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European Mortgage comparison Guide 2025: Complete analysis of Rates

This mortgage comparison guide incorporates insights from our two latest video analyses: “European Mortgage Rates at Lowest Levels in January 2025” and “Spanish Mortgage Rates for Non-Residents.” For detailed video explanations, we recommend watching both comprehensive analyses.

Data Source: All mortgage rates and financial data in this mortgage comparison are sourced from the European Central Bank’s official statistics. The figures presented are the latest available data as of January 2025, representing November 2024 measurements.

1. European Mortgage Rate comparison

    

   Comparing Mortgage Rates across Europe

   Our mortgage comparison reveals significant variations across European markets in 2025. Current data shows a remarkable spread in rates, from lows of 3.04% in Spain to highs of 3.94% in Ireland. This mortgage rate comparison helps investors identify the most advantageous markets for property investment.

   Quick Mortgage Rate comparison

   Country	Current Rate	Compared to EU Average (3.44%)
   Spain	3.04%	-0.40%
   France	3.17%	-0.27%
   Belgium	3.19%	-0.25%
   Italy	3.23%	-0.21%
   Portugal	3.29%	-0.15%
   Finland	3.31%	-0.13%
   Luxembourg	3.69%	+0.25%
   Netherlands	3.71%	+0.27%
   Ireland	3.94%	+0.50%

   Key factors in Mortgage comparison

   When comparing mortgages across European markets, consider these essential elements:

   • Interest Rate Types and Spreads
   • Down Payment Requirements
   • Lending Criteria for Non-Residents
   • Insurance Requirements
   • Tax Implications

   Key European Property Investment markets

   The mortgage markets across European countries show significant variation in rates and lending practices. The EU average currently stands at 3.44%, but individual countries demonstrate notable differences that reflect their local economic conditions, regulatory frameworks, and cultural approaches to property ownership.

   Mortgage Rates in Germany: Market analysis and trends

   The German mortgage market is characterized by its stability and conservative lending practices. With current rates at 3.59%, German lenders emphasize long-term security and robust risk assessment. The market is highly regulated, with a strong preference for fixed-rate mortgages that typically require down payments of 20-30%. A unique feature of the German market is the “Forward Darlehen” system, which allows borrowers to lock in rates up to five years in advance of their mortgage start date.

    

   German mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, as of November 2024, Spanish mortgage rates are cheaper by 0.55% than German mortgage rates. This is very good news for real estate buyers in Spain. In November 2024, German mortgage rates were sold at 3.59%.

    

   Mortgage Rates in France: current conditions and requirements

   French mortgage lending, offering competitive rates at 3.17%, combines strong borrower protections with structured application processes. This rate, notably below the European average, makes French mortgages particularly attractive for international investors. The French system is notable for its mandatory life insurance requirements and maximum debt ratio restrictions of 35%. First-time buyers can benefit from the “Prêt à taux zéro” program, which provides zero-interest loans under specific conditions.

    

   French mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, French mortgages are a little bit more expensive than Spanish mortgage rates in November 2024. They trade at 3.17%

    

   Mortgage Rates in the Netherlands: system overview and benefits

   The Dutch mortgage market, currently with rates at 3.71%, stands out for its innovative approach to lending and strong focus on sustainability. Despite rates being slightly above the European average, the system offers various mortgage types and relatively high mortgage-to-income ratios. A distinctive feature is the National Mortgage Guarantee scheme, which provides additional security for both lenders and borrowers.

    

   Dutch mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Spanish mortgage rates and Dutch mortgages are more expensive than Spanish mortgage rates by 0.67%. In November 2024, Dutch mortgage rates were sold at 3.71%.

    

   Mortgage Rates in Belgium: market features and opportunities

   Belgium’s mortgage market, with current rates at 3.19%, positions itself competitively within Europe. This rate, significantly below the EU average, combines with strong consumer protections and stable lending practices. The Belgian approach emphasizes income stability and typically requires a 20% down payment, while offering various tax advantages for property owners.

    

   Belgian mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Spanish mortgage rates and Belgian mortgage rates are close to each other in November 2024. As of November 2024, Belgian mortgage rates were issued at 3.19%, 0.15% higher than Spanish mortgages.

    

   Mortgage Rates in Ireland: market conditions and lending practices

   The Irish mortgage market currently shows rates of 3.94%, positioning it above the European average. Despite higher rates, Ireland offers robust first-time buyer programs and clear regulatory frameworks. Key features include strict Central Bank lending rules, comprehensive buyer protection measures, and increasing availability of long-term fixed rates.

    

   Irish mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Irish mortgages are much more expensive than Spanish mortgages. As you will surely know, the Irish real estate market rebounded strongly and is one of the hottest markets in Europe even with those higher rates. In November 2024, Irish mortgage rates were trading at 3.94%, 0.9% higher than Spanish mortgage rates.

    

   Mortgage Rates in Italy: southern European perspective

   Italy’s mortgage market presents competitive rates at 3.23%, making it an attractive option for property investors. The Italian system combines traditional lending practices with modern financial products, offering both fixed and variable rate options. The market is particularly appealing for vacation home buyers and those interested in historical property renovation.

    

   Italian mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Italian mortgages are much more expensive than Spanish mortgages. In November 2024, Italian mortgage rates were trading at 3.23%, 0.19% higher than Spanish mortgage rates.

    

   Mortgage Rates in Luxembourg: financial center insights

   Luxembourg’s mortgage market, with rates at 3.69%, reflects its position as a major financial center. Despite rates above the EU average, the market benefits from strong international banking presence and sophisticated financial products. The country’s high property values are offset by competitive lending terms and strong legal protections for buyers.

    

   Luxembourg mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Luxembourg mortgages are much more expensive than Spanish mortgages. In November 2024, Italian mortgage rates were trading at 3.69%, 0.65% higher than Spanish mortgage rates. As you know probably, the Luxembourg real estate market has a very high valuation and we could see this as banks being prudent or instructed by the European Central Bank to be prudent.

    

   Mortgage Rates in Portugal: Mediterranean market analysis

   Portugal offers attractive mortgage rates at 3.29%, positioning itself competitively within the southern European market. The Portuguese system provides particular advantages for non-resident buyers, with specific programs designed to attract international investment. The market combines affordable property prices with accessible financing options.

    

   Portuguese mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Portuguese mortgages are much more expensive than Spanish mortgages. In November 2024, Portuguese mortgage rates were trading at 3.29%, 0.25% higher than Spanish mortgage rates. The Portuguese real estate market had a nice run too and we could see some caution from Portuguese banks.

    

   Mortgage Rates in Finland: Nordic market perspective

   Finland’s mortgage market, with rates at 3.31%, demonstrates the stability characteristic of Nordic financial systems. The Finnish approach emphasizes transparency and efficiency in lending processes, with strong digital integration and streamlined application procedures. The market offers particular advantages for energy-efficient properties and new constructions.

    

   Finnish mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Spanish mortgage rates since March 2022 are cheaper than mortgages in Finland, as of November 2024, they are cheaper by 0.27%. This is very good news for real estate buyers in Spain. In November 2024, Finnish mortgage rates were sold at 3.31%.

    

   Want to learn more about European Mortgage Rates?

   Watch our comprehensive video analysis “European Mortgage Rates at Lowest Levels in January 2025” to discover:

   • Detailed monthly changes in rates across all European countries

   

   • Five-year historical trends and patterns
   • Impact of inflation on current rates

   

   • Financing conditions across different regions

   

   • Expert predictions for the coming months

    
   Would you like to watch this video in your language? Click at the bottom right of the video on “cc” to get subtitles in your language.
    
   

    

   #SpanishMortgage #PropertyInSpain #NonResidentMortgage #SpanishProperty #InvestInSpain #SpanishRealEstate #MortgageAdvice #ForeignBuyer

    

2. Professional support framework

    

   Success in the Spanish mortgage market often depends on accessing professional support services. This includes legal assistance during the property purchase process, financial advisors for mortgage comparison and tax planning, and property services professionals for market analysis and valuation expertise.

    

Conclusion

The European mortgage market offers diverse opportunities for property investors, with Spain emerging as a particularly attractive option in 2025. Our video analyses demonstrate that while each country presents unique characteristics and requirements, Spain’s combination of competitive rates, stable banking sector, and strong property market fundamentals makes it especially appealing for foreign buyers.

For more detailed information and regular updates on European mortgage rates and Spanish property investment opportunities, we recommend subscribing to our video channel. Our comprehensive analyses are updated monthly with the latest market data and expert insights.

Mortgage comparison in Europe FAQ

Easy downloadables charts on mortgage rates evolution in Europe

Bar chart comparing data for various mortgage rates for different European countries, with Ireland highest at 3.94. Includes Belgium, Netherlands, Finland, Germany, Italy, Portugal, Luxembourg, the EU logo “HTBIS,” and notably showcases Spanish mortgage rates alongside Spain’s performance.

The post Mortgage rates comparison in Europe appeared first on How to buy in Spain.

Mortgage rates for non-residents: Spain’s position in the European landscape

Here is our update of January 2025 with the last available data (November 2024) on Spanish mortgage rates for non-residents from the European Central Bank

One question we get from our customers nearly daily is: How expensive are the mortgage rates in Spain vs other European countries?

So, we were due to do some work on that and here is the result. At the same time, we took the opportunity to increase our databases, and this article will be updated later. Please note that all the charts are interactive and, whenever we update our database, the charts will be updated.

Thanks to our network of local partners, we get the best mortgage rates in Spain if you want to finance your home in Spain. Take 30 seconds to fill this quick form to get the best Spanish mortgage rates as a non-resident.

1. Mortgage rates in Spain for non-residents: our 2 minutes video

   Would you like to watch this video in your language? Click at the bottom right of the video on “cc” to get subtitles in your language.
   

    

2. Navigating the Mortgage process as a non-resident in Spain

   While many international buyers prefer to purchase their Spanish second home outright with cash, this approach might not always be the most strategic. Even if you have the means for an all-cash transaction, considering a mortgage could unlock a suite of financial benefits. From diversifying your investments and increasing liquidity to optimizing tax efficiencies, the advantages are compelling. Intrigued? We invite you to journey with us through the upcoming sections, where we’ll unveil the nuanced benefits of leveraging a mortgage for your property in Spain—a decision that could redefine your financial strategy.

   Securing a mortgage in Spain as a non-resident is a feasible endeavour, though it does come with its unique set of challenges and considerations. Given that the majority of your assets are likely situated outside of Spain, Spanish banks will meticulously evaluate both your personal financial profile and the property in question to mitigate their risk exposure. Generally speaking, the terms offered to non-residents may be more conservative compared to those available to residents. This often translates to less favourable interest rates, stricter borrowing criteria, and a reduced loan-to-value ratio, meaning you might need to provide a larger down payment. Additionally, the process might involve more comprehensive documentation and a longer evaluation period to thoroughly assess the viability of extending credit under these circumstances. Understanding these nuances and preparing accordingly can smooth the path to acquiring your Spanish property.

