Mortgages in Spain

Key Features of Mortgages in Spain:

• Loans available for purchase of investment property
• Re-mortgage and equity release available
• All mortgages in Spain are “Full Status”, proof of income will be required.  
• Capital & Interest or Interest Only
• Fixed or Variable Rates
• up to 95% LTV available or 80%LTV for Re-mortgage / Equity Release
• Currencies: Euro, Swiss Franc, Sterling, USD and many more available
• Maximum term 30 years

There are a number of additional costs involved when buying in Spain including taxes and stamp duty, these vary according to the type of property being purchased and region. As a rule of thumb you should allow for an extra 10-12% on top of the purchase price. Here are a few of the costs:

• New properties: VAT of 7% plus the stamp duty of 0.5% of the declared price.
• Second hand properties: Transfer tax – “Impuesto de Transmisiones Patrimoniales” (ITP) – usually 6% or 7% plus tax on ‘documented legal acts’ – “Impuesto sobre Actos Jurídicos” of 0.5% – this fee is charged for transferring the property to your name.
• Property register fee: based on a sliding scale
• Administrative agency fees
• Valuer’s fee: An independent valuation will be required, the cost will vary depending on the property value and survey company used.
• Local tax on property sales: “plusvalía municipal” – according to law, this is to be paid by the seller -you must ensure that this is checked by your lawyer. It is possible for this tax to be charged directly to the property itself, so if this is not paid by the seller you may be left to pay the bill.
• Notary fees: these are fixed by law and based on a sliding scale and vary according to the size of the plot, dwelling and the purchase price.

If you require further information on mortgages in Spain please contact our overseas mortgage consultants on 0203 236 1003.