Cash payment
It is normally both easier and faster to negotiate prices for your desired property if you can buy it in cash, thus avoiding long and sometimes complicated mortgage processes with Spanish banks. If you choose to mortgage a property in your home country, it counts as cash payment in Spain. However, not everyone has the opportunity to release all the necessary capital, which means that many choose to supplement with an application for a mortgage in Spain.

Mortgages in Spain
Nowadays, as a non-Spanish buyer, you can borrow up to 70% of the property's market value. However, it is unusual for banks to provide these advantageous mortgages. We therefore estimate that the normal loan-to-value ratio is approximately 60% of the property’s market value. All mortgages in Spain are subject to repayment, and a repayment period of a maximum of 20-25 years is expected. It is largely the borrower's age that determines the length of the repayment period. Generally, mortgages must be repaid on the day the borrower turns 70 or 75 years old, depending on bank branch.

If you want to apply for a mortgage from a Spanish bank, you need to complete the application with:

1. 1) A detailed account of your assets and liabilities
2. 2) 3-6 months bank statement showing your income and expenses
3. 3) The last two years' tax returns
4. 4) Copy of your 3-6 latest salary specifications / pay slips

1. 5) A new credit report
2. 
   
3. If you are self-employed, you also need to send in: 
4. 1) Latest annual report
5. 2)Declarations and tax returns of the last two years
   3) Documentation of another type of income you want to be included in the decision documentation

It may take some time for the bank to process a mortgage application. You can expect that it can take anywhere from 2 weeks to 3 months depending on your financial situation and the size of the mortgage. 
Normally you can count on the entire purchase process (incl. Contract signing, lawyers, Notary, mortgage application, etc.) taking about 3-5 months.

Spaindinavia and, above all, your legal representative will assist you during the process, with information and contacts in areas where the need arises.

Taxes
In Spain, there is a tax on pretty much everything. These are not completely fixed % rates and look different depending on which region you choose to buy in. Some taxes are paid on property purchases, others on an annual basis and some on the sale of properties. Below we describe some taxes that are added to property purchases in Spain. Remember that your legal representative is the one who gives you the details and the final figures.
Our list should only be seen as a guide.

Tax on Change of Owner of Housing (ITP)	8%, 9% or 10%	When buying a home from an existing property owner, you pay a transfer fee to the Spanish state based on the purchase price of the property: 8% for properties up to € 400,000, 9% between 400,000 - 700,000 €, 10% on prices over € 700,000
VAT on the purchase of New Development	10%	If you are the very first owner of a home, you do not pay a transfer fee to the Spanish state. However, you must pay VAT of 10% and it is mandatory when buying new production.
Stamp duty	1.5% -2%	Adds instead of ITP and only applies when buying new development where you are the first owner.
VAT and stamp duty or Tax on change of ownership of housing (ITP)	21% (villa / apartment) + 2% (premises)	Tax rate if both the seller and the buyer are companies (commercial purpose)
Notary, Legal registration fee and Registration fee in the property register	2%	The cost of a Notary and legal deed depends on several factors: Number of pages in the purchase documents, the complexity of the transaction and the value of the property. In other words, the total is different for each transaction and your legal representative will be able to give you the most correct figure.
Value added tax (Plus Valía)		When you sell a property in Spain: Plusvalia is a tax levied by the local town hall based on: the area where the property is located, plot size, the assessed value and the date of the previous transfer of title. The tax is basically a tax on the increased value of the land and can vary from a few Euros to several thousand Euros (if it is commercial real estate).
Solicitor fees	1-2%	Your legal representative handles all administration, investigations around the property, registers NIE numbers for you, opens a bank account, opens subscriptions for electricity, water, gas, etc. They also ensure that you are registered in your local municipality and are responsible for your taxes are being paid in the right time. Note that most lawyers charge a fixed fee, so the% rate should be seen as general.
Property tax (IBI- Impuesto Sobre Bienes Inmuebles)	0.5-1%	Annual property tax, based on the taxation value of the property, for all property owners, based on the assessed value. Usually between 200-600 euros per year depending on the value of the property.