Documents required for a Mortgage in Spain

In Spain, self certified or limited document mortgages in Spain, don’t exist. All Spanish mortgages are granted on a full status basis. Therefore each bank will require official evidence of incomes and outgoings. We can help you understand what each Bank will require for a Mortgage in Spain application, based on your country of residency.

Employed status document requirements for a Mortgage in Spain

Employed individuals are those classed as being contracted by, and paid by a third party. Anyone owning 25% or more of the company they work for, will be classed as self employed. Also, the type of employment contract, so whether permanent or a fixed term, may have an affect on what can be borrowed. For experienced advice on what you will need to present for a Spanish mortgage application, contact us today.

• 1 to 2 years personal tax returns (unless an expat in a non tax paying jurisdiction)
• 6 months personal bank statements showing pay being received and day to day activity
• Employer’s reference and or contact of employment
• Copy of a personal credit file and or annual debt statements
• Copy of passport
• Applicants for a Spanish Mortgage with investment properties. Spanish bank will want to see rental contracts. In addition bank statements showing rents being received
• Joint buyers, without incomes, need to show credit file and passport when applying for a Spanish loan
• Generally Spanish Banks cannot credit search direct. Spanish Mortgage applicants, must provide their own credit files

Self employed document requirements for a Spanish mortgage application

When applying for a Spanish Mortgage Self employed applicants need to provide company and personal information. The assessment of affordability will be against the personal situation. However the lender in Spain wants to see the Company details. To be sure it can support ongoing income levels required for the mortgage in Spain.

• 2 to 3 years personal tax returns for monies drawn by the individual
• Last 6 months personal bank statements showing incomes being taken. Day to day activity
• 2 years company accounts. To include profit and loss and balance sheet
• Accountant’s reference. Confirmation of the company and individual’s activity. Also projected fiscal strength
• Net wealth and liability statement
• Copy of a personal credit file. Annual debts statements
• Copy of passports

Other documents required for a mortgage application in Spain

On top of the fiscal information required, Spanish Banks will need, before a binding formal offer can be made, the full Property information. Also to check borrower has in place all legal obligations, to buy.

• Details of specific property when available
• The Nota Simple. This is a simplified version of the property deeds
• The Nota simple is required to enable valuation
• NIE certificates. Personal tax identification certificate. Originals required 48 hours before completion
• Copies of documents are used for application. However, before completion of the Spanish mortgage, originals must provided
• Some non Spanish documents may require official translation

If you have any questions about what documents you need for a Spanish mortgage application. Also when they are needed, contact our team of advisers.

Evidence of deposits and their source

Because of Money laundering, Spanish Banks are obliged to evidence source of funds for deposits. Most Spanish Banks will insist that deposit monies are sent, before completion, to the bank account you must open with them. Problems can occur if it is not clear where deposit funds are coming from. The Spanish Bank will also need to be happy with the source of the funds. In addition see proof of these before granting the mortgage in Spain.

• Money from savings are an acceptable source of funds
• Funds raised by way of sale of another property are also accepted by Spanish Banks
• Deposits raised by sale of other owned assets will cause no issues
• Crystallization of bonds or shares, as long as it does not affect incomes, will be considered
• Gifted deposits from a third party or family member will cause issues during the application
• Raising deposits by way of borrowings are not considered acceptable

Avoid issues before completion of your Spanish mortgage. Check with us today if the source of your deposit money, and when you can prove it, will affect an application for a mortgage in Spain.