   
   
   

3. Comparing Spanish Mortgage rates with European averages

    

   Spanish vs. European Real Estate financing

   Thanks to the detailed database of the European Central Bank that we could import, we could run a thorough analysis of mortgage conditions for all the European countries vs Spain. Before jumping on detailed statistics on different mortgage solutions we looked at general conditions for mortgage rates both in Europe and in Spain.
   All Mortgages issued in Spain in November 2024 had an average interest rate of 3.04%  (vs 3.1% in January 2023) while all mortgages issued in Europe had an average interest rate of  3.44%  for the same period (vs 3.19% in Spain in January 2023).

   The chart below clearly demonstrates a strong correlation between Spanish mortgage rates and their European counterparts. Both datasets, meticulously compiled by the European Central Bank, serve to monitor financial trends across the region. Historically, from November 2014 to April 2022, Spanish mortgage rates were consistently higher than the European average, marking a more expensive borrowing climate within Spain. During this timeframe, the average Spanish mortgage rate stood at 2.02%, in contrast to the slightly lower European rate of 1.87%, indicating a notable 0.15% disparity that disadvantaged both the Spanish property market and prospective homeowners.

   Spanish mortgage rates are cheaper than European ones

   A new trend started in 2022

   However, the trend reversed post-April 2022, as Spanish mortgage rates began to align with or dip below the European average. As of November 2024, the most recent data point at the time of this analysis, the average mortgage rate in Spain had settled at 3.04%, marginally below the European average of 3.44%.

   This shift represents a significant 0.40% advantage, benefiting both the Spanish real estate market and its investors: Spaniards and foreigners, and reflects a notable improvement in the affordability and attractiveness of Spanish mortgages relative to the broader European landscape.

   Now that we analyzed all the mortgages issued in both Europe and Spain, it is time to compare rates for different mortgage solutions. As you know mortgage rates are separated in two big categories:

   • fixed rates mortgages, mostly mortgages that will keep the same rate over the full mortgage length, usually between 10 and 25 years,
   • variable rates mortgages, mortgages that will change rates over the life of the mortgage (monthly, yearly, or every five years)

   In the following analysis, we will delve further into the nuances of four distinct mortgage categories: variable-rate mortgages, fixed-rate mortgages with terms of 1-5 years, those spanning 5-10 years, and fixed-rate mortgages with a term of 10 years. Notably, variable-rate and 10-year fixed-rate mortgages stand out as the most popular choices among individuals financing their home purchases, both across Europe and specifically within Spain. This comparison aims to illuminate the characteristics and trends that define each category, providing a comprehensive overview of the Spanish mortgage landscape.

   Here are all the evolutions and a quick analysis for each:

   Variable Mortgage rates: Spain vs Europe showdown

   As you can see on the chart, Spanish mortgage rates since April 2022 were nearly always cheaper than mortgages in Europe, as of November 2024, they are cheaper by 0.40%.

    

   1-5 years fixed Mortgage rates face-off: Spain vs Europe

    

   As you can see on the chart, Spanish mortgage rates with fixed rates between 1 and 5 years are one of the only Spanish mortgage rates for which you will pay more than in other European countries, on average, as of November 2024, you will pay 0.21% more.

    

   5-10 years fixed Mortgage Rates: Spain vs Europe head-to-head

   As you can see on the chart, fixed Spanish mortgage rates (5 to 10 years) were nearly always more expensive in Spain than in other European countries. Interestingly, as of November 2024, Spanish mortgage rates trade close to the European average, i.e. no more premium as in the past.

    

   10-Year fixed Mortgage rates in Spain versus Europe

   As you can see on the chart, Spanish mortgage rates since March 2022 are cheaper than mortgages in other European countries, as of November 2024, they are cheaper by 0.36%. This is very good news for real estate buyers in Spain.

   At the end of this article, we provide a precise comparison between mortgages issued in different European countries and Spain, have a look at where your home country is!

   Read more on the subject: What are the best Spanish mortgage rates?

4. Key factors behind the advantageous Spanish Mortgage rates

   Thanks to our detailed update, now you know that the Spanish mortgage market is experiencing a confluence of positive factors that set it apart from other European counterparts:

   • Spanish property values remain attractively priced when juxtaposed with other European real estate markets, presenting a compelling value proposition and a lower risk for lending banks, just contrary to what we had in 2008,
   • The Spanish economy exhibits resilience and robustness, outpacing the broader European economic performance, which instils confidence in both domestic and international investors,
   • The impact of energy price fluctuations has been mitigated effectively in Spain since the escalation of geopolitical tensions in Ukraine, contributing to a more stable cost of living and operating environment,
   • Spain’s inflation has consistently been lower than the European average, preserving purchasing power and contributing to the overall economic stability,
   • The Spanish real estate sector is characterized by its prudence and lack of speculative excess, evident in the modest percentage of transactions involving mortgages (66%) and the conservative loan-to-value ratio averaging 60%. This reflects a healthy level of leverage and risk appetite in the market.
   • The strength of the general economy in Spain suggests that Spanish banks are in a sound financial position, enabling them to offer attractive financing options without resorting to aggressive lending practices. This financial stability is likely to support continued favourable mortgage rates.

   These elements collectively create a conducive environment for the advantageous spread in Spanish mortgage rates, underscoring the market’s resilience and appeal to a broad spectrum of investors. Additionally, the prudent regulatory framework and proactive fiscal policies may further bolster the market’s attractiveness, potentially leading to sustained growth and stability in the Spanish real estate sector.

    

   

   Why Spanish mortgage rates are less expensive than in other European countries?

5. What are the advantages of obtaining a Mortgage in Spain as a non-resident?

    

   Increase the return on your Spanish property investment

   The main advantage of buying a property in Spain, is that current real estate levels are not crazy if you compare those to other European countries.
   Read more on the subject: What return will you make on your Spanish property?

   Even with current mortgage rates, getting a mortgage is easier than getting a loan for something else as a person as the bank has the property as collateral. So, while we always encourage our customers to manage risks and don’t overleverage, getting a mortgage before buying a property is in our mind a wise way to diversify your financial assets.
   Last but not least, but depending on your home country, real estate assets could be less taxed than other financial assets.

   Diversify your investments

   By taking a mortgage, you can decrease your risks by keeping some funds for other investments.

   Potential tax benefits and how to maximize them

   Buying a property with a mortgage can give you some real tax benefits if you put your property on the rental market afterwards as a “Buy to let” or an investment property. Ask our tax advisors for more on that.

   Advantages of Spanish mortgage rates for UK residents

   In the mortgage landscape, UK banks are known to promote variable-rate mortgages, nudging customers towards options that fluctuate with the market, despite the inherent uncertainty in future repayments. Meanwhile, Spanish banks are more accommodating of fixed-rate mortgages, offering borrowers the chance to lock in a stable and predictable payment schedule throughout the loan term, contrasting with the UK’s bank-driven preference for variable rates.

   Spanish mortgage rates for US residents

   In the US mortgage market, fixed-rate mortgages are predominant, offering long-term stability with terms commonly set at 30 years, allowing homeowners to lock in rates for the duration of their loan. This contrasts with the Spanish market, where, despite a growing preference for fixed-rate options, mortgages typically have shorter terms and the market historically leaned more towards variable rates, influenced by the Euribor. Additionally, the US market is characterized by its diversity in loan products and a more developed secondary market for mortgages, which enhances liquidity and flexibility in terms and conditions, unlike Spain, where the market is more traditional and less varied in its offerings.

   

   Benefits for a non-resident of financing his property in Spain with a mortgage.

6. How to get the best mortgage rate as a non-resident in Spain?

    

   Have the best customer profile for the Spanish bank

   Here are some insights into what constitutes an attractive customer profile for securing a mortgage:

   • Employment and stability: Ideal candidates are employed with a stable and substantial income.
   • Creditworthiness: A favourable credit history with minimal debts relative to income is crucial.
   • Debt management: A healthy debt-to-income ratio below 35. This means that monthly net income would be at least three times greater than debt repayments.
   • Property value: 1/ The chosen property should hold strong resale potential. 2/It should be priced appropriately within the current market. 3/It should be in a location with consistent demand.
   • Geographic consideration: Applicants from OECD countries are often preferred due to stringent anti-money laundering regulations across Europe. Being an EU resident simplifies the process further.
   • Maximum loan amounts for non-residents: Spanish banks would like to keep that under control

    

   Don’t take a too big mortgage compared to the property value

   As a non-resident, you’re eligible to secure a mortgage for your second home or investment property. Given that your assets are not located in Spain, banks will require guarantees and generally cap the loan-to-value (LTV) ratio at 70%. The LTV ratio represents the portion of the property’s pre-tax value that can be financed through a mortgage. This percentage serves as a general guideline. Feel free to request a complimentary consultation from our mortgage broker, who is well-versed in the process and familiar with Spanish banks that are favourable towards foreign clients. The lower this ratio is, the lower the risk for the bank and the better rate for your mortgage.

   

   How to get the best rates as a non-resident.

7. Useful considerations for your Spanish mortgage as a non-resident

    

   Processing time for Mortgage applications

   On average, mortgages are processed quickly but keep in mind, that you need to prepare a full file so the bank can establish your credit profile. Our partner will work on that with you. Don’t worry.

   Higher interest rates and reduced loan amounts for non-residents

   In general, foreigners will get slightly less good conditions than Spaniards for their mortgages. This is normal as foreigners don’t have all their financial assets and incomes based in Spain. With a good credit profile and a reasonable loan to value, our customers get nice quotes.

   NIE number for non-residents

   Acquiring an NIE number is a fundamental step for non-residents looking to navigate the property and mortgage landscape in Spain. This identifier serves as your tax identification number. It is essential for a variety of legal and financial transactions, including the purchase of property and the application for a mortgage. Fortunately, obtaining an NIE is a straightforward process. Your legal representative can handle on your behalf, should time constraints be an issue. For a detailed guide on acquiring your NIE and its importance, we invite you to explore our comprehensive article: Your Spanish NIE number, and how to get it..

   

   Useful considerations for a non-resident to get a Spanish mortgage

8. Comparing Mortgage rates in Spain vs. selected European countries

   Before checking the evolutions of the mortgage conditions between Spain and a few countries, let’s have a look at what is the current situation as of November 2024. Here is the evolution of the different European markets sorted alphabetically, as a reminder, Spanish mortgage rates and European mortgage rates were at 3.04% and 3.44% respectively as of the end of November 2024.

