Buying property in Spain
How to buy property in Spain?
In this section, we will detail the procedure for purchasing a property in Spain. To buy a property in Alicante or another Spanish city, you need to get a tax number (NIE) and open an account in the local bank. To open an account, you need to collect several financial documents in your main country of residence:
1) Certificate from the employer (the company in which the applicant works). This document must contain information on the position, salary and time from which the applicant is employed. The company's contacts (address, phone numbers) must also be mentioned;
2) Payroll bill indicating the amount of the salary actually paid for the last 2 months;
3) Account statement with movement of funds for the last six months;
4) Tax return for the past reporting period;
These documents should be translated into Spanish. If you can initially get some documents in English language (if you live in the EU or the US or your employer / bank model to provide a document in English), there is no need to translate them into Spanish because today Spanish banks accept the original documents in English. Spanish banks require the abovementioned list of documents from all foreigners to ascertain the solvency of the applicant and the legal origin of the funds. To receive the NIE, you will need a pre-contract to sell an apartment or house and a few hours to visit the Migration Department of Police.
Mortgage in Spain
If you would like to get a mortgage loan to buy real estate, then there will be no problem in Spain. Regardless of your nationality, you should visit a bank with the four above-mentioned documents and fill out a credit application with the help of our specialist. In most cases, you can expect to receive 50–60% of the value of the selected property from the bank. The average mortgage rate is 4%.
It is important to keep in mind:
1) The maximum credit period in Spain: until the borrower reaches the age of 65;
2) For the examination of the application and the insurance services for real estate, the bank has to pay a fee of 2% of the requested amount of loan;
3) The amount of the monthly mortgage payment should not exceed one third of the officially confirmed income; This means that if you have an income of € 1,000 per month and you decide to buy an apartment in Spain for 100,000 euros, then you can ask for a loan from the bank for 20 years and 50% of the price because the monthly installment on the mortgage will be about one a third of your income (about 330 euros).