Apartments in Spain are where the most part of Spaniards live in, particularly in apartment blocks, especially in large towns and cities. Construction of apartment blocks have continued since the late ’60s, and there’s still a good market.

The quality and size varies enormously, from tiny studio. They may be situated in small side streets and be dark and cramped, while others are spacious front-line beach or golf developments with views stretching as far as the eye can see. Prices range from €85,000 for a small one-bedroom apartment in a less popular resort (e.g. on the Costa Blanca) to well over €1 m on Marbella’s golden mile with just about everything in between.

Under Spanish law, all owners of apartments in Spain are members of the community of owners ( comunidad de propietarios) must comply community’s rules and pay community fees.

Advantages of apartments are:

1. low maintenance
2. security – especially if the block has 24-hour security or a concierge ( portero)
3. the use of communal gardens and pool (and possibly other facilities such as tennis courts). Apartments situated in towns also have the added advantage of local facilities and amenities within walking distance.

Disadvantages are

1. noisy neighbours
2. poorly-maintained communities
3. and crowded complexes during holidays.

Townhouses

Townhouses ( casa adosada) terraced houses in Spain, often with communal gardens and pool. In coastal resorts town houses are often built in a style known as the ‘Mediterranean village’ ( pueblo Mediterráneo) and houses may be white-washed or, as is increasingly popular nowadays, painted in shades of blue and yellow.

Townhouses are usually spacious and often have three or four floors, including a basement for a garage and storage, and a roof area with a roof terrace known as a solarium. Townhouses generally have little outside space or garden except for a small patch at the front and back, often paved as a patio. Construction tends to be recent and is generally of reasonable to good quality.

Townhouses usually form part of a community property and owners must abide by the community’s rules and regulations and pay community fees.

Townhouses are generally in the ourtkirts of towns, with prices ranging from €100,000 for a one-bedroom townhouse in a less exploited area, e.g. CostaBlanca, to over €750,000 for three bedrooms in a really popular area.

Villas

In general, the Spanish people don’t live in detached houses in Spain (casa, chalet or villa) and in many large towns and cities it’s difficult to find a large house unless it’s a mansion or palace belonging to the local aristocracy. On the coast, however, detached houses abound and are generally owned by foreigners or wealthy Spaniards who use them as second homes. Some villas form part of a complex and may share communal gardens and a pool, and are situated on small individual plots, while others are set in huge grounds.

Villas built in the ’60s and ’70s tend to be single-storey and often need extensive renovation work, particularly if they’ve only been used as holiday homes and not properly maintained. Construction quality may be poor in older properties, although the quality is usually excellent in newer properties, which tend to be at least two storeys and more spacious than older villas. Prices start at €150,000 for a small two-bedroom villa with a communal pool in a less popular area, although villas in many parts of the Costa del Sol, the northern part of the Costa Blanca, andIbiza and Majorca cost over €1m.

If a villa forms part of a community property, owners must abide by the community’s rules and regulations, and pay community fees.

Urbanisations

Urbanisations ( urbanizaciones) are purpose-built estates or developments which may include apartments, townhouses and villas, forming an essential part of Spanish resort landscapes and cities.

Some are small with a limited number of properties, while others are huge complexes, almost towns in their own right, such as Calahonda on the Costa del Sol or La Marina in the southern Costa Blanca. Property available on urbanisations is varied and caters for different needs and price ranges, and many urbanisations contain a mixture of apartment blocks and individual villa.

Facilities can be extensive in this places, from shopping facilities, transport systems and sports complexes to local bars. Some urbanisations have permanent resident populations while others turn into ghost towns outside the summer. Many urbanisations in Spain are populated mainly by foreigners and some tend to cater for one nationality only, e.g. British or German, particularly on the Costa del Sol, Costa Blanca and the islands.

Advantages include quietness, pleasant surroundings, good security and a settle foreign community.

Most urbanization are community properties, and owners, who automatically form a community of owners, must abide by the community’s rules and regulations and pay community fees. Some properties in Spain may belong to a sub-community within the larger community of the urbanization.

