Documents required for a mortgage in Spain: your checklist

Whether you're planning to retire, invest in a holiday home, or move to Spain for good, having all the information in hand will facilitate a smooth mortgage application.

Continue reading to familiarize yourself with the documents required for a mortgage in Spain. 

What are the requirements for a non-resident to get a Spanish mortgage?

To access a Spanish mortgage as a non-resident, there are specific requirements that you need to fulfill. These requirements may vary slightly depending on the bank and specific circumstances, but here are some standard criteria:

1. Permanent employment - in the case of self-employed applicants, it’s required to have a solid industry background with a minimum of 2-3 years of experience
2. Minimum 6 months employment tenure
3. Minimum 2000-2500 EUR monthly net income
4. Indebtedness requirements, meaning your monthly living and loan expenses cannot exceed 40% of your monthly net income
5. Minimum 30% deposit
6. No bad credit history

Lenders prioritize reliable income sources and stable employment as key factors in assessing your ability to repay the mortgage. 

What are the documents required for a mortgage in Spain?

Usually, to apply for a Spanish mortgage as a non-resident, there are several key documents you will need to provide. These include:

1. National Identity Document or passport

You will need to submit a valid passport or identification document. If you're a Spanish citizen, you'll need to provide your Spanish DNI.

2. Proof of income 

• employment contracts
• pay slips for the last 3 months
• tax form for the last 2 years 

You may need to provide financial statements or business documents if you are self-employed.

3. Bank statements

Lenders usually ask for the last six months' bank statements to demonstrate your financial stability and ability to repay the mortgage.

4. Credit report

5. Proof of main residence

If you are a homeowner, you must provide the title deed (Land Registry) and last mortgage payment receipt if you still have debt on the property. In addition, the banks will need to know the value of the property you own and how much debt is still outstanding. Your lease agreement is required if you are renting.

6. Foreign Identity Number (NIE)

7. Proof of deposit

• savings
• investments statements 

When you've chosen the property you wish to purchase, the banks will require the following documents to assess the risk and provide you with a final binding offer:

• Simple note (less than 1 month old): a property report containing a verified description of the property
• Pre-contract: when paying the deposit for the property you will receive a pre-contract.
• Valuation report (done by a certified appraiser): an official report written by a certified appraiser containing the estimated value of the property. 

Obtaining the appraisal for the property is the final step before you can schedule the mortgage deed signing at the notary.

The good news is that if these documents are already in English, most banks do not require them to be translated or legalized. Sabadell, Santander, and UCI are among these banks.

Remember that in certain situations, banks may request additional documents on a case-by-case basis to determine an applicant's eligibility. 

What is a tax form, and what is its corresponding name in each country?

A tax form is a document used by taxpayers to report financial information to the tax authorities. The name of the tax form and its format may vary between countries, as each nation has its own taxation system and regulations. 

Here are the corresponding names of the tax forms in the specified countries:

• United Kingdom: P60
• Germany: Steuererklärung
• Italy: Certificazione Unica CUD
• Sweden: Skattedeklaration
• Finland: Verotuspäätös
• France: Avis d'impot
• United States: Form 1040

The tax form is an essential document for determining the credit offer and contains details about the income earned over the past year, alongside the taxes and contributions paid.

What is a credit report, and where can you request it?

A credit report is a document that details your credit history, showcasing how you've managed credit and repayments over time. 

When you apply for credit, lenders assess your creditworthiness by requesting credit history reports from your home country. If you are in Spain, they will additionally check the Spanish Central Credit Register (CIRBE) to evaluate your creditworthiness within the country.

You can request your credit report in the following countries from the respective agencies:

• UK: Experian 
• Germany: Schufa
• Italy: Experian
• Sweden: Soliditet UC
• France: Experian 
• United States: Equifax 

These agencies have online platforms where you can request your credit report to understand your credit standing. If you're from the UK, learn how to download your Experian credit report easily by following the step-by-step instructions on accessing your credit information.

What is the Spanish NIE number?

The Spanish NIE (Número de Identificación de Extranjero) number is an identification number assigned to foreigners in Spain. It’s a unique identification code that is used for various purposes, including purchasing properties. 

The NIE number is issued by the Spanish authorities and is required for non-residents who want to apply for a Spanish mortgage.

Steps to obtain the NIE number for a Spanish mortgage as a non-resident

When living abroad, there are different ways to apply for the NIE number:

• in-person: either in Spain or through a Spanish Consulate abroad
• through an accredited representative in Spain

The required documents for the NIE application are as follows:

• ex-15 application form (original and one copy of the filled-out and signed). The form should indicate the economic, professional, or social reasons justifying the NIE application.
• an original document (with an extra copy) explaining the reason for applying for an NIE number. This could be a purchase contract for a property or a mortgage application.
• passport and a photocopy of the main page containing your name and photo.

If the NIE is requested via a representative, the original and a copy of the representative's identity document must also be presented, with a power of attorney.

It's important to note that the NIE is typically issued within two weeks, but in exceptional situations, it may take longer. The document is usually sent to the applicant via email.

What documents are necessary for a self-employed non-resident to apply for a Spanish mortgage?

When applying for a Spanish mortgage, self-employed applicants are required to provide both company and personal information:

• National ID and NIE
• income statements for the past 2 years
• annual accounts for the past 2 years
• accountant’s reference (the letter must indicate the name of the company, the sector in which it operates and registry details, confirmation of turnover, and corporate profit for the last 2 years together with the salary, dividends, and bonuses)
• Bank statements for the past 6 months
• Credit report
• Annual VAT return (P45 if you’re working in the UK)

In addition to the documents that most banks typically request, you may be required to provide additional information based on your specific circumstances and the risk criteria of the bank.

Is there a more straightforward solution for obtaining a mortgage in Spain while living abroad?

Securing a mortgage can be frustrating when you have to prepare and submit documents to each bank to receive offers.

Homevest is a digital service that streamlines the mortgage application process for individuals with foreign income, making it efficient and time-saving.

This platform allows you to upload and consolidate all the necessary mortgage documents easily. These documents undergo a verification process, and if they meet the required criteria, they are shared with eligible banks.

You can request and compare mortgage offers from top Spanish banks without the hassle of repeatedly uploading the same documents for each new request.

Getting a mortgage in Spain as a non-resident can be challenging, but with careful planning and research, you can secure the financing you need to turn your dream of owning a home into a reality. 

Sources used and checked in March 2024:

1. Foreigner Identity Number

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.