Expenses arising when setting up a mortgage for a property in Spain

If you have decided to apply for a mortgage in Spain for the purchase of your home in Spain, you should keep in mind that in addition to the costs related to the loan that you will pay to the Credit Institution (bank), you will also have to settle the costs of formalizing the loan, the payment of taxes and the registration of the mortgage in the corresponding Land Registry.

Condition mortgage in Spain

The Bank should inform you of the following conditions of the loan, as well as of the costs mentioned below:

– Amount and currency of the loan;

– Duration, frequency and number of payments;

– Type of interest, periods of interest and calculation of the interest rate applicable on each moment of the life of the loan;

– Amount of each mortgage quota and table of payments showing the amount that must be paid each month.

Costs mortgage in Spain

With regard to the costs to be paid to the bank, they are usually as follows:

1. Appraisal of the Spanish property that is mortgaged;

2. Loan commission;

3. Commission by subrogation from the debtor;

4. Commission for change of conditions;

5. Commission for claims of unpaid amounts;

6. Advance, total or partial cancellation fee.

In addition to the above costs, the costs of formalization of the loan would be as follows:

– Notary in Spain: The amount to be paid depends on the amount of the loan and is fixed by Spanish legislation;

-Spanish Land Registry: The amount depends on the amount of the loan and tariffs approved by Spanish legislation;

-Stamp Duty Tax: Amounts to 1.5% of the total mortgage liability of the property in Marbella, Málaga, situated in the Spanish Andalucian region. The mentioned Spanish Stamp Duty Tax rate is charged by each individual Regional Inland Revenue in Spain so this rate may be different in each region in Spain.

-Spanish Law Agent fees for registration of the Mortgage Deed: Procedure to be carried out for the payment of taxes and the subsequent registration in the Land Registry.

The lawyers and tax advisers of our firm in Marbella, Málaga, Costa del Sol, Spain would advise you to request from the bank or our Spanish law firm in Marbella information on the total taxes and disbursements that will arise in your lending transaction.

If you wish to obtain more information, please contact one of the multilingual Spanish lawyers at our firm. At Arcos & Lamers Asociados we will clearly explain all the conditions of your loan and will assist you in the granting of your Purchase and your Mortgage Title Deed in Spain.