Country Properties

As property prices have risen on the coast and resort areas have become more crowded, some foreigners are increasingly looking in the countryside in their search for a property in Spain. Property here,called fincas–are basically well-preserved farmhouses – is generally cheaper than coastal resorts in Spain and widely available except in areas close to the coast. Fincas range from a ruin set in a large area of land to cottages or large country homes, sometimes together with working farmland.

Almost all fincas in Spain come with large plots of land may include fruit trees, olive groves or meadows. Renovation is almost always necessary unless you pay a plus for a property that’s already been modernized.

Advantages of country properties In Spain include cheaper prices, peace and quiet, low local taxes and the opportunity to enjoy the ‘real’ Spain. On the other hand, rural properties usually need extensive maintenance as well as restoration work, utilities may be poor or non-existent, amenities and facilities are often some distance away and you don’t have the advantage of a ready-made community.

The Romans dedicated this city to the goddess Diana, and turned its port into one of the most active in the Peninsula. Up to this day, Denia has not ceased to be visited. The Muslim castle keeps many examples of its heritage at the Archaeological museum. The city also has remarkable monuments such as the church of Asunción, from the 18th century, with Renaissance and Baroque reredos; and the City Hall, which still has in its façade two memorial tablets from the ancient temple of Diana. The avenue of Marqués de Campo, the cosmopolitan setting for the festivities of Moors and Christians, is complemented by the fisherman’s quarter, the most popular and gregarious area in town. Denia has a commercial port and a marina. Denia has a twenty-kilometre-long coastline, which presents fine sands in the northern part, yet steep and rocky sections to the south. The municipality has countless one-storey houses scattered around, with white façades, red-tiled roofs, and the typical porches from this region, called “riu-rau”. We can access the Montgó Nature Reserve from the road that goes to Jávea, which passes through Las Rotas, and San Antonio Cape. A lighthouse sits on this cape, on top of a cliff that is 163 metres high. 

A great place to live and enjoy life!, would you miss it?

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2. ORIHUELA

Orihuela offers the visitor a great place to enjoy the sea and sun, a monumental city centre, and three excellent eighteen-hole golf courses.Passing Torrevieja, going south, we reach the coastal area of the municipality of Orihuela. Vast sands mix with small cliffs, ideal for fishing and scuba diving. In addition, the municipality has two marinas located amid gorgeous settings.Punta Prima, Playa Flamenca, La Zenia, Cape Roig, and Dehesa de Campoamor are a few of the tourist towns that mark this southern route. Three excellent golf courses are the main attractions at some of them. Small grassed areas dotted by trees provide the perfect setting for playing this sport.While staying in this municipality, it is imperative to visit the monumental city. Its Historic-Artistic Site has five National Monuments and an urban layout that is the result of its former rank as a University Centre and Episcopal See. We must highlight two of its holiday celebrations: the processions of Holy Week, and the parades of Moors and Christians, in July.

The perfect place to give your family an incredible lifestyleand memorable summers!

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3. JÁVEA

Located between the capes of San Antonio and Nao, Jávea is one of the most important tourist destinations on the Costa Blanca. The historic quarter, located two kilometres away from the coastline, preserves a beautiful architecture, with emblematic monuments such as the church of San Bartolomé, the city’s neuralgic centre.One of the main attractions of this region is its coastline.

More than twenty kilometres of yellow sand and hidden coves to enjoy swimming and water sport.

4. TORREVIEJA

Torrevieja is a tourist town whose life revolves around the sea and the production of salt. Its two huge salt mines, La Mata y Torrevieja, are surrounded by modern housing estates.Connected with each other, the salt mines were declared a Nature Reserve; they reach the sea through La Mata. Salt mining in this region goes back to the beginning of Christianity, though it reached its peak during the 19th century. Nowadays, Torrevieja’s salt is exported to the whole world, and the annual production exceeds a million tons.In Torrevieja, seafaring tradition is kept alive bythe significant activity of the fishing and trading port, the numerous piers at the Royal Sailing Club, and the International Marina. Towards the end of the promenade we find the wharfs from which ships, loadedwith salt, would leave for Cuba. These vessels would bring, on their way back, the popular songs known as “habaneras”, which still entertain the popular Coral Competition celebrated every year during the summer.