   European mortgage rates November 2024 leaderboard

    

   • Belgian mortgage rates are issued with a 3.19% rate on average in November 2024
   • Dutch mortgage rates are issued with a 3.71% rate on average in November 2024
   • Finnish mortgage rates are issued with a 3.31% rate on average in November 2024
   • French mortgage rates are issued with a 3.17% rate on average in November 2024
   • German mortgage rates are issued with a 3.59% rate on average in November 2024
   • Irish mortgage rates are issued with a 3.94% rate on average in November 2024
   • Italian mortgage rates are issued with a 3.69% rate on average in November 2024
   • Luxembourg’s mortgage rates are issued with a 3.29% rate on average in November 2024
   • Portuguese mortgage rates are issued with a 3.04% rate on average in November 2024

   Here is the same information presented in a column chart:

    

   Belgian mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Spanish mortgage rates and Belgian mortgage rates are close to each other in November 2024. As of November 2024, Belgian mortgage rates were issued at 3.19%, 0.15% higher than Spanish mortgages.

    

   Dutch mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Spanish mortgage rates and Dutch mortgages are more expensive than Spanish mortgage rates by 0.67%. In November 2024, Dutch mortgage rates were sold at 3.71%.

    

   Finnish mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Spanish mortgage rates since March 2022 are cheaper than mortgages in Finland, as of November 2024, they are cheaper by 0.27%. This is very good news for real estate buyers in Spain. In November 2024, Finnish mortgage rates were sold at 3.31%.

    

   French mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, French mortgages are little bit more expensive than Spanish mortgage rates in November 2024. They trade at 3.17%

    

   German mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, as of November 2024, Spanish mortgage rates are cheaper by 0.55% than German mortgage rates. This is very good news for real estate buyers in Spain. In November 2024, German mortgage rates were sold at 3.59%.

    

   Irish mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Irish mortgages are much more expensive than Spanish mortgages. As you will surely know, the Irish real estate market rebounded strongly and is one of the hottest markets in Europe even with those higher rates. In November 2024, Irish mortgage rates were trading at 3.94%, 0.9% higher than Spanish mortgage rates.

    

   Italian mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Italian mortgages are much more expensive than Spanish mortgages. In November 2024, Italian mortgage rates were trading at 3.23%, 0.19% higher than Spanish mortgage rates.

    

   Luxembourg mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Luxembourg mortgages are much more expensive than Spanish mortgages. In November 2024, Italian mortgage rates were trading at 3.69%, 0.65% higher than Spanish mortgage rates. As you know probably, the Luxembourg real estate market has a very high valuation and we could see this as banks being prudent or instructed by the European Central Bank to be prudent.

    

   Portuguese mortgage rates vs. Spanish mortgage rates evolution over the last 20 years

   As you can see on the chart, Portuguese mortgages are much more expensive than Spanish mortgages. In November 2024, Portuguese mortgage rates were trading at 3.29%, 0.25% higher than Spanish mortgage rates. The Portuguese real estate market had a nice run too and we could see some caution from Portuguese banks.

    

9. Further readings

    

   • Read more on current financing conditions in Spain with our detailed article: What are the best Spanish mortgage rates?
   • Hesitating between fixed or variable rates on your mortgage (in Spain or elsewhere) have a look at our detailed insights: How do I choose between fixed and variable rates for a mortgage?
   • Last but not least don’t miss our detailed ultimate guide to your Spanish mortgage
   • If you need a mortgage pricer for your Spanish mortgage, check our article for more.

    

Looking for a mortgage or a local expert in Alicante, Malaga, Valencia, Madrid, Barcelona,…? Ask us directly!

Are Spanish mortgage rates more expensive? FAQ

Downloadable Charts

The post Mortgage rates in Spain for non residents: Jan 2025 update appeared first on How to buy in Spain.

Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

What are the best Spanish mortgage rates?

Here is our December 2024 update with the latest data available

Leveraging our expansive network of local partners, we secure Spain’s most favourable mortgage rates for those looking to finance their homes. Throughout much of 2022, we observed significant discounts on mortgage rates as inflation surged while long-term rates remained subdued, thanks to the European Central Bank’s (ECB) efforts. Now, zoom forward to end-2024, inflation is more controlled (2.4% as of November 2024 – back to the low of the range over the last 3 years) and it looks like economies are suffering from the restricted monetary policy of the ECB. In this context, some market experts expect the central bank to lower rates. We can already see this impacting mortgage conditions and long-term rates.

To stay informed about the latest Spanish mortgage rate trends, it’s crucial to consult real-time data from the most recent mortgages issued in Spain. This insight allows you to understand the most competitive rates currently available. Foreigners must note that rates may vary since their assets are primarily overseas.

We’ve built the largest database to monitor fluctuations in this sector, enabling us to generate dynamic, engaging charts. The “Instituto Nacional de Estadísticas” (INE) has recently published the mortgage statistics for Spain as of September 2024, providing a clear view of the current market rates.

Thanks to our network of local partners, we get the best mortgage rates in Spain if you want to finance your home in Spain. Take 30 seconds to complete this quick form to get the best Spanish mortgage rates.

1. Spanish mortgage rates: our 2 minutes video

   Would you like to watch this video in your language? Click at the bottom right of the video on “cc” to get subtitles in your language.
   

    

2. What are the current mortgage rates in Spain?

    

   Current market conditions

   • The average mortgage has an interest rate of 3.14% (vs 3.32% end of December 2023)
   • The lowest rate ever was 2.44% reached in September 2020.
   • The average rate for variable-rate mortgages is 2.92% (vs 3.07% end of December 2023)
   • The average rate for fixed-rate mortgages is 3.3% (vs 3.54% end of December 2023)

    

   Check the evolution of the mortgage rates (average, fixed and variable ) over the last years on our interactive chart (browse with the mouse to check data)

    

   What are the best mortgage rates for our customers?

   As of September 2024, our partner can get very good conditions for mortgages for our non-resident buyers:

   • Fixed rates: from 2.85%
   • Mixed solution: from 2.50% fixed for 5 years, after Euribor + 0.75%
   • Variable rates: from 2.50% fixed for 1 year, after Euribor + 0.75%

   And of course, they don’t stop with foreigners, our partner gets very competitive mortgage rates for Spaniards:

   • Fixed rates: from 2.52% (if taking other products like insurance from the bank for instance,…)
   • Mixed solution: from 1.50% fixed for 5 years, after Euribor + 0.60%
   • Variable rates: from 1.35% fixed for 1 year, after Euribor + 0.25%

   So, don’t hesitate to fill out this quick form if you want a free quote from our partner. They are specialized in working with foreigners looking for a mortgage in Spain. Please note that to get the best rates, banks add some conditions as in your home country.

   Essential information on Spanish Mortgages for non-residents

   As a non-resident, you can take a mortgage to finance your second home or your investment. Of course, as your assets won’t be based in Spain, the bank will need warranties and won’t allow a loan to value more than 70% in general. The Loan to value is the amount of mortgage you can get divided by the value of your property before tax, but this % is only for good inquiry. Don’t hesitate to ask for a free quote from our mortgage broker, he knows perfectly how it works and which Spanish banks love foreigners.

   Don’t miss our new detailed article on that subject: Mortgage rates in Spain for non-residents: our detailed guide.

   

   Get the best mortgage rate in Spain

3. Calculate the cost of your Spanish mortgage

   Check our ultimate Spanish mortgage calculator.

   To help you out, we have created an easy-to-use table of the monthly repayments depending on the amount you want to take for a mortgage. If you want to go deeper into details, use our calculator to fine-tune your mortgage to your situation and you will find out what would be your monthly payments, mortgage schedule,…

    

   

   We developed a detailed mortgage calculator: Payment schedule, monthly payments,…

   What is the cost of a €100,000 mortgage over 10 years?

   If you want to go into the details, here is a calculation example we did:

   As you will see if you take a mortgage of €100,000 for 10 years with a rate of 3.5%, your monthly payment to reimburse your mortgage will be €989.

   Thanks to our Spanish mortgage rate calculator, you can change any number and calculate what would be your situation.

    

   Summary table of your monthly reimbursements for a €100.000 Mortgage

   €100,000	10 Year	12 Year	14 Year	16 Year	18 Year	20 Year
   Rates	120 months	144 months	168 months	192 months	216 months	240 months
   1.50%	-€898	-€759	-€660	-€586	-€529	-€483
   2.00%	-€920	-€782	-€683	-€609	-€552	-€506
   2.50%	-€943	-€805	-€706	-€632	-€575	-€530
   3.00%	-€966	-€828	-€730	-€656	-€600	-€555
   3.50%	-€989	-€851	-€754	-€681	-€625	-€580
   4.00%	-€1,012	-€876	-€778	-€706	-€650	-€606

    

4. Buy to let in Spain?

   If you are about to invest in Spain, it is always interesting to compare the financing conditions with your returns prospects, check our last article on that subject:

   What return will you make on your Spanish Property investment in 2023? If you see your property investment in Spain as an investment, adding some financing (without being crazy) will increase your return and decrease your costs.

    

5. Should I take a mortgage with fixed or variable rates?

   Fixed-rate and variable-rate mortgages are the two main categories of mortgages you can pick. Of course, there are many other possibilities between the two.

    

   Why would you take a fixed-rate mortgage?

   A fixed-rate mortgage has the advantage that whatever the market conditions will do in the future, it will remain the same. To get that advantage, you will on average pay a higher rate than on a variable-rate mortgage, for instance, as of September 2024, mortgages with variable rates were issued at rates of 2.92% while those with fixed rates were issued with 3.30 % for an average length of 24 years.

   Why would you take a mortgage with a variable rate?

   It could be because it is less expensive than a mortgage with fixed rates (monthly instalments) because you don’t see inflation or rates going higher or because you are comfortable financially and can face higher rates in the future. Another reason variable rates cost less than fixed rates is that for the banks issuing them, it matches their sources of funds (savings accounts) and they take less risks by issuing them rather than fixed rates mortgages.
   To sum up, if you want safety, take a fixed-rate mortgage. If you see inflation spiking or interest rates going higher (in general due to a strong economy) you could as well go for a fixed-rate mortgage. Of course, the longer your mortgage is the higher your risk will be.
   Don’t hesitate to ask your Spanish mortgage broker for pricing with both and compare both offers.

    

   Inflation update since the start of 2023

   After the big inflation spike of 2022 around the world and in Spain, inflation in Spain is moderating finally to +2.2% as of August 2024. We note that since 2022, the trend changed clearly and the majority of mortgages are issued with fixed rates. We kept telling you in 2022, to lock in those crazy long-term rates levels… remember our chart:

   

   Maybe some people see a real risk of inflation staying high, which in turn should increase the variable rates. Since June 2023, we still see the fixed rates as leading the mortgage initiations but we are going back towards a 50/50 split between variable and fixed rates. As of mid-2024, with long-term rates decreasing and with inflation decreasing, we see that fixed rates are back on the top of the list. Check our interactive chart on that.

