Whether you are looking for a mansion or even traditional fincas for sale on the Costa del Sol, it can be important to note that purchasing a property in Spain can be a bit different to buying in the country that you’re used to. Since this is no small investment, it’s often crucial for people to take the time to better understand the mortgage process before anything else.
Fortunately for you, our team here at Luxury Property Finder Marbella are experts in the matter. We’re here to help you out by giving you a run-through on the Spanish mortgage process, so that you can make the move and start living on the Costa del Sol with as little trouble as possible.
Are there any restrictions in place?
For those who are interested in finding a good property for sale in Spain and moving over here (or even just using it as a holiday home), there is good news. There aren’t any restrictions to prevent foreigners from buying on the Costa del Sol or in any other part of the country – giving you the opportunity to get your dream home in this beautiful part of the Mediterranean with ease.
The Spanish mortgage process, step by step:
1 – Choose the best mortgage for your needs
First of all, you’re going to need to think about your different options when it comes to the type of home loan you can get. This can vary greatly depending on your wants and needs, so it’s often a wise idea to carefully consider what’s on offer.
2 – Prepare the necessary documentation
Once you know what type of mortgage you would like, you’re going to make sure that you have all the required paperwork before you proceed – and to avoid delays and other issues later on, it’s best to ensure that you provide a clear and complete file of everything that’s necessary.
3 – The underwriting process
After all the required documents are submitted to the bank, you’ll need to wait for them to approve the request before continuing (it’s worth noting that higher loan amounts may take a bit longer and might have extra requirements).
4 – Get a valuation of the property
When your proposal is accepted and you have been given an offer, you’re going to need to get a valuation of the property, as the offer will always depend on the valuation’s results. In a normal case, this shouldn’t cause any problems, although if there is a big difference between the valuation and proposed purchase price, the bank may change their offer.
5 – Approval by the notary
After the valuation is complete and everything has been taken care of, the bank will produce and send a FEIN document (Ficha Europea de Informacion Normalizada) to the notary, for them to check that everything is correct and above board.
6 – Completion
Before completion, you’ll need to have a meeting with the notary, where they’ll explain the details of the mortgage. You’ll need to take a small test to show that you understand everything before the transaction can be completed.
Other considerations
- You’ll need a Número de Identificación de Extranjeros (NIE), which is an ID number for foreigners (you can start the application at any local police station in the country, or contact your local Spanish consulate if you’re outside of Spain)
- Spain’s capital gains tax of more than 20% can offset any benefits of buying for short-term investors
- Property transaction costs can be between 10-15% of the house’s value
- With an investment of at least €500,000 (without financing), home buyers can receive a golden visa (allowing them to live here and travel throughout Europe, although there are limitations)
- There are different property taxes, which you should consider before buying. For example, non-residents need to pay Spanish income tax, plus another tax on Spanish assets in some cases
- Home insurance is a requirement here – and while life insurance isn’t, most banks will advise you to have it
Want to save time, money and effort? Get in touch with us
Homes in this luxury coastal region tend to go quickly, so if you want the best Costa del Sol property for sale 2020, it might be worth looking into buying as soon as possible – and since we are a team of experienced property finders, we could help you with that. If you want to find the best houses for sale in Marbella, or any part of the region for that matter, contact a member of our team and we’ll see what we can do for you.
