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Read the frequently asked questions

Can’t find an answer to your question? Please send an email to: info@wecaremortgages.com or call us on +34 952 263 023.
Does ‘subject to funding’ exist in Spain?

No, this is not a usual clause in a purchase contract in Spain. We suggest you complete our Mortgage Quick Scan to find out the maximum amount you can borrow in Spain.

Please note that if you pay a deposit or down payment on a property, you will lose the deposit if you are not able to finance or pay for your house.

Does ‘subject to a technical inspection’ exist in Spain?
No, this is not common in Spain. You can include this as a dissolving condition in the contract, but the seller has to agree to this condition. In Spain, a technical report is prepared if there is a specific reason for it, which is not often the case. A valuation report for the mortgage bank is not a technical report.
Does ‘subject to defects’ exist in Spain?

In Spain we often say ‘What you see is what you get’ or ‘You buy what you see’. On new housing construction there is a guarantee of 10 years. On existent properties there is no guarantee. You may include a ‘subject to defects’ condition in the contract, which allows you to renounce the property if the repair costs exceed a certain amount. The seller has to agree with this condition.

Does a notary in Spain give me sufficient protection when buying a house?

The tasks of the notary in Spain are different from those of a notary in other countries, including England. The main difference is that the Spanish notary is not required to know the content of the contracts. This means that you need a lawyer or legal adviser to draft the purchase contract and check the legal documentation and status of the property. The lawyer or legal advisor perform the due diligence and vet all relevant documents in the purchase process. A legal advisor or lawyer is also often engaged for the negotiations. WeCare Mortgages has a large network of legal advisors and lawyers that we recommend for our clients in Spain. Please contact us if you would like to be referred.

What is the duration of a mortgage application?

The average mortgage application process takes about 4 to 6 weeks.

When is an appraisal report or valuation valid to a Spanish bank?

Not all valuations are valid to Spanish banks. Official valuations in Spain are carried out by a licensed valuation company registered at the ‘Banco de España.’ A real estate agent in Spain is not authorized to carry out a valuation for a Spanish bank. A valuation is valid for 6 months. Unless a Spanish mortgage bank instructed the valuation itself, it may not accept the report or valuation. WeCare Mortgages can arrange for valuations which are accepted by the Spanish banks. Please contact us for more information on valuation reports.

Is a valuation always necessary?

Yes, regardless of the loan amount, a valuation will always be carried out by an independent, licensed appraiser appointed by the bank. The costs are usually around €400, depending on the value of the property.

What is Euribor?
Loans in Spain are usually based on a variable Euribor interest rate. Euribor is based on the rate at which the European banks lend funds to each other. The rate of the Euribor depends on the economic circumstances, such as the growth of the economy and the level of inflation. Simply stated: Euribor is the cost or wholesale rate, to which a margin is added for profit and risk.
What is the maximum mortgage in Spain?

The maximum possible loan in Spain amounts to 60-70% of the property’s lowest registered value (purchase price or appraised value). The remainder of the purchase price and related costs will need to be covered with one’s own resources.
An exception to the rule: If you buy a property from the bank, it is possible to obtain a mortgage for 100% of the purchase price. Please note that this may mean that the purchase price is too high and the bank does not want to amortize. For this reason, banks offer a high and favourable mortgage.

I don’t have own resources, can I borrow up to 100%?

No, you cannot get a 100% loan in Spain. You will always have to bring in your own resources. At Maximum Mortgage Spain you can read more about what is needed.

An exception to the rule: If you buy a property from the bank, it is possible to obtain a mortgage for 100% of the purchase price. Please note that this may mean that the purchase price is too high and the bank does not want to amortize. For this reason, banks offer a high and favourable mortgage.

Can I finance a Bed & Breakfast?
Yes, you can finance a B&B. Please take into account that approximately 50-60% will be the maximum loan you can obtain and that you cannot include the income of the B&B for the finance request. There should be income from other sources such as income from employment or self-employment. Buying and running a B&B remains most often a dream rather than a reality for most.
How do I apply for a NIE number in Spain?

Please refer to the following page for more detailed information and instruction: NIE number Spain

How long does it take to obtain a mortgage?

From the mortgage application to completion at the notary will take about 4-6 weeks.

What are the advantages of a Spanish mortgage?

One advantage of financing a Spanish property is the lowering inheritance tax in case of the death.The Spanish property is a ‘situs-good’. This means that the heirs will always pay inheritance tax in Spain in case one of the owners of the Spanish property passes away. The exemptions in Spain are very low and the rates can get very high. It is best to be advised on the specifics by a lawyer or legal advisor.  Please contact us if you would like to be referred.

Is a life insurance policy an obligatory part of the mortgage in Spain?

Usually it is. A life insurance may be obligatory but this depends on the bank. Please ask about this when you do the Mortgage Quick Scan.

Do I have to take out a home insurance?

Yes, the building rights should always be insured individually and on the policy the bank must be put as the beneficiary. Also, when you buy or own an apartment and it is insured via the Community of Owners you must take out a separate insurance for the building rights.  Please contact us if you would like a a quote for the home insurance.

What is the tax on excess value at sale?

Since January 1st 2007, the capital gains tax has been lowered for Spanish properties of non residents. Previously, the capital gains tax amounted to 35% of the difference between the purchase price and the selling price, as indicated in the title deed. As from the year 2007 this tax is 18% for residents as well as non-residents. There are exceptions for residents, please ask your lawyer about this.

What is a Nota Simple?

A Nota Simple is a registration excerpt of the property. The document includes various information on the property (number of square meters, the owner of the property, category of property, etc.).

Can I apply for a mortgage in Spain from abroad?

You don’t need to come to Spain to apply for a mortgage. WeCare Mortgages is fully digital and we can arrange everything remotely. In this case, we will have a lot of contact with you via email and telephone during the mortgage application procedure.

Do I need to come to Spain personally to sign the mortgage deed?

No, that is not necessary provided that someone else (e.g. your lawyer) can act on your behalf with a power of attorney signed by you. In that case, you can take out a mortgage through a proxy.


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