   Check the evolution of the percentage of mortgages with fixed and variable rates with the inflation rate

   We wrote a completely new article on that subject: “Fixed or variable mortgage for my Spanish home?“

6. How do you secure the best mortgage rates in Spain?

   You are about to buy a nice second home in Spain. Do you want to know how to get the best mortgage rates on your Spanish property? Even as a foreigner?
   Check our detailed paper on this subject and follow the link or listen to our 2 minutes video on how to apply for your mortgage up to the end and get all our tips to get the best rates:
   

   You have to ask yourself this question: What is the ideal mortgage customer for a bank? The bank will take a risk, the risk of not being repaid and in this case, the bank will need to take legal action to control your property and will sell it afterwards on the market. We saw what happened after the financial crisis of 2008: thousands of properties finished in the hands of the banks as owners couldn’t pay their mortgages.

   The ideal mortgage customer for a Spanish bank

   • has a good professional profile: he is employed and has a stable nice income stream,
   • has a good credit report, he does not have too much debt vs. his income,
   • can afford to have debts: his debt to income ratio is under 35 %, which means that his monthly net income is 3 times bigger than his monthly debt repayments,
   • the property has a good resale value:
     1. the property price is correct vs. the market
     2. there is demand in the market for such a property
   • is coming from OECD countries, as you know, with anti-laundering laws that came into effect all over Europe, it is challenging for banks to give a loan to residents of certain countries. Of course, if you are a resident of the European Union, it will be the easiest.

    

   

   How to get the best rates as a non-resident?

    

   Get a free mortgage quote

   At howtobuyinSpain.com, you are in good hands, we work with a mortgage broker who asks for the best mortgage prices for all the Spanish banks. Depending on your profile, certain banks will be more aggressive and others won’t be. Our mortgage partner knows that and they will go to the best bank or will ask for quotes from many Spanish banks to get you the best quote. They work with all the biggest Spanish banks: BBVA, Bankia, Santander,… Get a free mortgage quote from our partner.

7. Spanish mortgages Rates: Market Insights and Trends

    

   381,560 mortgages issued in Spain over 2023

   2022 was a record year for mortgage rates in Spain: 464,000 credits were issued. Even stronger than 2021 which was already strong. So, in 2023, with the rise of interest rates, the number of mortgages decreased by 18%, while at the same time, the number of transactions decreased by 19% (from 734,000 transactions in 2022 to 596,000 transactions in 2023).

   A healthy market: Only 64% of properties are bought with a mortgage (vs 63% in 2022). In our opinion, the market is not over-leveraged. Have a quick look at the table for statistics since 2015. Yes, we are far from the high-leverage situation we had in 2007.

    

   Historical evolution of Spanish mortgage rates & useful information

   • The average mortgage duration is 24 years
   • Only 6% of issued mortgages in Spain are bigger than 80% of the property value.
   • 46% have variable interest rates (vs 35% in December 2022)
   • 54% have fixed interest rates (vs 65% in December 2022)
   • The average amount issued per mortgage is €140,451.

    

   Check the evolution of the average amount issued per mortgage over the last year in Spain in our interactive chart

   • How much leverage is given by banks? What is the average Loan to Value in Spain? (if your property value is 100% how big will your mortgage be?) The quick answer is 63%.
   • 24,927 mortgages were issued -17% vs last year.
   • 3.5 € Bn of mortgages issued for housing in December 2023, -19% vs last year.

   Last but not least, it is always interesting to know the long-term rates and the Euribor, as those are the rates at which Spanish banks get financed. As you can see both short-term rates and long-term rates are exploding since the start of 2022.

    

8. Resources on Spanish mortgage rates

    

   Discover the best new build projects in Spain

   New build for sale in Spain € 320,000

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   New build for sale in Spain € 529,000

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   New build for sale in Spain € 319,000

   2 beds 2 baths 87 m²

    

   Check out our latest articles on Spanish mortgage rates

   • Spanish mortgages for non-residents: our detailed guide.
   • Your definitive guide to your Spanish mortgage
   • Our ultimate mortgage calculator
   • Is it easy to get a Spanish mortgage as a foreigner in a post-COVID-19 world?
   • How do I choose between fixed and variable rates for a mortgage?

   All our interactive charts of this article are available in a downloadable format

    

Loan to value given on mortgages in Spain

Spanish mortgages with the best mortgage rate in Spain and loan value higher than 80%.

Current financing rates for Spanish banks

Average Spanish Mortgage Sizes in 2024

Spanish mortgage rates for non-residents vs properties sold in Spain for each year

Spanish mortgage rates: comparison between variable and fixed rates

Best Spanish mortgage rates in March 2024

Average Spanish mortgage length in years.

FAQ Spanish mortgage rates

Here are the statistics for earlier years:

1. 1. • • The Spanish mortgage rates situation for December 2021

          1. • Average mortgage has an interest rate of 2.53%
             • The lowest rate ever was 2.44% reached in Nov 2020!
             • The average mortgage duration is 24 years
             • 32% have variable interest rates
             • 68% have fixed interest rates
             • The average rate for variable rate mortgages is 2.08%,
             • The average rate for fixed-rate mortgages is 2.8%,
             • The average amount issued per mortgage is €145,500: an increase of 1.9% vs last year.
             • 32,905 mortgages were issued +23% vs last year.
             • 4,8 € Bn of mortgages issued for housing in December 2021, +32% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):

          1. 1. • Aragon, +33% to 1.159 mortgages
                • Extremadura, +29% to 683 mortgages

          The top region in terms of amounts of mortgages issued (Annual)

          1. • Balears, 211m€, +116%
             • La Rioja, 19m€, +77%
             • Aragon, 169m€, +70%

The Spanish mortgage rates situation for October 2021

1. 1. • • 1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.48%
                                  • The lowest rate ever was 2.44% reached in Nov 2020!
                                  • The average mortgage duration is 24 years
                                  • 33% have variable interest rates
                                  • 67% have fixed interest rates
                                  • The average rate for variable rate mortgages is 2.11%,
                                  • The average rate for fixed-rate mortgages is 2.7%,
                                  • The average amount issued per mortgage is €137,900: an increase of 1.9% vs last year.
                                  • 33,105 mortgages were issued +67% vs last year.
                                  • 4,6 € Bn of mortgages issued for housing in August 2021, +70% vs last year.

The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):

1. 1. • • 1. 1. 1. 1. 1. 1. 1. 1. • Navarra, +77% to 510 mortgages
                                  • Murcia, +7% to 1,099 mortgages
                                  • Andalusia, +2% to 6,589 mortgages

The top region in terms of amounts of mortgages issued (Annual)

1. • • • • • • • • • • • • Madrid, 1.2bn€, +89%
                         • Andalusia, 793m€, +89%
                         • Catalonia, 863m€, +87%

     • The Spanish mortgage rates situation for February 2021

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.49%
                               • The lowest rate ever was 2.44% reached in Nov 2020!
                               • The average mortgage duration is 24 years
                               • 47.3% have variable interest rates
                               • 52.7% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.16%,
                               • The average rate for fixed-rate mortgages is 2.88%,
                               • The average amount issued per mortgage is €131,380: an decrease of 13.8% vs last year.
                               • 31,647 mortgages were issued -23.1% vs last year.
                               • 4,1 € Bn of mortgages issued for housing in February 2021, -29.9% vs last year.

        

       The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):

       1. 1. 1. 1. 1. 1. 1. 1. • Murcia, +45% to 1007 mortgages
                               • La Rioja, +40% to 215 mortgages
                               • Valencian Community, +24% to 3600 mortgages

       The top region in terms of amounts of mortgages issued (Annual)

       1. 1. 1. 1. 1. 1. 1. 1. • Navarra, 54m€, +19%
                               • La Rioja, 18m€, +16%
                               • Gallicia, 116m€, +13%

     • The Spanish mortgage rates situation for January 2021

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.47%
                               • The lowest rate ever was 2.44% reached in Nov 2020!
                               • The average mortgage duration is 24 years
                               • 48.8% have variable interest rates
                               • 51.2% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.17%,
                               • The average rate for fixed-rate mortgages is 2.81%,
                               • The average amount issued per mortgage is €129,003: an increase of 13.5% vs last year.
                               • 27,518 mortgages were issued -31.6% vs last year.
                               • 3,5 € Bn of mortgages issued for housing in January 2021, -22.4% vs last year.

        

       The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):

       1. 1. 1. 1. 1. 1. 1. 1. • Navarra, +63% to 458 mortgages
                               • Balears, +27% to 643 mortgages
                               • La Rioja, +24.4% to 153 mortgages

       The top region in terms of amounts of mortgages issued (Annual)

       1. 1. 1. 1. 1. 1. 1. 1. • Cantabria, 40m€, +0%
                               • Catalonia, 758m€, -7%
                               • Castilla y Leon, 126m€, -9%

     • The Spanish mortgage rates situation for December 2020

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.53%
                               • The lowest rate ever was 2.44% reached in Nov 2020!
                               • The average mortgage duration is 24 years
                               • 51.6% have variable interest rates
                               • 48.4% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.20%,
                               • The average rate for fixed-rate mortgages is 2.97%,
                               • The average amount issued per mortgage is €135,658: an increase of 9.2% vs last year.
                               • 26,128 mortgages were issued -14.8% vs last year.
                               • 3,5 € Bn of mortgages issued for housing in December 2020, -7% vs last year.

        

       The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):

       1. 1. 1. 1. 1. 1. 1. 1. • Cantabria, +9.3% to 354 mortgages
                               • Extremadura, +4.8% to 551 mortgages
                               • Aragon, +0.2% to 862 mortgages

       The top region in terms of amounts of mortgages issued (Annual)

       1. 1. 1. 1. 1. 1. 1. 1. • Aragon, 111m€, +62%
                               • Castilla y Leon, 118m€, + 38%
                               • Galicia, 123m€, +34%

     • The Spanish mortgage rates situation for November 2020

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.45%
                               • The lowest rate ever was 2.44% reached in Nov 2020!
                               • The average mortgage duration is 24 years
                               • 52.6% have variable interest rates
                               • 47.4% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.05%,
                               • The average rate for fixed-rate mortgages is 2.86%,
                               • The average amount issued per mortgage is €136,676: an increase of 5.5% vs last year.
                               • 28,756 mortgages were issued +2.4% vs last year.
                               • 3,9 € Bn of mortgages issued for housing inNovember 2020, +3% vs last year.

