Required documents for a Spanish mortgage application
In Spain self certified or limited document applications don’t exist. All Spanish mortgages are granted on a full status basis. Therefore each bank will require evidence. This is official documentation on incomes and debts. In conclusion understand the required documents for a Mortgage in Spain. Whichever country you reside in.
Employed individuals requirements
- 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
- Bank reference
- 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. The 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.
Spanish Banks cannot credit search direct. Applicants must provide their credit files.
Self employed requirements
When applying for a Spanish Mortgage Self employed applicants need to provide company and personal information.
Company owners and sole traders
- 1 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
- Bank reference
- 2 years company accounts. To include profit and loss and balance sheet
- Accountant’s reference. Confirmation of the company and individual’s activity. Also fiscal strength. Finally a wealth and liability statement.
- Copy of a personal credit file. Annual debts statements
- Copy of passports
For instance Banks will class as self employed anyone who owns more than a 25% share. In the company they work in.
Other documents required for a mortgage application in Spain
Specific property required by some Spanish Banks
The Nota Simple. This is a simplified version of the property deeds.
Required to enable valuation
Required before completion
NIE certificates. Personal tax identification. Therefore originals required 48 hours before completion
Copies of documents are used for application. However before completion originals must provided.
Also Non Spanish documents may require official translation
Evidence of deposits and their source
Because of Money laundering, Spanish Banks are obliged to evidence source of funds for deposits. Firstly many Spanish Banks will insist that deposit monies are sent to the account with them. Secondly gifted deposits or deposits raised from borrowing are generally not acceptable, to lenders in Spain.