Documents required for a Mortgage in Spain

Self-certified or limited-document mortgages don’t exist in Spain. All Spanish mortgages are granted on a full-status basis, meaning each bank requires official evidence of both income and outgoings. We’ll make sure you understand exactly what each bank requires to underwrite your mortgage in Spain — and why — based on your country of residency and employment status.

We draw on our experience to ensure your Spanish mortgage application is backed by the right documents from the outset, giving us the strongest position to negotiate the best possible terms and conditions on your behalf.

Spanish Mortgage document requirements for an employed or retired applicant

Employed individuals are those contracted and paid by a third party. Anyone owning 25% or more of the company they work for is classed as self-employed. Length of service and the type of employment contract can also affect what you’re able to borrow. For experienced advice on what you’ll need to present for a Spanish mortgage application, contact us today.

• 1 to 2 years P60 (unless you’re an expat based in a non-tax-paying jurisdiction)
• 6 months of personal bank statements showing salary-pension being received and everyday activity
• Employer’s reference-contract of employment or yearly pension statement
• Copy of a personal credit file and/or annual debt statements
• Copy of passport
• Applicants who hold investment properties will need to provide rental contracts, along with bank statements showing rental income being received, for the Spanish bank to review

Joint buyers without income will still need to provide a credit file and passport when applying for a Spanish loan.

Self employed document requirements for a Spanish mortgage application

When applying for a Spanish mortgage, self-employed applicants need to provide both company and personal information. Affordability is assessed against the individual’s personal financial situation — however, the lender will also want to see company details to confirm the business can sustain the income levels required to support the mortgage.

• 2 to 3 years of personal tax returns, covering income drawn by the individual
• Last 6 months of personal bank statements showing income received and everyday activity
• 2 years of company accounts, including profit and loss statement and balance sheet
• Accountant’s reference, confirming the company’s and individual’s activity, along with projected financial strength
• Net wealth and liability statement
• Copy of a personal credit file and annual debt statements
• Copy of passport

Self-employed applicants who hold investment properties must provide the same additional information required of employed individuals.

Additional documents required before completion, for a Mortgage in Spain

On top of the financial information required, Spanish banks also need full property information before a binding formal offer can be issued — along with confirmation that the borrower has met all legal obligations needed to complete the purchase.

• Address of the specific property, once an offer has been accepted
• The Nota Simple — a simplified version of the property deeds, required to enable the valuation
• NIE certificates — personal tax identification certificates, with originals required 48 hours before completion

Copies of documents are sufficient for the application stage, but originals must be provided before completion. Some non-Spanish documents may require official translation.

Spanish banks generally cannot run credit searches directly, so applicants must provide their own credit files — which means no search is registered against your credit file.

If you have any questions about what documents you need for a Spanish mortgage application, and when they’re needed, contact us.

Evidence of deposits and their source

Because of money laundering regulations, Spanish banks are obliged to verify the source of funds for deposits. Most Spanish banks will require deposit funds to be sent, before completion, to the account you must open with them. Problems can arise if it isn’t clear where deposit funds have come from — the bank needs to be satisfied with the source of the funds and see proof of this before granting the mortgage.

• Savings are an acceptable source of funds
• Funds raised from the sale of another property are also accepted
• Deposits raised from the sale of other owned assets won’t cause any issues
• Crystallising bonds or shares will be considered, provided it doesn’t affect your income
• Gifted deposits from a third party or family member can create complications during the application
• Raising a deposit through borrowing is not considered acceptable

Avoid complications before completion. Check with us today whether the source of your deposit funds — and when you’ll be able to prove it — could affect your mortgage application.