Mortgages in Spain
Opening a bank account
Non-residents may freely open bank accounts in euros in Spanish banks.
Non-resident account is called 'cuenta extranjera', but when it is used in Spain, it has the same properties as the account of a resident. The only difference is that the income tax is not withheld from non-resident accounts.
In addition to your regular checking account from which you pay your bills in Spain, you can open a deposit account in euros or other currencies. Interest rates will vary depending on the bank you have chosen.
You can use a mortgage loan to buy a home, as well as other residents or non-residents of Spain.
Usually, the size of mortgage rates is tied to the rate of EURIBOR and now you can find deals on the mortgage at the rate 2.0%-2.5% APR up to 25 years.
EURIBOR – European Interbank Offered Rate – weighted average interest rate on interbank credits granted in euro by the European Central Bank.
You can visit any bank and ask them to provide you 'oferta vinculante', or open offer. Spanish laws in the field of consumer protection require banking entities to introduce you a document that lists all the conditions of mortgages. This offer is valid for 10 days. This will give you time to study it. If you take some offers from different banks, you will be able to compare them.
The terms of proposals will be listed:
- Tipo nominal – nominal interest rate.
- Tipo anual efectivo – TAE – effective annual interest rate.
- The Commission for the opening – usually in the amount of one percent of the loan, although some banks charge 0.5% or even less.
- Fee for assessment – This is a fee for the assessment of the real estate the official appraiser, on the basis of which the bank decides the amount of the loan. Approximate cost – €200- €500.
- Commission for early repayment – it charged for early repayment of your loan. Typically 1% of the outstanding amount, but may be less or absent.
- Insurance – You may be asked to insure your house, if you need mortgage.
- The fee for the removal of the recording – after repayment of the mortgage you need to make sure that the record of mortgage in the Register of Real Estate has been removed and you have to pay for this service.
- Life insurance – for the banks is quite common to insist that you have acquired a life insurance policy.
Our experts are happy to recommend you a number of Spanish banks, with whom we work, and that very loyal to our customers.