Spanish mortgaging – The rules
Do you have plans to settle by the Spanish Coast ? By buying a villa or apartment in Spain you will usually involve a mortgage. In short the rules are.
- You will need an N.I.E number to buy a property in Spain. An N.I.E numver is an identification number for foreigners, you can apply for this at the ‘Policia Nacional’.
- Spanish banks only give annuity mortgages as an option , An interest-only mortgage is obtainable from foreign mortgage lenders.
- If you are under 65 years old, the value and duration of your mortgage is dependent on you’re pension
- Spanish banks allow your mortgage to run until the age of 75
- Spanish banks have income criteria to determine the maximum amount of your mortgage. This comes down to that you are allowed to spend around 35% of your annual (net) income on total expenses
- Spanish banks usually end mortgages with a varying rate, using the Euribor rate as a yardstick
- The closing commission ranges from 0.5 to 1.5 percent
- The tax on the establishment of a mortgage in Spain is 1% of the entire mortgage
- The tax costs vary from €300 to €500, depending on the purchase price and the value of the property.
Useful links:
http://www.spf.co.uk/buyingabroad/spain/pages/lendingcriteria.aspx