Rich in history, relaxing beaches and beautiful houses!

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5. SANTA POLA

The town of Santa Pola in the region of Alicante, traditionally a fishing town, is located in an ecologically diverse area, on the shore of the Mediterranean. This section of the Costa Blanca presents visitors with excellent beaches with views to the salt marshes, the sierra and cape Santa Pola, a paradise for nature lovers. A superb accommodation and recreational infrastructure is paired with the region’s privileged climate. This makes it quite enjoyable to take a walk around town or on the promenade and to enjoy water sports.

LIFE QUALITY GUARANTEED

As soon as you know you want to buy a property in Spain, you will need to open a bank account there. Not only do you need a Spanish bank account to purchase a property in Spain, but you will also need to be able to set up direct debits to pay for utilities and bills.

Most of the main Spanish banks will cater well for English speakers, and you will sometimes be able to request that your contract comes in English – which will obviously ensure that you understand what you are signing! Make sure that a branch close to your new property has at least one English speaker working there.

A number of different types of account are available in Spain – both for residents and non-residents. Each bank has a range of accounts, such as those specifically for pensioners, or small businesses. 

Most Spanish banks charge a fee for servicing your account and some charge more fees than others for all the extras, like domestic and foreign bank-to-bank transfers. Others offer fee-free accounts with certain conditions attached, and there are some particularly interesting accounts available for retired residents, with free credit and debit cards, cashback on utility bills and free domestic transfers. These accounts are popular as bank charges in Spain can be high, and some banks charge much more than others. 

To open a non-resident account in Spain you will need your passport and some funds. Spanish banks do not generally issue cheque books; instead, payments are usually made by credit and debit cards (or cash of course). You will usually receive an annual fee for a Visa or Mastercard credit card.

All utility bills in Spain must be paid by direct debit, so it’s important to keep your account topped up to cover these inevitable monthly payments – and these will be taken from your account, whether you have money in them or not! Defaulting incurs fines and threats to cut off the water, gas or electricity supply.  Some utility bills are paid monthly, others bi-monthly or quarterly. 

Nowadays card payments in Spanish shops, restaurants and supermarkets are made with chip and pin. Visa and Mastercard are accepted in most places.

Generally, Spanish banks offer a good standard of service. You may be assigned a personal bank manager and the large banks have good internet banking sites which makes handling your money from the Hungary or Spain much easier. Be prepared for queues at the counter though, especially at certain times of the day. ATMs are to be found everywhere in Spain, but don’t forget that some may charge if they don’t belong to your bank’s group.

1. the property in Spain and land for sale match the details registered and the sellers are the registered owner
2. there are no debts or charges on the property in Spain from previous owners
3. there are no legal proceedings against the law over your property in Spain
4. you have checked that the permissions are in order and the property is legally acceptable. The town hall is the organization where you can get the information about the building and details of the land. If your property in Spain is built on rural land or land don’t allowed for construction, the regional government must give the authorization of construction
5. if you are buying an off-plan property in Spain, confirm that the property has been qualified as finished by a registered architect and registered as a new build in the property register. The registration should also provide details of the insurance against structural and other problems in the construction. In the case of a private property, you will need to ask for these documents separately
6. you have checked the latest town plan to see whether or not the property you wish to buy has any building restrictions, is in a green zone or includes a public pathway or similar. This can be viewed at to the town planning (urbanismo) department of the local town hall
7. you have carried out a property survey. Whilst this is not obligatory, it is important to get a chartered survey or to check the property
8. You have to know the cadastral value of the property in Spain and how much purchase tax will be due. You can check this at the regional government’s online tax agency site using the cadastal reference number for this task

Make sure you have seen the following documents:

1. a paid-up receipt for the previous owner’s annual property tax (IBI) to prove there are no unpaid rates from previous years
2. the Catastral certificate giving the exact boundaries and square metres of your land. The Cadastral record will be linked to the Land Register record by a cadastral reference. You should make sure that the property and land description matches
3. the licence of first occupancy or habitation certificate issued by the town hall. You will need this document to connect to electricity and water companies.
4. receipt to prove all utility bills have been paid by the previous owner
5. if applicable, a certificate signed by the President of the Community of Property Owners stating that there are no debts. You should know that if you later find that there are such debts, as the new owner, you have to pay debts for the current and previous year (two years in total)
6. Properties for sale in Spain need by law to have an energy efficiency certificate. If you are considering buying a property in Spain, the seller is forced to show you this certificate

It is advisable that you register your property in Spain under your name with the Land Registry as soon as possible to make sure your rights are protected. The notary can send a notification to the Land Registry by email once the public deed is signed.

