Applying for a Loan
Financing for property and other needs in Spain
Applying for a loan in Spain can be complex for a foreign client. We help you through the entire loan process — from mortgages to personal loans — and ensure you get the best possible terms.
Types of loans in Spain
Different types of loans are available in Spain: mortgage (hipoteca) for property purchase, personal loan (préstamo personal) for personal needs, car loan (préstamo de coche), and business loan (préstamo empresarial). The most common is a mortgage, which banks typically grant for 60–70% of the property value to foreign buyers.
What do banks require?
Banks typically require from a foreign loan applicant: a valid passport, NIE number, a Spanish bank account, proof of income (payslip, tax certificate), employment contract or pension certificate, credit information, and details of the property to be purchased. Non-residents are often required to make a larger down payment (30–40%).
Interest rate and terms
In Spain, mortgage interest rates can be fixed (tipo fijo) or variable (tipo variable). In fixed-rate loans, the interest rate remains the same throughout the loan period. In variable-rate loans, the rate follows the Euribor reference rate. We help you compare bank offers and choose the best terms.
Application process
The loan process proceeds as follows: comparing loan offers, pre-approval (preaprobación), property valuation (tasación), final loan decision, and signing the loan agreement at the notary. The entire process usually takes 4–8 weeks. We handle communication with the bank and document preparation.
Taxes and costs
The loan involves costs: valuation fee (tasación) €200–400, notary fee, registration fee, bank opening fee, and possible loan insurance. Total costs are about 1–2% of the loan amount. We also help with tax planning related to the loan.
Planning to apply for a loan in Spain?
We compare bank offers and handle the loan application — you get the best terms with our expert's help.