Home mortgages in Spain

spain

We offer financing and refinancing of real estate all over Spain, including the Balearic and Canary Islands, with security in the Spanish property. Our Norwegian advisers have more than ten years’ experience and in-depth knowledge in this area.

Holiday homes in Spain

A record number of Norwegians are looking for holiday homes in Spain, and cabins in Norway are being replaced with dream homes in warmer areas. There are a large number of properties for sale, and you should obtain a pre-qualification letter in order to be aware of how much you can afford to spend.

Frequently asked questions

What are the loan conditions?

-       First priority mortgage in the property abroad

-       Maximum loan to value 70 %

-       Maximum duration, 30 years

-       Minimum loan amount for individuals, EUR 150,000

-       Minimum loan amount for companies, EUR 500,000

How do I apply for a pre-qualification letter?

You can apply for a pre-qualification letter even before finding the property you want to buy. A pre-qualification letter is a useful document stating the Bank’s willingness to lend you a certain sum of money based on certain assumptions. Once you have obtained a pre-qualification letter, you are in a position to act quickly when the right opportunity comes up. Pre-qualification letters are not mandatory for the process of finding your dream house; however, pre-qualification letters enable potential sellers to be confident in your ability to finance a purchase.

If you have already found the property you want to buy, we will issue a loan offer once your loan application has been approved, and then start the financing process.

Due to Spanish inheritance tax legislation, it may be an advantage to take up the loan at the same time as you purchase the property.   

Please contact us for an informal conversation or send a loan application.

Can I apply for refinancing based on my existing home?

Yes, it is possible to refinance loans from another bank in Norway or Spain. From a tax point of view and based on the current tax practice in Spain, please be aware that if the purpose of the loan is not considered to be acquisition of a mortgaged property, the debt secured by the mortgage will not be deductible from Spanish inheritance tax, gift tax and wealth tax.      
For an assessment of your individual situation, it is recommended that you contact an expert within this field.     

The processes will be different, but our advisers have long experience in finding good solutions.

Please contact us for an informal conversation or send a loan application.

Can I take up a loan through my company?

It is also possible to take up loans through your own company. If you want to mortgage a property owned by a Spanish or a Norwegian company, the bank will always require a personal guarantee from the main shareholder(s).

What is important to think about with respect to inheritance and generational change?

Inheritance and generational change are important subjects for many people.                     

When you buy and become the owner of a property in another country, you have to deal with inheritance rules and taxation in the country where the property is located.           
Therefore, it may be wise to seek advice from a lawyer early in the purchase process to clarify the implications and find the best solution for you and your family. Please note that the purpose of the loan (financing/refinancing) can have consequences on the applicable tax regime. Please consult a tax adviser for an assessment of your individual situation.        

A generational change does not necessarily involve high costs. If you intend to buy a property in Spain, it is important to plan the ownership structure.         

To get a total overview of Spanish inheritance tax legislation, we recommend that you contact a lawyer for further advice.

The loan process from A to Z

The process to purchase and perfect a security interest in Spain takes approximately four weeks after the pre-qualification letter/loan offer is in place, though this will vary. A dedicated adviser will help you throughout the entire process.

Here you will find the most important steps in the process:

- The loan application is submitted and processed, normally within three to four weeks.
- The pre-qualification letter/loan offer is sent to you when the application has been approved.
- When you have found the property you want to buy, you make an advance payment covering the appraisal.
- The appraisal company appraises the property (this takes six to eight business days).
- Our lawyers check the quality of the property and obtain the required documentation.
- The bank issues the loan agreement based on the lower of the purchase price and the appraised value.
- We arrange for opening an account for you in DNB Luxembourg.
-The date for transferring the deed on the property and perfecting the security is agreed.
- Settlement for the purchase and additional costs are transferred in cooperation with a lawyer.
- The loan amount is transferred to DNB Luxembourg’s client account with a lawyer.
- The bank's lawyer pays the loan amount in the meeting with the notary public.
- You receive copies of the purchase contract and the deed on the property, as well as the keys to the property

Meet us in Marbella

We have opened a representative office in Marbella. 
                                                                                   

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