You’ve bought a home in Spain. Congratulations! Hopefully this will be the first of many years of happiness in this beautiful and warm country. No matter if you have bought a Spanish property to enjoy during your holidays or to rent it out as an investment, you took a big step in your life.

Of course, what you do next will depend whether you are planning to be a resident or a non-resident. If you live in Spain for more than 183 days in the year then you are a resident.

In this article we clarify the next steps you need to take after you buy a house in Spain. We identify what you should do either as resident or as non-resident in Spain, and some tips for every new Spanish property owners.  

Four steps for non-residents in Spain

1. Make adjustments to receive notifications

It is important to be alerted of any official notification you are sent about your property. In Spain these notifications are sent by mail and some people ask their neighbor to keep an eye on their letterbox in case an important letter is sent. If you don’t have some way to be alerted, contract this service in Spain.

2. Have contacts in Spain  

If you are away from your property in Spain you will be worried about security and access to your property. You may want someone to clean your house while you are in Hungary or air it before you go there on vacations to Spain.

You can trust the services of a keyholding company in Spain or someone who you can keep in contact with while you are out of Spain. They will keep a set of keys and might also be able to help out if you have visitors using your Spanish property while you are away.

3. Vehicles in Spain

If you hire car in Spain then there is nothing you need to do in relation to license and registration.

If you bring a Hungarian vehicle into Spain and you want to use it for more than 6 month, you will need to register it or return it to Hungary after those 6 month.

4. Pay your taxes in Spain

As a non-resident you will have at least two taxes to pay in Spain:

• IBI (Impuesto Sobre Bienes Inmuebles) or council tax
• Imputed income tax or rental tax (in some cases a combination of the two)

You can choose the services of a fiscal representative in Spain to help you pay them while you are in Hungary. Having a fiscal representative involves less risks.

However, it is possible to do your non-resident tax return in Spain online if you prefer. It all depends on how much responsibility you want to have after you buy your property in Spain.

If you are intending to rent out your property in Spain it is a good idea to have a representative as you will have to make quarterly tax declarations.

Five steps for residents in Spain

1. Obtain your civil residency in Spain

The big issue once you have bought your property, if you are intending to live in Spain, is paper work. You will need to make sure that you have:

• A NIE ( foreigners’ identification number)
• A Residencia (certificate to show that you are registered as a civil resident in Spain)
• Registered on the padrón

Although there will seem to be a lot to do, it doesn’t have to all be done at once. You can apply for your NIE and Residencia together, this is the most important first step. If you have bought a house in Spain you will already have an NIE. You will need to protect yourself against frustration when things don’t go to plan.    

2. Make a Spanish tax return

In most cases residents must also make a resident tax declaration in Spain before the end of June each year. If you have property in Spain worthing more than €50,000 you will also need to complete a 720 asset declaration.

Making a Spanish tax declaration makes it easier to prove that you are a resident in Spain.

3. Make sure you comply with driving laws

If you are driving in Spain you will also need to change your driving licence to a Spanish driving licence at some point (you have two years to do this after you obtain the Spanish residence).

If you have a Hungarian-registered vehicle, you will need to have it re-registered in Spain within a month.

4. Make sure you are eligible for the health care you need  in Spain

Once you are registered on the padrón, you can then apply for your SIP card (Spanish health card) if you are entitled to state health care in Spain. If not you will need to make sure you have private health insurance or buy into a state health insurance scheme.

5. Make a Spanish will   

If you are moving to live in Spain it is important to make a Spanish will if you want to ensure that your wishes are safe after you die.

Non-resident and resident in Spain

There are some jobs that you should do whether you are a resident or a non-resident.

