy a house in Spain after Brexit? Foreigners can buy a property in Spain regardless of their nationality. British buyers should not face added difficulties buying a house in Spain after the UK leaves the EU. Spanish law regarding the purchase of property does not differentiate between EU and non-EU citizens.