How to purchase your Florida dream home...

Steps to buying a property in Spain with a Spanish mortgage:

Here is some helpful advice for buying a property in Spain and securing your Spanish mortgage.

Even before you find your Spanish property, we can assist you by obtaining an agreement in principle from our Spanish panel of lenders. This will give you confidence knowing that a panel of underwriters has already briefly assessed your situation before you even go to Spain, and has agreed in principle to provide you with a mortgage for your Spanish property purchase.

1. Documents required at the early stages

When you select the property in Spain that you want to purchase, you need to obtain:

• Signed copies of Contrato Promessa de Compra e Venda (sales purchase contract)
  This document is required by all banks in Spain before a property survey can be undertaken. They should be available from the seller or the estate agent (or developer if it is a new property).
• 'Numero de Identificacion de Extranjeros' or N.I.E
  The N.I.E (Foreigner's Identification Number) is a legal requirement before completing any kind of transaction with tax implications. This can be obtained from the local commune (council) in Spain or from the Spanish

2. Spanish bank account

The next step is to open your Spanish bank account. This is a fairly simple process, and we can assist you with this from our London office if required.

3. Additional documentation you will need to provide for your Spanish mortgage

The following is a list of the usual documents that are required with your Spanish mortgage application. All Spanish mortgages need to be supported by proof of income documentation, unless you are specifically applying for the self-certification mortgage.

• Certified copy of passports
• Birth certificate
• Previous two tax returns. This can be in the form of P60’s if you are employed, or audited accounts if self employed.
• Previous six months bank statements
• Signed copy of the sales purchase contract
• Credit report
• Copy of the planning permission (if you are constructing or renovating the property)
• Letter from your employer confirming your employment with the company and salary plus three months pay slips if you are employed, or a letter from your accountant confirming your last two years net profit figures if you are self employed
• Confirmation of any other stated income
• Confirmation of any stated liabilities (e.g. latest mortgage statement)

If you are looking to rent your Spanish property:

Some items to be aware of if you are planning to rent your property.

• You may not be able to find a tenant for your Spanish property all year round. You will need to take this into consideration when working out the affordability of the property you are considering
• Costs you may incur include cleaning and maintenance.
• You may be liable to tax on your rental income. You should always seek independent advice from a tax expert.

With regards to closing costs in Spain on the purchase of your Spanish home, the general guideline is to allow 7-8% of the purchase price for property tax, and a total of around 10-13% by the time you have included other things including lawyers’ fees. You can request a breakdown of these costs from your lawyer.