Organize your utilities in Spain

The utilities should have been changed into your name at the point of the sale. However, there are some good housekeeping activities in Spain that we recommend you initiate.

• Organize a utilities file beginning with your first bill for each – make sure that all the details on these are correct
• Make a note of how often you will be charged for each utility and build this into the calculations of how you much you will need in the Spanish bank
• Keep in mind the seasonal variations
• Keep a directory with the names of the provider of the service and emergency contact numbers or website addresses

Banks in Spain

You will need to make sure that whatever bank account you have in Spain reflects your residency status. If you are a non-resident you will need a non-resident account, for example.

If you do have a non-resident account you will be asked to sign a declaration to this effect every couple of years. This is just to confirm your status as a non-resident in Spain.

If you are a resident in Spain and have a regular income you might be able to get an account with reduced charges and should make enquiries. Don’t forget to let your bank know either if you change your residency status.

Online banking in Spain offers the opportunity of managing your affairs better. Make sure your bank gives you access before leaving their offices.

Insurance in Spain

You will want to make sure that your property is covered by a home insurance in Spain. You should doubt about taking out insurance with the Spanish bank. There are many insurance companies in Spain that might be able to offer you better rates and conditions than banks.

Arranging the nice little extras

In this article we’ve talked about some of the more routine actions that you must take after you’ve bought your Spanish property. There are many more ‘fun’ ones too.

• Exploring the area where you are going to live
• Making decisions about the internet and TV
• Buying furniture and decoration for your new home in Spain
• Getting to know your neighbors and the community of owners
• Finding the best local shopping center

During this time there will be many things to face. But after dealing with some Spanish bureaucracy issues you will find yourself totally at home and feeling that you made one of the best decisions in your life.

For Hungarian people as EU residents, there are no limits about working or starting a business in Spain, other than adapting to local regulations and taxes. One of the most common ways to do this is by renting out their property during the time they are not using it, or by turning their home in Spain into a B&B business. 

If you don’t see yourself doing that, you can also start your own business in Spain. You can buy a franchise, an existing company or start something from the beginning. This is not an easy option and it involves some risks, but if you have experience in running a company it could be a good way to keep your lifestyle when moving to Spain. You have to take into consideration economic conditions, it can be tough to start your business in Spain as a foreigner – regulations in Spain might not work out for you, and of course there is also a language barrier. 

You also need to think about the logistics involved to earn a living in Spain. Running a bar or restaurant is a popular option among Hungarians when moving to Spain, but you will need to make a good research before you initiate the project of opening a bar/restaurant in Spain. How is the competition like? Who will be your clients? How season is going to affect your business in Spain? How will you find suppliers? If working with your partner, how will this affect your relationship? How many hours do you want to work each day, will you be happy work on weekends? When you deeply think about these questions, you will have a better idea of what type of job you are prepare to do in Spain.

Another option is to create a business online. Find in your skills something you are good at to sell as a service or product, something that allows you to work from home– as a writer, editor, programmer, graphic designer, project manager, accountant, telesales etc. The great thing about Internet project work is you can choose how busy you want to be.

It is always important to remember that it might be hard to compete with the local market. Spanish market is quite saturated and unemployment rates are quite high among some sectors.

Whatever you decide to do to earn money in Spain, make sure you budget the expenses and incomes you are going to get before leaving. The safest way to do this is to contact a recommended financial advisory firm in Spain.

You don’t need special skills about legal issues, to know how the property buying procedure works in Spain, but it is advisable to learn the basics. We collected some tips to help you understand the buying process in Spain on a fast and easy way.

Some of the tips may seem obvious, but before you buy a property in Spain, the excitement can cloud your mind and easily make mistakes. So, take these tips into consideration during the whole process.

Buying a property in Spain -Tip 1

Do some research before you start the real search. Find out about the area where you want to buy and get a basic knowledge about the buying process in Spain. However, don’t get too deep into details, if you find a good lawyer in Spain he will know how to proceed, but having a general understanding can be useful.

Buying a property in Spain -Tip 2

Think about your budget, how much money are you able to spend on a property in Spain? Make sure to add an additional 15% to that budget in case additional costs appear.

