How to buy an apartment in Spain with a mortgage in 2025?
Buying an apartment in Spain on credit is the dream of many people who want to live or invest on the sunny coast. Spanish banks are increasingly willing to grant loans to foreigners, and the procedure – although it differs from the Polish one – is transparent and feasible with proper preparation. In this article we explain how to buy an apartment in Spain on credit, what conditions must be met, how long the whole process lasts, and what are the additional costs associated with a mortgage loan in Spain.
What will you find in the article?
What does the process of obtaining a loan in Spain look like step by step?
A mortgage loan for a home in Spain is a solution available to both residents and non-residents. The process of obtaining a mortgage to buy a home in Spain consists of several stages, which are worth knowing before you decide to buy a home in Spain on credit.
Step 1: Choosing a property and preliminary creditworthiness analysis
The first step is to find a suitable apartment in Spain on credit. It is worth consulting with a loan advisor or bank at this stage to preliminarily assess your creditworthiness. Portals where you can learn where to look for apartments in Spain may be helpful.
Step 2: Submitting the loan application
After selecting the property, you should submit a mortgage loan application in Spain. The bank will request documents confirming identity, income, credit history, and information about the chosen property.
Step 3: Evaluation of creditworthiness and appraisal of the property
The bank conducts a detailed analysis of your financial situation and values the property you want to buy on credit in Spain. The appraisal is crucial because the maximum loan amount depends on it.
Step 4: Credit decision
After analyzing the documents and the property’s appraisal, the bank decides on granting the loan to purchase a home in Spain. You will receive a loan offer with specified terms.
Step 5: Signing the loan agreement and finalizing the purchase
After accepting the conditions, the loan agreement and the notarial purchase agreement are signed. The bank transfers the funds to the seller’s account, and you become the owner of the apartment in Spain on credit.
More about the purchase process you can read in the article: How to buy a property in Spain?
How high a down payment do you need when buying a home in Spain?
A mortgage to buy a home in Spain requires having an appropriate down payment. For non-residents (people living outside Spain) banks typically finance up to 60 – 70% of the property’s value. This means you must have a down payment of 30 – 40% of the purchase price.
Example:
If the apartment costs 300,000 euros, the bank will grant a mortgage for a home in Spain of 180,000–210,000 euros, and the rest you must cover with your own funds.
It is worth remembering that the bank does not finance transaction costs, such as taxes, notary fees, or commissions. You must also cover these expenses yourself.
How long does the loan application review by a Spanish bank take?
Buying a home in Spain on credit is a task requiring patience. The process of reviewing a loan application by a Spanish bank usually lasts from 2 to 8 weeks, depending on the documents and the individual circumstances of the client.
- Preliminary credit decision – even within a few days after submitting the application.
- Detailed analysis and property appraisal – 1 – 3 weeks.
- Final decision and signing the agreement – up to 2 weeks after all conditions are accepted.
It is worth preparing all required documents in advance to speed up the procedure. If you want a quick purchase, use the help of an experienced advisor.
What are the additional costs related to a mortgage loan in Spain?
A mortgage loan to purchase a home in Spain comes with additional costs that should be taken into account in the budget. Here are the most important ones:
- Tax on civil-law operations (AJD): 0.5 – 1.5% of the loan value (depending on the region).
- Notarial and registration fees: about 1 – 2% of the property value.
- Property appraisal: about 600 euros.
- Bank fee for granting the loan: usually 0.5 – 1.5% of the loan amount.
- Property and/or life insurance: often required by the bank.
- Costs of sworn translations of documents: if required.
It is worth thoroughly analyzing the bank’s offer and asking about all fees before signing the contract.
Summary
A mortgage to buy a home in Spain is a real option for people dreaming of their own apartment on the Costa del Sol or Costa Blanca. The key is proper preparation, gathering the down payment and complete documentation. The process of obtaining a loan to buy a home in Spain is transparent, though it requires time and patience. Remember the additional costs and use the help of experts to ensure that buying a home in Spain on credit goes smoothly and safely.
