Acquiring property in Spain is an aspiration for many non-residents, whether as an investment, a second home, or a retirement plan. However, Spanish legislation for obtaining a mortgage can seem complicated due to the amount of required documentation. Below, we detail the essential documents you will need to present when applying for a mortgage in Spain:

1) Last 2 Income Tax Returns 

The income tax return is the first filter banks use to analyze your documentation. Some of them may reject your application if your economic activities do not generate sufficient income.

Likewise, this allows the bank to verify your fiscal situation and country of residence. The bank might request an additional return if the situation requires it.

2) ID and NIE

The Identity Document and the Spanish NIE (Foreigner Identification Number) are essential for any legal procedure in Spain.

Specifically, it is important to obtain the NIE in advance, as it can sometimes take several months, and it is required for any financial and legal transaction in the country.

3) Payslips from the Last 3 Months

Payslips are the most direct proof of your monthly income. If you are an employee, you will need to present your payslips from the last three months.

These payslips help the bank verify your monthly income and the stability of your employment, which directly affects the economic effort indicator. Ideally, the payslips should be as stable as possible.

The famous annual bonuses do not carry enough weight unless they have been received consecutively, at least, 2 consecutive years.

4) Proof of Deposit

This document is to demonstrate that you have the necessary funds for the initial deposit on the property. The document used cannot be any sort of screenshot nor photo, and the funds must be fully liquid or able to be liquid by the payment day.

Typically, this is done through a letter from your bank confirming the availability of the funds or a copy of the bank statement showing the money reserved for this purpose.

The deposit amount is usually 30% of the property price, although it can vary depending on the operation and how much risk your profile can tolerate. Therefore, it is advisable to visit a mortgage advisor who can guide you and help you plan the purchase of your home without surprises.

5) Proof of Residence

This can be your rental contract or the title of your property from the registry, although in certain cases, utility bills are also accepted. This has two purposes:

A) Verify your current address and residence outside of Spain.

B) Check if there are expenses associated with your residential status, such as rent or a mortgage if you own a home.

6) Credit Report

The credit report is probably the least known document on the list. Its function is to check all debts incurred outside of Spain, as Spanish banks do not have access to the credit databases of other countries.

This document should be requested as close as possible to the time of your application to the bank, as they cannot access the databases and may reject it if it is sufficiently old. Generally, your credit report will be accepted if it was issued less than 6 months ago.

This document can vary depending on your country, although in many of them, one from Experian or Equifax is expressly requested.

7) Bank Statements from the Last 6 Months

Bank statements are necessary for the Spanish bank to review your recent financial transactions, verify the stability of your income and expenses, and evaluate your financial management.

8) Property Registration Extract (Nota Simple)

The Nota Simple is a document that provides detailed information about the property you wish to buy. This document is obtained from the Property Registry in Spain and includes data such as the description of the property, the current owners, and any charges or encumbrances on it.

If we mentioned before that personal identification is essential, we could say that the Nota Simple is the identification of the property. Therefore, it is essential for the bank to evaluate the value and legal status of the property.

9) Sales Contract

The sales contract is the purchase agreement between you and the seller of the property, so it is the conclusive proof of your acquisition. It generally includes an initial deposit that will be deducted from the final purchase price upon finalizing both the purchase and the mortgage.

10) Appraisal Report

The appraisal report is a document prepared by a certified professional appraiser that determines an independent reference value of the property you wish to acquire. 

The report is crucial for the bank as it guarantees that the property has sufficient value to cover the requested mortgage.

Keep in mind that the bank may request additional documents if your situation requires it. In general, applying for a mortgage in Spain is not complex, but it involves a process that requires proper organization and order. Having these documents ready allows the bank to prepare and analyze your risk profile, so it is crucial to understand your strengths and weaknesses.

How can I accelerate the process?

You can accelerate the mortgage financing process in Spain with the help of Hoteland’s qualified mortgage advisors.

We analyze your documentation and create the best possible profile and financial history to secure the most favorable conditions. Our expert consultation, assistance with NIE acquisition, and organization of financial documents such as income tax returns, payslips, and bank statements streamline the process.

Additionally, we guide you through obtaining the correct credit report and handle the legal aspects efficiently, ensuring you navigate the complexities quickly and increase your chances of mortgage approval.