Documents required for a mortgage in Spain

Do you dream of owning an apartment on the sunny Costa del Sol or a modern flat in bustling Barcelona? A mortgage in Spain could be the key to making those dreams come true. In this comprehensive guide, we analyse the latest market trends, financing conditions and the entire process of obtaining a mortgage in the country of sun and flamenco.

1. What is a mortgage in Spain?

A mortgage in Spain (hipoteca) is a form of financing the purchase of real estate, in which the main collateral is a mortgage established on the property being financed. The rules for granting loans by Spanish banks are very similar to those in Poland – the market is competitive and there are many different offers available.

Properties on the primary market in Spain are particularly attractive due to:

• Modern construction technologies and energy-efficient solutions
• Developer guarantees increasing investment security
• Attractive amenities such as swimming pools, gyms and recreational areas
• The possibility to arrange the space according to your own preferences

2. Current situation on the mortgage market in Spain (May 2025)

The Spanish mortgage market offers three basic types of financing, each with its own advantages and specific features:

Types of mortgages

According to the latest analyses from May 2025, property prices in Spain are showing stable growth of around 4% per annum. We are also seeing growing interest from foreign buyers, including Poles, attracted by the high quality of life and well-developed tourist infrastructure.

Comparison of offers from leading Spanish banks

Below is a current list of the most popular banks offering fixed-rate mortgages:

3. Who can apply for a mortgage in Spain?

The good news is that both residents and non-residents of Spain can apply for a mortgage. As citizens of the European Union, Poles can enjoy full freedom of capital movement between member states.

Terms and conditions for residents

You are a resident of Spain if you meet one of the following conditions:

• You reside in Spain for more than 183 days per year
  You have your centre of vital interests (personal or economic) in Spain

As a resident, you can count on:

• Financing up to 80% of the property value
• Maximum loan term of up to 30 years
• More favourable interest rates

Opportunities for non-residents

Not a permanent resident of Spain? You can still obtain a mortgage, but under slightly different conditions:

• Financing of 50-70% of the property value
• Loan term usually up to 20 years (maximum 25 years)
• Slightly higher interest rate

The main requirements for all borrowers are stable income, good credit history and the ability to cover the down payment (20% for residents, 30-50% for non-residents).

4. Documents required to obtain a mortgage in Spain

The key to quickly finalising a mortgage is to carefully prepare all the required documents. At Go Spain, we will help and advise you on what you need to do to complete all the documents. However, if you are not our client, below you will find a list of what you need to provide. We have divided the documents according to your professional situation and type of employment.

Documents for persons employed under an employment contract

• Identity documents:
  • Identity card or passport
  • NIE number (Número de Identidad de Extranjero)
  • Residence certificate (if applicable)
• Financial documents:
  • Employment contract
  • Last 3 payslips
  • Bank account statement for the last 6 months (showing deposits)
  • Tax return (PIT) for the last 2 years
  • BIK statement (credit information bureau report)
  • Information about credit obligations
  • Declaration of assets (assets and liabilities)
  • Confirmation of opening an account with a Spanish bank
• Information on funds accumulated for the purchase of real estate

Documents for persons conducting business activity

• Identity documents (same as for employed persons)
• Financial documents:
  • Personal bank statement for the last 6 months
  • Company bank statement for the last 6 months
  • PIT tax return for the last 2 years
  • Company tax return for the last 2 years
  • BIK credit report
  • Information about credit obligations
  • Declaration of assets (assets and liabilities)
  • Confirmation of account opening at a Spanish bank
• Information on funds accumulated for the purchase of real estate

Documents relating to real estate

• Preliminary agreement or reservation agreement
• Nota Simple – ordinary extract from Spanish land registers
• Building plans and certificate of habitability (for properties on the primary market)

Please note that all documents in languages other than Spanish or English must be translated by a sworn translator approved by the Spanish government.

