If you are a foreigner interested in investing in property in the beautiful Costa del Sol region of Spain we have some news to share with you. One of the advantages of Spain is that it allows foreigners to purchase real estate—a privilege not granted by all European Union countries. In fact, Spanish banks provide mortgages to foreigners, making property ownership in this stunning coastal area a viable option. In this blog post, we will explore the key details you need to know about getting a mortgage in Spain as a foreign buyer.
When it comes to mortgage applications, Spanish banks typically grant mortgages up to 60 or 70% of the property's price. However, the exact percentage offered can also depend on the client's nationality and the currency in which they receive their income.
The mortgage application process involves two phases. Initially, the bank will evaluate your financial income to determine if it is sufficient to cover the monthly mortgage payments. Once this is complete, the bank will then evaluate the property itself, considering various factors in their decision-making process.
In general, banks do not require an official translation of financial documents for mortgage applications. However, it is worth noting that some banks may have specific requirements. It is also important to remember that certain banks do not grant mortgages for rural properties.
When thinking of buying property in Spain, it is crucial to have a professional lawyer who has in-depth knowledge of the banking system and maintains regular contact with banks. Applying for a mortgage independently can be a challenging experience, with limited communication and potential issues arising. By hiring a professional lawyer, you can navigate the whole process more effectively.
While hiring a mortgage broker may seem like an attractive option, caution is advised. Not all mortgage brokers are equally efficient, and it's important to be prepared to pay a fee, typically around 1% of the mortgage capital. At our law office, we do not charge any additional fees for mortgage-related services. This approach ensures that we have full control over both the property purchase and mortgage application processes, as they are interconnected. Time is essential here, as all steps in the property purchase must align with the mortgage approval.
In conclusion, if you are considering buying a property in Costa del Sol, Spain, securing a mortgage as a foreign buyer is indeed possible. Spanish banks are open to providing mortgages to foreigners. It is highly recommended to contact a professional lawyer who understands banking system and can navigate the process seamlessly on your behalf.
Whenever you feel ready to purchase a property either in Malaga, Nerja, Fuengirola or Marbella or anywhere in Costa del Sol really, Sánchez Solicitors team is ready to assist you. You can reach out to us here.
