A mortgage loan? Cash?
Lars Polegato
Lars Polegato
The way you buy a property in Spain depends on your available capital and mortgage capacity. You can either purchase with a bank loan or with cash. Even if you have the funds to buy outright, financing is often recommended to keep liquidity and possibly access a higher-value property.
For residents, banks usually finance up to 80% of the lower amount between the purchase price and the appraised value. Buyers must contribute the remaining 20% plus 10–15% for purchase costs such as taxes, notary, and registration.
For non-residents, banks generally finance between 60% and 70% of the property value. This means you should have 30–40% in savings, plus 10–15% for transaction expenses. Mortgage terms for non-residents are shorter, usually 20–25 years, and interest rates can be slightly higher.
In all cases, a NIE (Foreign Identification Number) and full financial documentation are required.
Lars is a real estate agent in the city of Santa Cruz de Tenerife, with years of work experience in the sector, where LPC Collective has developed commercial strategies to promote the purchase and sale of properties.
How do you know where to buy?
As a Real Estate Advisor, I will assist you in every step you need during the area selection. A first point to take into account, it is essential to know what you want the property for: to live, to rent it, or as an investment?
Steps in the process of buying a property.
A brief and simplified explanation of the process of buying a property.
What do I need to know to apply for a mortgage loan?
A home loan or mortgage consists of obtaining money to buy, refinance or improve a home.