        

       The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):

       1. 1. 1. 1. 1. 1. 1. 1. • Pais Vasco, +19% to 1729 mortgages
                               • Cantabria, +16% to 324 mortgages
                               • Catalonia, +15% to 4711 mortgages

       The top region in terms of amounts of mortgages issued (Annual)

       1. 1. 1. 1. 1. 1. 1. 1. • Castilla – La Mancha, 115m€, +32%
                               • Aragon, 97m€, +31%
                               • Galicia, 104m€, +21%

     • The Spanish mortgage rates situation for October 2020

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.47%
                               • The lowest rate ever was 2.44% reached in Nov 2020!
                               • The average mortgage duration is 25 years
                               • 51.1% have variable interest rates
                               • 48.9% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.19%,
                               • The average rate for fixed-rate mortgages is 2.85%,
                               • The average amount issued per mortgage is €134,900: an increase of 4.6% vs last year.
                               • 28,248 mortgages were issued -5.9% vs last year.
                               • 3,8 € Bn of mortgages issued for housing in October 2020, -1.6% vs last year.

        

       The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):

       1. 1. 1. 1. 1. 1. 1. 1. • Castilla y Leon, +28% to 1226 mortgages
                               • La Rioja, +26% to 179 mortgages
                               • Navarra, +21% to 332 mortgages

       The top region in terms of amounts of mortgages issued (Annual)

       1. 1. 1. 1. 1. 1. 1. 1. • Extremadura, 40m€, +29%
                               • Aragon, 93m€, +23%
                               • Asturias, 46m€, +19%

     • The Spanish mortgage rates situation for September 2020

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.44%
                               • The lowest rate ever was 2.44% reached in Nov 2019!
                               • The average mortgage duration is 24 years
                               • 51.5% have variable interest rates
                               • 48.5% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.12%,
                               • The average rate for fixed-rate mortgages is 2.84%,
                               • The average amount issued per mortgage is €135,035: a decrease of 1% vs last year.
                               • 26,878 mortgages were issued 18.4% vs last year.
                               • 3,6 € Bn of mortgages issued for housing in September 2020, +17.2% vs last year.

        

       The top 3 regions with the biggest increases for the number of mortgages issued:

       1. 1. 1. 1. 1. 1. 1. 1. • Madrid, +66% to 5,077 mortgages
                               • Balearic Islands, +63% to 823 mortgages
                               • Catalonia, +42.4% to 3,968 mortgages

       The top region in terms of amounts of mortgages issued

       1. 1. 1. 1. 1. 1. 1. 1. • Extremadura, 51m€, +220%
                               • La Rioja, 13m€, +106%
                               • Cantabria, 39m€, +106%
                               • Asturias, 55m€, +105%

     • The Spanish mortgage rates situation for August 2020

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.49% (vs 2.54% last month)
                               • The lowest rate ever was 2.47% reached in Nov 2019!
                               • The average mortgage duration is 24 years
                               • 50.6% have variable interest rates
                               • 49.4% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.18%,
                               • The average rate for fixed-rate mortgages is 2.87%,
                               • The average amount issued per mortgage is €134,700: an increase of 4% vs last year.
                               • 19,825 mortgages were issued -3% vs last year.
                               • 3,7 € Bn of mortgages issued for housing in August 2020, +0.5% vs last year.

        

       The top 3 regions with the biggest increases for the number of mortgages issued:

       1. 1. 1. 1. 1. 1. 1. 1. • Navarra, +32% to 286 mortgages
                               • Castilla – La Mancha, +15% to 981 mortgages
                               • Cantabria, +12% to 279 mortgages

       The top region in terms of amounts of mortgages issued

       1. 1. 1. 1. 1. 1. 1. 1. • La Rioja, 15m€, +145%
                               • Canarias, 126m€, +91%
                               • Castilla – La Mancha, 94m€, +49%
                               • Extremadura, 33m€, +34%

       1. The Spanish mortgage rates situation for July 2020

          1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.54% (vs 2.49% last month)
                                  • The lowest rate ever was 2.47% reached in Nov 2019!
                                  • The average mortgage duration is 23 years
                                  • 47.5% have variable interest rates
                                  • 52.5% have fixed interest rates
                                  • The average rate for variable rate mortgages is 2.27%,
                                  • The average rate for fixed-rate mortgages is 2.86%,
                                  • The average amount issued per mortgage is €132,346: an increase of 8.9% vs last year.
                                  • 26,014 mortgages were issued -23% vs last year.
                                  • 3,4 € Bn of mortgages issued for housing in July 2020, -16% vs last year.

           

          The top 3 regions with the biggest increases for the number of mortgages issued:

          1. 1. 1. 1. 1. 1. 1. 1. • La Rioja, +51% to 202 mortgages
                                  • Canarias, +45% to 1,221 mortgages
                                  • Valencian community, +31% to 3,341 mortgages

          The top region in terms of amounts of mortgages issued

          1. 1. 1. 1. 1. 1. 1. 1. • Basque Country, 282m€, +33%

       The Spanish mortgage rates situation for June 2020

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.5% (vs 2.49% last month)
                               • The lowest rate ever was 2.47% reached in Nov 2019!
                               • The average mortgage duration is 23 years
                               • 54% have variable interest rates
                               • 46% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.11%,
                               • The average rate for fixed-rate mortgages is 2.96%,
                               • The average amount issued per mortgage is €131,670: an increase of 7.5% vs last year.
                               • 26,748 mortgages were issued -13% vs last year.
                               • 3,5 € Bn of mortgages issued for housing in June 2020, -6% vs last year.

        

       The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • Basque Country, +129% to 2,811 mortgages
                               • Extremadura, +79% to 562 mortgages
                               • Murcia, +59% to 798 mortgages

        

       The top regions in terms of amounts of mortgages issued are (change vs 1 year ago):

       1. 1. 1. 1. 1. 1. 1. 1. • Basque Country, 366m€, +95%
                               • Extremadura, 45m€, +85%
                               • Murcia, 68m€, +57%

        

       The Spanish mortgage rates situation in May 2020

       Best mortgage conditions in Spain?

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.49% (vs 2.48% last month)
                               • The lowest rate ever was 2.47% reached in Nov 2019!
                               • The average mortgage duration is 23 years
                               • 50.5% have variable interest rates
                               • 49.5% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.11%,
                               • The average rate for fixed-rate mortgages is 3%,
                               • The average amount issued per mortgage is €127,145: an increase of 3.2% vs last year.
                               • 25,538 mortgages were issued -27% vs last year.
                               • 3.2 € Bn of mortgages issued for housing in May 2020, -29% vs last year.

        

       The top regions with the biggest increases for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • Andalusia, +6.8% to 5,580 mortgages
                               • Basque Country, +6.5% to 1,221 mortgages
                               • Galicia, +6.4% to 820 mortgages

        

       The top region in terms of amounts of mortgages issued are (change vs 1 year ago):

       1. 1. 1. 1. 1. 1. 1. 1. • Murcia, 56.8 M€, +22%

        

       The Spanish mortgage rates situation in April 2020

       Best mortgage conditions in Spain?

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.48% (vs 2.56% last month)
                               • The lowest rate ever was 2.47% reached in Nov 2019!
                               • The average mortgage duration is 24 years
                               • 48.4% have variable interest rates
                               • 51.6% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.13%,
                               • The average rate for fixed-rate mortgages is 2.86%,
                               • The average amount issued per mortgage is €125,300: an decrease of 1.2% vs last year.
                               • 23,840 mortgages were issued -18% vs last year.
                               • 3 € Bn of mortgages issued for housing in April 2020, -19% vs last year.

        

       The 3 regions with the biggest decreases for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • Andalusia, +6.8% to 5,580 mortgages
                               • Basque Country, +6.5% to 1,221 mortgages
                               • Galicia, +6.4% to 820 mortgages

        

       The top region in terms of amounts of mortgages issued are (change vs 1 year ago):

       1. 1. 1. 1. 1. 1. 1. 1. • Murcia, 56.8 M€, +22%

        

       The Spanish mortgage rates situation in March 2020

       Best mortgage conditions in Spain?

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.56%
                               • The lowest rate ever is 2.47% reached in November 2019!
                               • The average mortgage duration is 23 years
                               • 47% have variable interest rates
                               • 53% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.21%,
                               • The average rate for fixed-rate mortgages is 2.92%,
                               • The average amount issued per mortgage is €127,888: an increase of 1.6% vs last year.
                               • 26,382 mortgages were issued -15% vs last year.
                               • 3.4 € Bn of mortgages issued for housing in March 2020, -13% vs last year.

        

       The top region with the biggest increases for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • La Rioja, +44% to 254 mortgages

        

       The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):

       1. 1. 1. 1. 1. 1. 1. 1. • Aragon, 93 M€, +48%
                               • Asturias, 57 M€, +24%
                               • Cantabria, 34M€, +8%

        

        

       The Spanish mortgage rates situation in February 2020

       Best mortgage conditions in Spain?

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.64% (vs 2.55% last month)
                               • The lowest rate ever is 2.47% reached in November 2019!
                               • The average mortgage duration is 23 years
                               • 62% have variable interest rates
                               • 37% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.47%
                               • The average rate for fixed-rate mortgages is 3.02%

        

       The 3 regions with the biggest decreases for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • Navarre, -45% to 373 mortgages
                               • Asturias, -38% to 694 mortgages
                               • Canary Islands, -31% to 1.035 mortgages

        

       The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):

       1. 1. 1. 1. 1. 1. 1. 1. • Catalonia, 2.378 M€, +200%
                               • Andalusia, 1.109 M€, +57%
                               • Aragon, +30%

        

       The Spanish mortgage rates situation in January 2020

       Best mortgage conditions in Spain?

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.55% (vs 2.53% last month)
                               • The lowest rate ever is 2.47% reached in November 2019!
                               • The average mortgage duration is 22 years
                               • 58% have variable interest rates
                               • 42% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.22%
                               • The average rate for fixed-rate mortgages is 3.05%

       The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • Balearic Islands, +144% to 1.494 mortgages
                               • Asturias, +134% to 1.120 mortgages
                               • Castilla y Leon, +111% to 1.884 mortgages

        

       The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):

       1. 1. 1. 1. 1. 1. 1. 1. • La Roja, 20 M€, +84%
                               • Navarre, 71 M€, +75%
                               • Balearic Islands, +74%

        

       The Spanish mortgage rates situation in December 2019

       Best mortgage conditions in Spain?

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.53% (vs 2.47% last month)
                               • The average mortgage rate decreased by 5% vs 1 year ago
                               • The lowest rate ever is 2.47% reached in November 2019!
                               • The average mortgage duration is 23 years
                               • 56% have variable interest rates
                               • 44% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.2%, 9.1% less than 1 year ago
                               • The average rate for fixed-rate mortgages is 3.06%, 2.6% more than 1 year ago

       The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • Castilla – La Mancha, +97% to 1.952 mortgages
                               • Canary Islands, +55% to 1.824 mortgages
                               • Madrid, +23% to 6.787 mortgages

        

       The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):

       1. 1. 1. 1. 1. 1. 1. 1. • Castilla – La Mancha, 143 M€, +137%
                               • Madrid, 1.114 M€, +57%
                               • Canary Islands, +54%

        

       The Spanish mortgage rates situation in November 2019

       Best mortgage conditions in Spain?