Buying a property in Spain -Tip 3

Take care about the running costs. You will have IBI (rates) to pay, rental income tax or imputed income tax, electricity charges, water and waste and community fees. Make sure to take in account all of these expenses when buying a property in Spain.

Buying a property in Spain -Tip 4

The property must satisfy your needs now and in the future, Do you prefer to be close to shops or do you prefer a villa in the countryside? That is an important question you need to ask yourself before you start viewing properties in Spain.

Buying a property in Spain -Tip 5

It is a buyer’s market, so don’t feel pressure to make a decision fast. Ask to see the properties again, at different times of the day and on different days of the week.

Buying a property in Spain -Tip 6

One of the most important tips for buying a house in Spain is not to sign anything or pay anything until you have a legal check of every clauses on the purchase contract. This is really important and people can be easily persuaded that it’s not necessary, but it is.

Buying a property in Spain -Tip 7

It is also really important to invest in a good lawyer in Spain. If you are going to buy a property in Spain you need to do it right. Legal advising is worth it, to make sure someone is serving your interests.

Buying a property in Spain -Tip 8

If you want to make changes to the property, rememberthat you will need planning permission in Spain. It may look as you don’t need to do that, but authorities are getting stricter with this matter and they can charge you with penalty fees for that.

Buying a property in Spain -Tip 9

If you are planning to rent out your property in Spain check what the arrangements are in the region where you are buying. There can be big differences in Spain between regions when it comes to purchase or rental an apartment. Check that out before buying, especially if you plan to rent out the property you are buying.

Buying a property in Spain -Tip 10

Prepare for the weather. Spain is not a cold country on a daily basis but the months of December, January and February can be cold. You should consider how you will keep warm in the winter as well as how you’ll keep cool in the summer.

Spain is a wonderful country with a rich legacy and lots of lovely sunny days. Buying a house in Spain is a dream for many people from all over the world and with the fall in house prices, buying is affordable for more Hungarian people.

Use our tips for buying a house in Spain to have the best of the experiences!

When Dóri retired, buying a property in Spain was a dream she wanted to come true. She was already familiar with the White Coast (Costa Blanca) since she spent her summer vacations there for a few years, and she thought the location was perfect to travel around Spain.

Soon after she started searching for a property in Spain, she found the perfect home, but unfortunately it was about to be purchased by a family of 4, so she understood that she had to move forward and search for another property.

2^nd time lucky

The second property was close from the one Dóri first saw,. She waited for a couple of months for a final decision from the owner until she was told that she could buy and Dóri´s offer was accepted.

Dóri was really pleased, since it didn’t take much more than a couple of months to have the keys of her new house in Spain.

The Spanish house she bought is a bungalow with 3 bedrooms and a swimming pool. This space allows Dóri to invite family and friends from Hungary to stay and enjoy the peaceful Spanish lifestyle this property offers.

Choosing a solicitor in Spain

Dóri did not have any ideas about how to purchase a house in Spain. Lukentum was recommended by some Hungarian friends she met during her vacations in Spain. They told her that the whole process was easy and smooth, and also that Lukentum informed them about every step they took on their behalf.

Dóri was worried about the currency, since she had to transfer the money from Hungary and the conversion could be a barrier when purchasing, in some cases increasing the price of the property in Spain. She appreciated the information and guidance Lukentum gave her.

While the purchasing process took place, Dóri decided to rent an apartment in Alicante for a few days. This was a good decision, since she could take care of all the signings and issues regarding the acquisition of her new Spanish property. She could also spend some time discovering the place, enjoying the town and walking along the beach.

Looking forward

Does she have any tip for those who are planning to buy a property in Spain? “Make sure you have some money left besides the costs of the house, since the legal fees and taxes in Spain I had to pay were high. You could save struggling with that issue if you included in your budget”.

Arranging any mortgage in Spain can be a daunting prospect. For the uninitiated, it’s difficult to know where to start and whether information you see or receive is correct.

This is complicated by the fact that banks in Spain do not always offer the same conditions to clients, even if they have similar profiles. The mortgage market in Spain is quite traditional in the sense that having the right contacts is crucial if you want to get the best deals.

