Lenders may request a large amount of documentation, depending on their risk criteria and, of course, your specific profile.

To speed up the process, we recommend having the following documentation ready before selecting the best mortgage:

General Documentation:

DNI or NIE (provided by Digimort to the bank), Tax return (IRPF) (provided by Digimort to the bank), Deposit contract (if signed), Deeds for any properties you own, Rental contract and recent rental receipts (if applicable), Updated employment history, Recent bank statements, Loan payment receipts (if applicable)

Costs you need to cover:

1. Simple note: €10–€15, depending on urgency.

2. Appraisal: €250–€600, valid for 3 months.

3. Linked products: Consider not just the mortgage payment but also the cost of additional linked products.

Costs covered by the bank:

Stamp Duty (AJD): Between 0.5%–1.5% of the loan amount, depending on the region.

Notary fees: Around €1,000.

Property registration: Around €500.

Management fees: Around €500.

The mortgage term is a personal choice, and the bank only cares that you meet financial requirements and can repay the loan.

Key factors to consider are your income and savings capacity:

1. Avoid payments over 35% of your income. Consider that interest rates may rise, and could exceed your comfort zone (e.g., if the Euribor returns to pre-crisis levels of around 5%).

2. Shorter terms are easier to adjust. Don’t stretch too thin—ensure you can still comfortably afford payments.

3. Shorter terms mean lower interest rates and less overall cost.

The goal is to balance the shortest term possible with financial flexibility.

If you have significant savings and income, a shorter term makes sense.

If your savings are tight, longer terms (e.g., 30 years) offer more flexibility, reducing the risk of needing to renegotiate your mortgage later.

1. VAT or Transfer Tax (ITP):

-New homes: 10% VAT (4% for official protection homes) + AJD (0.5%-1.5%).

-Second-hand homes: ITP between 6%-10%, depending on the region.

2.Non-Residents Income Tax (IRNR):

Annual tax based on the property’s cadastral value, even if not rented.

Rental income is taxed at 19% for EU residents, 24% for others.

3. Wealth Tax:

-Payable if your total assets in Spain exceed €700,000 (varies by region).

4. Plusvalía Municipal:

-Paid by the seller but relevant if you plan to sell, based on land value increase.

Other Costs:

-Notary Fees: 0.2%-0.5% of the purchase price.

-Valuation Fees: €300-€600.

-Administration Fees: €200-€400.

In summary, there are various taxes and fees to consider when buying in Spain, which depend on whether the property is new or second-hand and your region. Non-residents also have ongoing tax obligations. It’s best to seek advice to avoid surprises.