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.47% (vs 2.5% last month)
                               • The average mortgage rate decreased by 6.1% vs 1 year ago
                               • The lowest rate ever is the current rate 2.47%!
                               • The average mortgage duration is 24 years
                               • 57.3% have variable interest rates
                               • 42.7% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.15%, 12.1% less than 1 year ago
                               • The average rate for fixed-rate mortgages is 3.01%, 0.3% more than 1 year ago
                               • The average amount issued per mortgage is €129,800: a decrease of 2.1% vs last year.
                               • 29,416 mortgages were issued -0.5% vs last year.
                               • 3.8 € Bn of mortgages issued for housing in October 2019, -0.9% vs last year.

        

       The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):

       All the regions noticed a month on month decrease

       Here are the most noticeable regions:

       1. 1. 1. 1. 1. 1. 1. 1. • Extremadura, +26.4% to 526 mortgages
                               • Cantabria, +13.6% to 376 mortgages
                               • Valencia Community, +12.8% to 3614 mortgages

        

       The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):

       1. 1. 1. 1. 1. 1. 1. 1. • Extremadura, 48 M€, +72%
                               • Balearic Islands, 200 M€, +37%
                               • Cantabria, 43 M€, +36%

        

       The Spanish mortgage rates situation in October 2019

       Best mortgage conditions in Spain?

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.50% (vs 2.51% last month)
                               • The average mortgage rate decreased by 5% vs 1 year ago
                               • The lowest rate ever is the current rate 2.50%!
                               • The average mortgage duration is 24 years
                               • 54.7% have variable interest rates
                               • 45.3% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.09%, 11.2% less than 1 year ago
                               • The average rate for fixed-rate mortgages is 3.02%, 1.4% less than 1 year ago
                               • The average amount issued per mortgage is €129,000: a decrease of 2.1% vs last year.
                               • 29,691 mortgages were issued -1.1% vs last year.
                               • 3.8 € Bn of mortgages issued for housing in September 2019, -1.1% vs last year.

        

       The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):

       All the regions noticed a month on month decrease

       Here are the most noticeable regions:

       1. 1. 1. 1. 1. 1. 1. 1. • La Rioja, +127% to 186 mortgages
                               • Extremadura, +92% to 416 mortgages
                               • Cantabria, +80% to 331 mortgages

        

       The top 5 regions in terms of amounts of mortgages issued are (change vs 1 year ago):

       1. 1. 1. 1. 1. 1. 1. 1. • Madrid, 936 M€, -12%
                               • Catalonia, 788 M€, -12%
                               • Andalusia, 660 M€, +8%
                               • Valencia Community, 327 M€, +20%
                               • Basque Country, 235 M€, +20%

        

       The Spanish mortgage rates situation in September 2019

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.51% (vs 2.55% last month)
                               • The average mortgage rate decreased by 3% vs 1 year ago
                               • The lowest rate ever is the current rate 2.51%!
                               • The average mortgage duration is 24 years
                               • 63.4% have variable interest rates
                               • 36.6% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.13%, 9.3% less than 1 year ago
                               • The average rate for fixed-rate mortgages is 3.16%, 2.5% less than 1 year ago
                               • The average amount issued per mortgage is €135,452: a increase of 5.3% vs last year.
                               • 22,488 mortgages were issued -29.9% vs last year.
                               • 3 € Bn of mortgages issued for housing in August 2019, -29.9% vs last year.

        

       The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • Navarre, +50% to 328 mortgages
                               • Madrid, +47% to 4,708 mortgages
                               • Castilla La Mancha, +26% to 897 mortgages

        

       The top 5 regions in terms of amounts of mortgages issued are (change vs 1 year ago):

       1. 1. 1. 1. 1. 1. 1. 1. • Madrid, 936 M€, -27%
                               • Catalonia, 545 M€, -28%
                               • Andalusia, 463 M€, -29%
                               • Valencian Community, 255 M€, -29%
                               • Basque Country, 203 M€, -21%

        

       The Spanish mortgage rates situation in August 2019

       1. 1. 1. 1. 1. 1. 1. 1. • • Average mortgage has an interest rate of 2.55% (vs 2.56% last month)
                                 • The average mortgage rate decreased by 3% vs 1 year ago
                                 • The lowest rate ever is the current rate 2.55!
                                 • The average mortgage duration is 23 years
                                 • 60.7% have variable interest rates
                                 • 39.3% have fixed interest rates
                                 • The average rate for variable rate mortgages is 2.21%, 3.2% less than 1 year ago
                                 • The average rate for fixed-rate mortgages is 3.18%, 1.5% more than 1 year ago
                                 • 20,385 mortgages were issued -29.9% vs last year.
                                 • The average amount issued per mortgage is €128,501: a increase of 5% vs last year.
                                 • 2,6 € Bn of mortgages issued for housing in August 2019, -29.9% vs last year.

        

       The top 3 regions with the biggest decreases for the number of mortgages issued are (monthly changes):

        

       1. 1. 1. 1. 1. 1. 1. 1. • La Rioja, -72% to 74 mortgages
                               • Extremadura, -57% to 279 mortgages
                               • Castilla La Mancha, -53% to 714 mortgages

        

       The top 3 regions with the biggest decreases in terms of amounts of mortgages issued are (yearly change):

       1. 1. 1. 1. 1. 1. 1. 1. • La Rioja, -65% to 6m issued
                               • Extremadura, -56% to 23m issued
                               • Canariasa, -45% to 66m issued

        

       The Spanish mortgage rates situation in July 2019

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.56% (vs 2.57% last month)
                               • The average mortgage rate decreased by 1.2% vs 1 year ago
                               • The lowest rate ever is the current rate 2.56!
                               • The average mortgage duration is 23 years
                               • 58.1% have variable interest rates
                               • 41.9% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.14%, 7.3% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 3.16%, 2.8% less than 1 year ago,
                               • The average amount issued per mortgage is €121,414: a decrease of 2,5% vs last year.
                               • 33,344 mortgages were issued +13.1% vs last year.
                               • 6,3 € Bn of mortgages issued for housing in July 2019, +15.2% vs last year.

        

       The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

       For a first time since long, all the regions suffer a month on month negative growth. The one with the smallest decreases are

       1. 1. 1. 1. 1. 1. 1. 1. • La Rioja, +79.3% to 269 mortgages
                               • Castilla La Mancha, +44% to 1,508 mortgages
                               • Asturias, +37% to 671 mortgages

        

       The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):

       1. 1. 1. 1. 1. 1. 1. 1. • Extremadura, +45.9% to 652 mortgages
                               • Castilla La Mancha, +38% to 1,508 mortgages
                               • Castilla y Leon, +33.9% to 1,430 mortgages

        

       The Spanish mortgage rates situation in June 2019

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.57% (vs 2.62% last month)
                               • The average mortgage rate decreased by 3% vs 1 year ago
                               • The lowest rate ever is 2.57!
                               • The average mortgage duration is 24 years
                               • 55.5% have variable interest rates
                               • 44.5% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.29%, 6.1% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 3.01%, 1.3% less than 1 year ago,
                               • The average amount issued per mortgage is €119,964: a increase of 3,7% vs last year.
                               • 29,900 mortgages were issued -2.5% vs last year.
                               • 3,6 € Bn of mortgages issued for housing in May 2019, -6.1% vs last year.

       The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

       For a first time since long, all the regions suffer a month on month negative growth. The one with the smallest decreases are

       1. 1. 1. 1. 1. 1. 1. 1. • Region of Murcia, -2.6% to 824 mortgages
                               • Community of Navarra, -4.5% to 383 mortgages
                               • Basque country, -5.2% to 1,703 mortgages

        

       The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):

       1. 1. 1. 1. 1. 1. 1. 1. • Community of Valencia, +16.9% to 3,748 mortgages
                               • Region of Murcia, +12% to 824 mortgages
                               • Basque country, +9.3% to 1,703 mortgages

        

        

       The Spanish mortgage rates situation in May 2019

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.59% (same as last month)
                               • The average mortgage rate decreased by 2.9% vs 1 year ago
                               • The lowest rate ever is 2.57!
                               • The average mortgage duration is 24 years
                               • 56.8% have variable interest rates
                               • 43.2% have fixed interest rates (+6.7% vs last year)
                               • The average rate for variable rate mortgages is 2.3%, 5.1% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 3.09%, 1.8% less than 1 year ago,
                               • The average amount issued per mortgage is €124,700: a increase of 3.9% vs last year.
                               • 29,032 mortgages were issued -0.1% vs last year.
                               • 3.6 € Bn of mortgages issued for housing in April 2019, +0.6% vs last year.

       The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • Community of Navarra, +45.3% to 510 mortgages
                               • Aragon, +19.7% to 814 mortgages
                               • Asturias, +11.9% to 556 mortgages

        

        

       The Spanish mortgage rates situation in March 2019

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.62% (same as last month)
                               • The average mortgage rate decreased by 2.3% vs 1 year ago
                               • The lowest rate ever is 2.57!
                               • The average mortgage duration is 24 years
                               • 58.1% have variable interest rates
                               • 41.9% have fixed interest rates (+24.5% vs last year)
                               • The average rate for variable rate mortgages is 2.34%, 2.7% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 3.11%, 1.6% more than 1 year ago,
                               • The average amount issued per mortgage is €125,341: a increase of 3.9% vs last year.
                               • 30,716 mortgages were issued + 9.2% vs last year.
                               • 3.8 € Bn of mortgages issued for housing in March 2019, +20.3% vs last year.

       The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • The Balearic Islands, +47% to 1,159 mortgages
                               • Andalusia, +17% to 6,069 mortgages
                               • Extremadura, +14% to 503 mortgages

        

       The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):

       1. 1. 1. 1. 1. 1. 1. 1. • The Balearic Islands, +49% to 1,159 mortgages
                               • Extremadura, +36% to 503 mortgages
                               • Murcia, +31% to 503 mortgages

        

        

       The Spanish mortgage rates situation in February 2019

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.62% (vs 2.57% last month)
                               • The average mortgage rate decreased by 1.1% vs 1 year ago
                               • The current rate: 2.62% is close to the lowest rate ever of 2.57!
                               • The average mortgage duration is 23 years
                               • 58.2% have variable interest rates
                               • 41.8% have fixed interest rates (+17.4% vs last year)
                               • The average rate for variable rate mortgages is 2.37%, 4% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 3.05%, 0.4% more than 1 year ago,
                               • The average amount issued per mortgage is €123,911: a increase of 2.9% vs last year.
                               • 31.018 mortgages were issued + 9.2% vs last year.
                               • 3.8 € Bn of mortgages issued for housing in February 2019, +12.3% vs last year.

