What documents are required to be presented when applying for a Spanish Mortgage
In Spain non status or limited document applications do not exist. All Spanish mortgages are granted on a full status basis and each bank will require to evidence both official documentation on incomes and debts.
Employed individuals will be requested to provide
- 1 to 2 years personal tax returns (unless an expat living in a non tax paying jurisdiction)
- Last 6 months personal bank statements showing pay being received and day to day activity
- Bank reference
- Employer’s reference and or contact of employment
- Copy of a personal credit file and or annual debt statements
- Copy of passport
If an applicant for a Spanish Mortgage has investment properties the Spanish bank will want to see rental contracts and bank statements showing rents being received.
Non income contributors who are to be on the purchase will be required to provide debt information and Passport even if they are not to be a main applicant.
Spanish Banks apart from one cannot credit search non residents in their country of residency so each applicant must provide their own credit file this means no search will be registered against the applicant.
What do I need to present to Spanish Bank if I am self employed
Self employed applicants will need to provide to a Bank when applying for a Spanish Mortgage both information relating to their personal fiscal position and their companies fiscal position. All paperwork will need to be able to be linked to the individual and must support the status the applicant says exists for them.
Company owners or sole traders can expect to be requested the following
- 1 to 3 years personal tax returns for monies drawn by the individual
- Last 6 months personal bank statements showing incomes being taken and day to day activity
- Bank reference
- Latest 1 to 2 years company accounts to include profit and loss and balance sheet
- Accountant’s reference confirming the company or individual’s activity, fiscal strength and a wealth and liability statement.
- Copy of a personal credit file and or annual debts statements
- Copy of passports
Most Banks will class as self employed anyone who owns more than a 25% share in the company they work in.
What other information will be required for a mortgage application in Spain
Some Spanish Banks will require that property information is provided before an application can be risk assessed. The key document is a Nota Simple which can be supplied by the selling agent or owner.
Before completion a copy of NIE certificates will be required and the originals of these certificates must be presented at least 48 hours before completion. Under the new legislation some lenders will now insist they have the Nota Simple before a FEIN and legal and binding offer is generated.
Some Banks will accept copies when assessing an application but a few need the original documents. In all cases if the documents are in languages outside the Banks expertise or are from countries like Russia that are on the Bank of Spain warning list official translations will be required.
Evidence of deposits and their source
Under money laundering regulations all Banks are obliged to evidence and understand where monies for deposits are being sourced from. Many Spanish Banks will insist that monies for completions are first placed in an account with them. Gifted deposits or deposits raised from borrowing elsewhere are generally not acceptable to lenders in Spain.