5. The process of applying for a mortgage in Spain

The credit process in Spain is more complex than in Poland and takes much longer – up to 3 months. Be prepared for a comprehensive procedure consisting of the following stages:

1. Contacting the bank – by telephone or WhatsApp to discuss expectations.
2. Submitting documents – sending all required documents for analysis.
3. Selecting a property – after determining creditworthiness.
4. Signing a reservation agreement – securing the selected property.
5. Submitting a loan application – officially applying for a loan.
6. Supplementing documentation – providing additional documents at the bank’s request
7. Loan decision – the bank informs you whether the loan has been granted or refused
8. Consultation with a notary – mandatory free consultation before finalisation
9. Signing the notarial deed – finalisation of the purchase and establishment of a mortgage

Power of attorney in the credit process

Interesting fact! You do not need to be present in person at all stages of the loan process. You can use a notarised power of attorney, which authorises a representative (e.g. a consulting company) to act on your behalf in the following cases:

• Formal completion of the purchase
• Submission of an application for a NIE number
• Opening a Spanish bank account
• Transfer of utility connections

This is a particularly convenient solution, eliminating the need to travel to Spain multiple times just to complete the formalities.

6. Costs associated with a mortgage in Spain

When planning to finance the purchase of a property in Spain, you need to consider not only the interest rate itself, but also additional costs:

Interest rates and commissions (May 2025)

• Interest rate:
  • Fixed-rate loans: 2.60%–2.90%
  • Variable-rate loans: 1.65%–2.47% in the first year, then Euribor + margin (0.40%–0.50%)
  • For non-residents: 2.80% in the first year, then Euribor + 1.2%
• Commissions:
  • For opening a loan: 1-1.5% of the loan value
  • For early repayment: 0.25% during the first 3 years, then 0%Dodatkowe opłaty

In addition to the loan itself, you must be prepared for additional costs:

• Taxes and legal fees: 8-13% of the property value
• Mandatory insurance: life insurance and home insurance
• Notary fees and registration fees

In total, all transaction costs can amount to as much as 15% of the purchase price of the property, so be sure to include them in your budget.

7. Advantages of a mortgage for a property on the primary market in Spain

There are several reasons why it is worth considering purchasing a property on the primary market in Spain:

Preferential financing terms

Developers often offer various payment options and instalment financing, which can significantly facilitate the purchase process. In addition, many developers cooperate with banks, offering their customers preferential credit terms.

Developer guarantees

Properties on the primary market are covered by developer guarantees (10 years for the structure, 3 years for installations, 1 year for finishing), which gives buyers additional security and certainty about the quality of the property they are purchasing.

Modern amenities

New property developments often offer modern amenities that enhance the quality of life:

• Swimming pools and spa areas
• Gyms and sports areas
• Recreational areas and gardens
• Smart home management systems

8. Practical advice when applying for a mortgage in Spain

Preparing for the credit process

• Plan ahead – the loan process can take up to three months!
• Protect yourself in the reservation agreement – specify that the purchase is contingent upon obtaining a loan.
• Prepare all the necessary documents – have everything ready before starting the process.

Negotiating loan terms

Did you know that many banks offer the possibility of reducing the commission for opening a loan? You can achieve this by:

• Opening a savings account with the lending bank
• Holding credit cards with a specified minimum spending amount
• Using other banking products offered by the bank

Do not be afraid to negotiate – Spanish banks are often open to discussing terms, especially for customers with a good credit history and stable financial situation.

9. Support in the credit process

Obtaining a mortgage in Spain, especially for non-residents, can be complicated. It is worth considering professional assistance:

Services of professional advisors

Specialised companies offer comprehensive assistance with:

• Completing documentation
• Translating documents
• Representation before banks
• Negotiating terms and conditions

Attorney services

As mentioned earlier, you can grant a power of attorney to a trusted person or company who will take care of the formalities related to the loan and the purchase of the property.

Translation services

All documents in languages other than Spanish or English must be translated by a sworn translator. Professional companies offer comprehensive services to ensure that all documents are legally valid and accepted by Spanish institutions.

10. Frequently asked questions (FAQ)

We answer the questions most frequently asked by our customers:

Summary

A mortgage in Spain is an accessible and attractive tool for financing the purchase of real estate, especially on the primary market. Although the process may seem complicated, with proper preparation and possible support from professional advisors, it is entirely feasible for both residents and non-residents.

Thanks to competitive interest rates, transparent procedures and a wide range of offers available, more and more Poles are deciding to purchase their dream property in sunny Spain.

And if you dream of owning your own piece of Spanish paradise, remember that proper preparation is the key to success in the mortgage process!