       The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

       After a seasonally slower December, January looks even stronger vs December:

       1. 1. 1. 1. 1. 1. 1. 1. • Asturias, +24.9% to 728 mortgages
                               • Catalonia, +8.4% to 5.448 mortgages
                               • Pais Vasco, + 2.9% to 1.713 mortgages

        

       The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):

       1. 1. 1. 1. 1. 1. 1. 1. • Asturias, +56% to 728 mortgages
                               • Castilla – La Mancha, +43% to 1.321 mortgages
                               • La Rioja, + 39% to 241 mortgages

        

       The 6 regions with the biggest growth on the full year 2018

       1. 1. 1. 1. 1. 1. 1. 1. • The Valencian Community, +15.7% to 38.004 mortgages
                               • The Community of Madrid, +14.9% to 65.503 mortgages
                               • Castilla – La Mancha, +14.8% to 12.501 mortgages
                               • La Rioja, +13.5% to 2.332 mortgages
                               • The Community of Navarre, +13.4% to 4.615 mortgages
                               • Catalonia, +13% to 57.477 mortgages
                               • Extremadura, +12.3% to 5.550 mortgages

        

       The 4 most active regions in 2018

       No surprises, we keep the same regions as the most active ones in terms of transactions:

       1. 1. 1. 1. 1. 1. 1. 1. • The Community of Madrid, 65.503 mortgages with a growth of 14.9%
                               • The Andalusia, 65.431 mortgages with a growth of 8.6%
                               • Catalonia, 57.477 mortgages with a growth of 14.9%
                               • The Valencian Community, 38.004 mortgages with a growth of 15.7%

        

        

       The Spanish mortgage rates situation in January 2019

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.57% (vs 2.62% last month)
                               • The average mortgage rate decreased by 4.3% vs 1 year ago
                               • The current rate: 2.57% is the lowest rate ever!
                               • The average mortgage duration is 22 years
                               • 62.8% have variable interest rates
                               • 37.2% have fixed interest rates (+9.1% vs last year)
                               • The average rate for variable rate mortgages is 2.32%, 8% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 3.09%, 1.6% more than 1 year ago,
                               • The average amount issued per mortgage is €121,036: a decrease of -0.7% vs last year.
                               • 36.832 mortgages were issued + 22.5% vs last year.
                               • 4.4 € Bn of mortgages issued in January 2019, +21.6% vs last year.

        

       The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

       After a seasonally slower December, January looks even stronger vs December:

       1. 1. 1. 1. 1. 1. 1. 1. • Madrid Community, +168% to 10.478 mortgages
                               • Castilla – La Mancha, +101% to 1.485 mortgages
                               • Extremadura, + 76% to 542 mortgages

        

       The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):

       1. 1. 1. 1. 1. 1. 1. 1. • Madrid Community, +105% to 10.478 mortgages
                               • Castilla – La Mancha, +25% to 1.485 mortgages
                               • Aragón, + 17% to 910 mortgages

        

       The Spanish mortgage rates situation in December 2018

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.62% (vs 2.61% last month)
                               • The average mortgage rate decreased by 3.9% vs 1 year ago
                               • The lowest rate ever is 2.57%!
                               • The average mortgage duration is 24 years
                               • 58.6% have variable interest rates
                               • 41.4% have fixed interest rates (+9.1% vs last year)
                               • The average rate for variable rate mortgages is 2.42%, 4.7% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 2.98%, 4.8% less than 1 year ago,
                               • The average amount issued per mortgage is €126,394: an increased of 9.4% vs last year.
                               • 20.933 mortgages were issued + 0.9% vs last year.
                               • 2.6 € Bn of mortgages issued in December 2018, +10.4% vs last year.

        

       The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

       All the regions had a negative growth. Of course December is well known for being less busy all over the world.

        

       The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):

       1. 1. 1. 1. 1. 1. 1. 1. • The Basque Country, +20.1% to 1.333 mortgages
                               • The Valencian Community, +17.3% to 2.456 mortgages
                               • Catalonia, +12% to 3.390 mortgages

        

       The Spanish mortgage rates situation in November 2018

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.61% (vs 2.57% last month)
                               • The average mortgage rate decreased by 5.7% vs 1 year ago
                               • The lowest rate ever is 2.57%!
                               • The average mortgage duration is 23 years
                               • 64% have variable interest rates
                               • 36% have fixed interest rates (+25.9% vs last year)
                               • The average rate for variable rate mortgages is 2.42%, 0.7% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 3.07%, 14.1% less than 1 year ago,
                               • The average amount issued per mortgage is €130,651: an increased of 5.5% vs last year.
                               • 28.835 mortgages were issued + 14.2% vs last year.
                               • 5.6 € Bn of mortgages issued in November 2018, +13.7% vs last year.

        

       The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • The Canary Islands, +39.4% to 1.299 mortgages
                               • The Balearic Islands, +17.8% to 899 mortgages
                               • Asturies, +4.7% to 532 mortgages

        

       The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):

       1. 1. 1. 1. 1. 1. 1. 1. • The Canary Islands, +28.6% to 1.299 mortgages
                               • Catalonia, +25% to 5.363 mortgages
                               • The Valencian Community, +24.4% to 3.178 mortgages

        

       The Spanish mortgage rates situation in October 2018

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.57% (vs 2.59% last month)
                               • The average mortgage rate decreased by 4.3% vs 1 year ago
                               • The lowest rate ever is 2.57%! YES, the current rate!
                               • The average mortgage duration is 24 years
                               • 60.4% have variable interest rates
                               • 39.6% have fixed interest rates (+25.9% vs last year)
                               • The average rate for variable rate mortgages is 2.43%, 2.9% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 2.99%, 3.7% less than 1 year ago,
                               • The average amount issued per mortgage is €126,926: an increased of 4.6% vs last year.
                               • 30.356 mortgages were issued + 20.4% vs last year.
                               • 5.8 € Bn of mortgages issued in October 2018, +13.9% vs last year.

       The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • Navarra Community, +21.6% to 472 mortgages
                               • Catalonia, +10.7% to 5.808 mortgages
                               • Castilla y Leon, +4.8% to 1.153 mortgages

       The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):

       1. 1. 1. 1. 1. 1. 1. 1. • Navarra Community, +53.7% to 472 mortgages
                               • Catalonia, +40.7% to 5.808 mortgages
                               • Aragon, +36.8% to 729 mortgages

        

       The Spanish mortgage rates situation in September 2018

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.59% (vs 2.62% last month)
                               • The average mortgage rate decreased by 8.3% vs 1 year ago
                               • The lowest rate ever is 2.59%!
                               • The average mortgage duration is 24 years
                               • 59.9% have variable interest rates
                               • 40.1% have fixed interest rates (+16.7% vs last year)
                               • The average rate for variable rate mortgages is 2.36%, 10.8% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 3.02%, 5.9% less than 1 year ago,
                               • The average amount issued per mortgage is €127,732: an increased of 4.1% vs last year.
                               • 32.457 mortgages were issued + 9.5% vs last year.
                               • 6.6 € Bn of mortgages issued in September 2018, +10% vs last year.

       The top 4 regions with the biggest growth for the number of mortgages issued are (monthly changes):

       1. 1. 1. 1. 1. 1. 1. 1. • Valencian Community, +32.5% to 3.863 mortgages
                               • Madrid, +30.6% to 6.530 mortgages
                               • Murcia, +21.5% to 866 mortgages
                               • Catalonia, +18.4% to 5.246 mortgages

       The top 4 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):

       1. 1. 1. 1. 1. 1. 1. 1. • La Rioja, +123%
                               • Extremadura, +54%
                               • The community of Navarre, +37%
                               • Madrid, +28%

        

       The Spanish mortgage rates situation in August 2018

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.62% (vs 2.59% last month)
                               • The average mortgage rate decreased by 4.3% vs 1 year ago
                               • The lowest rate ever is 2.59%!
                               • The average mortgage duration is 24 years
                               • 59.8% have variable interest rates
                               • 40.2% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.43%, 5.5% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 2.99%, 3.1% less than 1 year ago,
                               • The average amount issued per mortgage stands at €122,424, an increased of 9.8% vs last year.
                               • 28.755 mortgages were issued + 6.8% vs last year.
                               • 5.4 € Bn of mortgages issued in August 2018, +11% vs last year.

        

       The top 4 regions with the biggest growth for the number of mortgages issued are:

       1. 1. 1. 1. 1. 1. 1. 1. • Extremadura, +31% to 604 mortgages
                               • The Canary Islands, +19,6% to 1.396 mortgages
                               • Cantabria, +16,4% to 326 mortgages
                               • Madrid, +13,9% to 5.000 mortgages

        

       The top 4 regions with the biggest growth in terms of amounts of mortgages issued are:

       1. 1. 1. 1. 1. 1. 1. 1. • Extremadura, +61%
                               • Madrid, +29%
                               • Andalusia, +28%
                               • Basque country, +24%

        

       The Spanish mortgage rates situation in July 2018

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.59% (vs 2.63% last month)
                               • Average mortgage rate decreased by 6.3% vs 1 year ago
                               • The lowest rate ever is 2.59%! YES, the current rate reached this month!
                               • Mortgage duration is 22 years
                               • 62.3% have variable interest rates
                               • 37.7% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.32%, 7.3% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 3.07%, 5.7% less than 1 year ago,
                               • The average amount issued per mortgage stands at €125,120, an increased of 2.1% vs last year.
                               • 29.287 mortgages were issued + 14.6% vs last year.
                               • 3.6 € Bn of mortgages issued in July 2018, +17% vs last year.

        

       The top 4 regions with the biggest growth for the number of mortgages issued:

       1. 1. 1. 1. 1. 1. 1. 1. • Extremadura, +38.9% to 457 mortgages.
                               • The Valencian Community, +28.1% to 3.276 mortgages
                               • La Rioja, +28.1% to 283 mortgages
                               • Madrid, +27,5% to 5.713 mortgages

        

       The top 4 regions with the biggest growth in terms of amounts of mortgages issued:

       1. 1. 1. 1. 1. 1. 1. 1. • La Rioja, +77.3%
                               • The region of Murcia, +43%
                               • Cantabria, +39.8%
                               • The Valencian Community, +39%

        

       The Spanish mortgage rates situation in June 2018

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.63%
                               • Average mortgage rate decreased by 6.8% vs 1 year ago
                               • The lowest rate ever is 2.62% reached in March 2018
                               • Mortgage duration is 23 years
                               • 62.9% have variable interest rates
                               • 37.1% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.19%, 11.3% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 3.25%, 0.5% more than 1 year ago,
                               • The average amount issued per mortgage stands at €123,896, an increased of 5.1% vs last year.
                               • 30.600 mortgages were issued + 3.9% vs last year.

