FAQ

When buying a property and getting a mortgage in Spain, you’ll need to provide these documents:

• NIE number - Número de Identidad de Extranjero
• Copy of Spanish National Identity card or Passport
• Payslips for the last 3 months
• Annual tax payments and deductions
• Last 3 years' financial records for sole traders
• Last year's tax return
• Proof of your main residence
• Employment contract
• Bank statements from the last 6 months
• Statements of savings and investments (to verify the source of the deposit)
• Credit report

In some cases some other additional documents may be required by the bank. We can help you understand what documents you need, get in touch by submitting a form.

At Casateka, we calculate your mortgage quickly because our system is connected to the main banks of Spain. We just need you to provide us with basic information like the value of the property, the savings you can contribute, and the term in which you want to repay the loan.

The maximum Loan to Value is:

- Up to 70% for non Spanish residents

- Up to 80% for Spanish residents (90% in some specific cases).

If you want real offers from banks, with preferential conditions, at Casateka we can get them for you. We will study your profile and assign you a mortgage manager who will accompany you until the day you sign your mortgage.

• Fixed-rate mortgage: the monthly payment remains constant throughout the loan period.
• Variable-rate mortgage: the monthly payment varies during revisions (usually every six or twelve months) based on the agreed reference index (typically Euribor).
• Mixed-rate mortgage: initially functions as a fixed-rate mortgage, then switches to a variable rate. Various mixed-rate loan options are currently available.

These are fees for services or products provided by the bank. They include:

• Opening commission: charged at the beginning of the loan to cover the cost of mortgage processing. Typically ranges from 0.5% to 1.5%.
• Early repayment commission: charged for paying off part or all of the loan early. Since the June 2019 reform of the Mortgage Credit Law, these fees have been reduced (2% during the first 10 years and 1.5% thereafter for fixed-rate mortgages; 0.25% or 0.15% for variable-rate mortgages, depending on whether the amortization is set for three or five years).
• Subrogation commission: charged for switching banks. The law allows a fee of 0.15% of the outstanding capital if the subrogation occurs within the first three years of the mortgage.

Expenses incurred in acquiring a mortgage are divided into two categories: property purchase costs and mortgage formalization costs.

A) What are the specific costs for a new property?

For new properties in Spain, the costs include:

• VAT (IVA): 10% on the mainland and 6.5% in the Canary Islands.
• Notary fees: Necessary for formalizing the purchase, typically around 450 euros.
• Registration fees: For registering the property in the land registry, usually between 0.1% and 0.3% of the property's price.
• Management fees (Gestoría): Often hired to handle the transaction, costing between 200 and 350 euros.
• Stamp Duty (Impuesto de Actos Jurídicos Documentados, IAJD): A tax on legal documents, applicable only to new properties, ranging from 0.5% to 1.5% of the property's value.

B) What are the costs for a second-hand property?

For second-hand properties, the costs include:

• Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP): Varies between 4% and 10% of the property's cost, depending on the autonomous community.
• Notary fees: Necessary for the purchase, usually around 450 euros.
• Registration fees: For registering the property, typically between 0.1% and 0.3% of its price.
• Management fees (Gestoría): Often hired for the process, costing between 200 and 350 euros.

Mortgage formalization expenses are the costs associated with the procedures required to open a mortgage. These expenses are the same whether you purchase a new or a second-hand property. Some of these expenses are covered by the bank, while others are borne by the customer.

Below is a detailed breakdown.

Expenses are Covered by the Bank:

• Management Fee: usually, a management company is hired to carry out the entire procedure.
• Registry Fee: the mortgage formalization is recorded in the property registry, along with the purchase-sale document.
• Tax on Documented Legal Acts (IAJD): this tax is levied on notarial, commercial, or administrative documents.

Expenses are Covered by the Customer:

• Appraisal Fee: this is the process to estimate the true value of the property, usually costing around €315.
• Notary Fee: mortgages are signed before a notary, and this procedure costs about €50.

Our experts in mortgage subrogation will call you, analyze your case to understand your current conditions and study the viability of your profile to opt for a mortgage change.

If you decide to start working with us, they will carry out all the application management for offers on your behalf, and accompany you until the signing of your new mortgage.

Remember: our service is completely free, we are independent and you do not acquire any commitment.

In return, you obtain great advantages, save time, save money, and make the most accurate financial decision about changing your mortgage. Submit your application.

In principle yes. As long as the mortgage in Spain will have been repaid by age 75 (or 80 in some of the cases) and as long as 1/3rd of the total net monthly pension income supports the new Spanish mortgage payment.

Both banks and mortgage brokers can help you secure a great home loan deal, brokers offer an additional service that simply isn't available with lenders – guidance throughout the entire lending process. As a mortgage broker we work with all Spanish and international banks lending in Spain. Submit your application with us.