Mortgage Products

Non-resident mortgages (60-70%) – for Hungarians who pay their taxes outside Spain, the maximum mortgage amount is 70% of the purchase price (or valuation if lower), but some banks have a maximum amount of 60%. For Hungarians in Spain who are fiscal residents and pay taxes in Spain, the maximum mortgage is 80%.

Mortgages for retirees – If you are over age 60 and in receipt of a pension, you can still have a mortgage in Spain in your own name. It is also possible to appoint a guarantor such as a family member to secure the borrowing.

Construction mortgages – for those Hungarians wishing to build their own homes, banks offer construction mortgages in Spain. These are complicated to explain and you should definitely speak to an expert (lukentum can offer you this service), but broadly-speaking you can potentially borrow in Spain 60-70% of the land and construction costs combined.

Commercial – If you are buying a property for commercial use in Spain, such as a restaurant or a shop, for example, the maximum mortgage is 50% of the price (or valuation if lower). If you intend to run a business in Spain the lenders will ask for business plans and, where applicable, accounts for any previous business operating at the premises, as well as what previous experience you have had running a similar business in Spain or in Hungary.

Mortgage Conditions in Spain

Interest rates in Spain – Most lenders use the annual Euribor as the base rate and then add their own margin to this: “Euribor plus X%”. Generally speaking, they require that you contract different products with them and they give discounts to the rate for taking each product. Compulsory products are usually a bank account with the bank in Spain offering the mortgage and home insurance in Spain with that bank’s chosen insurer. In some cases, life insurance in Spain with the bank’s chosen insurer is also compulsory.

By using our services we can secure a much lower rate than if you go direct to a bank in Spain. Although the vast majority of mortgages in Spain are variable, fixed rates are becoming more popular, especially now that the Euribor is at its lowest ever level.

Interest-only in Spain– this is normally only offered for construction mortgages in Spain and, where offered, it is only for 1 or 2 years at the start of the term.

Term of mortgage – most mortgages in Spain can be arranged with terms of 25 years (for non-residents) and 30 years (for residents), usually up to a maximum age of 75. For non-residents, some banks in Spain have a maximum 20-year term.

The Qualifying Criteria in Spain

The lenders all use what is known as a debt-to-income calculation as the basis for deciding whether applicants will qualify for a mortgage in Spain. In basic terms, this means that your monthly debt commitments, including the new mortgage, must not exceed a given percentage of your net monthly income.

The typical percentage in Spain is between 30-35%.

There are many other variables to take into account, when asking for a mortgage in Spain but this gives a very basic idea of how the banks assess the applicants for the mortgage.

Application Process in Spain

• Initial, no obligation, assessment – we will advise you on whether a mortgage approval in Spain is likely and what conditions could be possible.
• Mortgage quote – following the initial assessment, we will aim to send a full mortgage quote.
• Sign up – if you wish to proceed, we will ask you to sign the terms and conditions.
• Submit application form – we will assist you with completing the relevant application form and we will submit this on your behalf with the appropriate supporting documents, which will be requested once you have agreed to proceed with the application.
• Decision from lender – if the mortgage in Spain is approved, we will confirm the conditions and ask if you wish to proceed.
• Set up bank account and instruct valuation – a bank account in Spain will be set up and you will be asked to deposit enough funds to cover the valuation fee.
• Valuation report in Spain– if the valuation is no lower than the agreed purchase price and the property has no legal issues, the completion arrangements can be made.
• Completion arrangements – we will work with the bank and your lawyer and they will confirm the funds necessary for completion, which must be transferred as soon as possible to your account with the lender. Once the funds are in the account, the lender will prepare everything and you can decide on a completion date at the Spanish notary.
• Completion day – the lender will draw up all the necessary cheques and arrange payment of the property in Spain and mortgage taxes from these funds. Once the property and mortgage deeds are signed, you become the owner of the property in Spain.

Timescales

The mortgage process in Spain from start to finish usually takes 6-8 weeks, but there can sometimes be delays that are outside of the control of us or the lender. We can advise on sensible timescales for payment of deposits and timing of completion, as well as deal with any delays if they arise.