        

       The top 3 regions with the biggest mortgages growth:

       1. 1. 1. 1. 1. 1. 1. 1. • Madrid, +23,2% to 6.399 mortgages,
                               • Aragon, +10.6% to 957 mortgages,
                               • Extremadura, +18.4% to 616 mortgages.

        

       The Spanish mortgage rates situation in May 2018

       1. 1. 1. 1. 1. 1. 1. 1. • Average mortgage has an interest rate of 2.63%
                               • Average mortgage rate decreased by 4.3% vs 1 year ago
                               • The lowest rate ever was 2.62% in March 2018
                               • Mortgage duration is 22 years
                               • 61.9% have variable interest rates
                               • 38.1% have fixed interest rates
                               • The average rate for variable rate mortgages is 2.4%, 9.8% less than 1 year ago,
                               • The average rate for fixed-rate mortgages is 3.12%, 6.6% more than 1 year ago,
                               • The average amount issued per mortgage stands at €117,044, an increased of 2.8% vs last year.
                               • 31.166 mortgages were issued + 7.3% vs last year.

        

       While the top 4 regions in terms of annual growth were:

       1. 1. 1. 1. 1. 1. 1. 1. • The Canary Islands, +70,9% to 1.984 mortgages,
                               • Extremadura, +18.5% to 570 mortgages,
                               • Pais Vasco, +18.4% to 1.783 mortgages,
                               • Navarra, +17.3% to 441 mortgages

        

       Check the Spanish report from the INE.

       Looking for a mortgage or a local expert in Alicante, Malaga, Valencia, Madrid, Barcelona,…? Ask us directly!

       

       Stéphane

       Senior analyst and strategist at HTBIS

       Check the full HTBIS team here

The post What are the best Spanish mortgage rates? January 2025 update appeared first on How to buy in Spain.

Is it too late to invest in bank repossessions properties in Spain?

Less hassle and a nice return?

Many of our readers told us that, yes, you get a return with “buy to let” properties in Spain but you have to manage your property and all the issues going with it, so they asked us: are you aware of any product to get “smart exposure” to the real estate market in Spain? Many others asked us, how can I invest in bank-repossessed properties in Spain?

We found a fund investing only in bank-repossessed properties in Spain and checked it for ourselves so that’s why we wanted to share the results of our work with you.

1. 1. Why did we like the fund and this opportunity?

      1. The management team has 10 years of experience and a track record
      2. Competitive edge: Thanks to their huge geolocalized database of prices’ history with properties’ characteristics: the ones they bought and sold, all the bank properties sold for the last years, all the properties sitting on the market… They have a very accurate idea of what is the “fair” price of any property when bidding for a portfolio. Appraisal work and an on-site visit will do the rest of the job.
      3. The Spanish legal system: “creates” this situation and doesn’t give a lot of choices to the Spanish banks for managing their repossessed properties while keeping a good image.
      4. It is very costly for banks to hold properties on their balance sheet: both in terms of solvency ratio and yearly costs (tax, insurance, community costs, maintenance costs,…)
      5. Opportunity should stay for many years: there are not enough players to dry up properties from the Spanish banks’ balance sheets. Do you remember, it all started in 2008!
      6. Clear investment process: this is a very data-driven and systematic investment approach with many verification steps.
      7. Allows to buy real estate on the Spanish market “at a discount”. As all properties are bought with a big discount, the risk (if any) to the real estate market prices is much lower than any real estate investment: whenever a property is sold, the discount is ‘locked” for the investor which reduces his future risk even more, should the real estate market go down at any time in the future.
      8. Last but not least, no hassle as you would have with any direct real estate investment anywhere in the world.

       

      Of course, as it is a fund, investors should check their tax situation for any investment.

      As you could guess, this kind of fund is for well-informed (and wealthy) investors able to manage and diversify their risks. This is not a recommendation to invest or any advice regarding this investment opportunity. That is why we don’t advertise the name of the company managing this fund but if you want to go further with your due diligence, you can contact them by filling out the form at the end of the report.

       

      Here is what we found out:

1. A fund buying bank repossessions directly from Spanish banks

    

   The fund pursues a unique investment strategy of recurrently:

   1. Acquiring,
   2. repossessing and
   3. reselling residential properties in well-populated Spanish regions.

    

   The properties may be subject to adverse possession or “Squatters”, which is resolved by reaching an amicable financial settlement with the occupant. If this doesn’t work, the fund will start a legal procedure and this will take a maximum of 3 years to get full ownership. 90% of the time the fund will get an agreement with the current squatters.

    

   The Fund will cherry-pick properties among portfolios of occupied residential assets offered by financial institutions.

   

   Example of a Bank repossession in Spain in the portfolio

    

   An institutional manager based in Madrid

   The fund manager is active for more than 10 years in this market.

   Of course, as the fund manager is well known in Spain, they get portfolios all the time from the biggest banks in Spain.

   The assets are only offered to a select group of reputable buyers, like the institutional manager managing the fund, due to the complex nature of solving potential adverse possession situations.

    

   They told us that unique sourcing and strict discipline enables the Fund to buy at very deep discounts vs the current market price as they have to get the property back to the market (before tax expenses), but yes that’s why there is a nice margin left for the buyer, not bad!

    

   The Fund Manager will partner with the leading Spanish-occupied real estate specialist which employs a socially responsible repossession procedure based on mutual agreement Ethical conduct, compliance and strict adherence to legislation are essential.

   Financial settlement occupants are offered financial compensation in return for vacating the property voluntarily.

    

   The Luxembourg fund will reinvest in new properties continuously

   The fund has an open-ended structure, which means that it will stay open as long as the opportunity is present for the fund manager, and is full AIFM regulated and registered in Luxembourg as a “Reserved Alternative Investment Fund” (RAIF) which allows the fund to invest directly in real estate.

    

   The proceeds from sales will be redeployed to buy new portfolios.

    

   The average holding period of a property is 18 months.

    

   Win-win for all the parties involved:

   • banks can offload risk assets sooner,
   • occupants agree with the manager to relocate thanks to a mutual agreement.

    

   Target Net Return

    

   The open-ended fund was launched in 2021 and targets annual net returns of 8.5% to 11% without leverage in a stagnating housing market. Over time the fund may use limited leverage for enhancing returns to 11% -14%.

   The fund manager based in Madrid has been running these strategies since 2011, which is why they could give return targets.

   High-demand area’s

   The fund will exclusively focus on well-populated area’s which have sufficient transaction volume i.e. no rural area’s. A majority of assets will be located in major cities focused on Spanish citizens, not tourists.

    

   Buffers against capital losses

   The fund is buying at very deep discounts, so even after accounting for all costs and taxes, post-COVID real estate prices would have to decline by more than 12% to make a small capital loss, according to the manager. In addition, the Fund is spreading asset purchases over time making it less sensitive to price shocks compared to closed-end real estate funds.

   Unique proprietary technology

   Each property is appraised by a proprietary big data valuation software, which tracks key features (e.g. price, location, surface, floor, amenities,…) of 25mm references gathered over many years. Each appraisal is also supported by a dedicated team of analysts. In addition, a third party will be appointed to verify the value of the holdings.

   Strategy with a track record

   The fund manager told us that they did successfully repossessed and resold over 2,500 assets since 2011. Over 90% of historical property portfolios were eventually sold at a profit that was in line with or above the Fund’s target return.

    

   Ethical & socially responsible procedures

   Based on reaching a voluntary agreement with occupant(s). No occupant is ever threatened or evicted by any other means except those explicitly approved by banks and the law.

    

   High barriers to entry

   This is a niche strategy that is difficult to copy, banks are only willing to sell large portfolios to a legitimate buyer with national coverage who uphold strong compliance standards.

    

   Limited correlation to financial markets

   They described this strategy as an alternative investment strategy focused on existing residential real estate (no development).

    

   A specific opportunity existing only in Spain

   Due to inertia of legal procedures, the culture of ‘occupants’ and the recovery of a major real estate crisis.

   Since the Global Financial Crisis and the ensuing real estate crisis in Spain, the national and regional lenders have unwillingly become large real estate owners.

    

   Unfavourable impact on bank balances sheets

   Not only do banks lack the expertise and staff to properly manage real estate, but the assets also have an unfavourable impact on their minimum capital requirements.

    

   Many properties have sat idle on banks balance sheets for years, and in the meantime have become occupied by people that have gained unlawful entry to the property and now live in it for free.

    

   In Spain, it may take years for owners to obtain court approval to evict unauthorised occupants. In 2018 it became possible for natural persons to pursue an “express judicial procedure”, a procedure which can still take months to evict occupants out of their own homes, but this is not the case for owners that are legal entities as banks real estate funds. Despite being very slow, the Spanish judicial system eventually favours the rightful owner.

    

   Spanish banks are still offloading legacy real estate portfolios from the 2008 crisis, as well as annually foreclosing over 25 000 assets based on police data, at least 87 000 homes are subject to adverse possession, although some consultants estimate the real number closer to 100 000.

   

   Another example of a Spanish bank repossessed property

    

    

2. What is the investment process?

   There are 4 steps:

   1. Appraisal

   The local partner, thanks to reputation and network, has the opportunity to bid on and cherry-pick from hundreds of assets per week from different institutional sellers.

   Each asset is appraised by proprietary software that sources data from 20 million assets This value is the market value or minimum selling target, under normal conditions.

   Each appraisal is verified by a team of professionals.

    

   2. Acquisition

   Next, they apply a strong discount on top of accounting for fees for acquisition, repossession and sale, which leaves a substantial profit margin to the fund.

   The local partner is bidding on assets all year round, negotiations with banks may take many months due to aggressive bidding (only a small share of bids are ever accepted). The Fund will never acquire portfolio’s below its ROI threshold In addition we may order a third party appraisal of all the individual assets in a portfolio.

    

   3. Repossession

   Each occupied asset is visited by a trained in-house staff member. After identifying the occupant(s), the staff member starts the negotiation.

   The selling bank has already initiated a legal eviction process, so the occupant is often more inclined to accept vacating the property rather than risk contact with law enforcement.

   If the negotiation doesn’t work (ca 10% of cases) the fund will pursue judicial track

    

   4. Sale

   The asset is cleaned, and secured (new lock, fortified doors, alarm) as well as lightly refurbished where necessary.

   The fund hires a network of local real estate agents to sell and promote the repossessed assets.

   Some assets will already be sold 4 months after purchase, 50 within 16 months and 80 within 2 years

   

   Another building of a Spanish bank repossession from the portfolio

    

3. More on Bank Repossessions in Spain

   90% of adverse possession occupancies are resolved through mutual agreement (outside of court)

    

   1. Legal procedure

   Usually, a legal eviction procedure is initiated before the acquisition (by banks). In Spain however, this can be a very cumbersome process, taking up to several years. This track is nevertheless pursued to have some leverage in the negotiation process. All processes strictly comply with legal regulations and are approved by the sellers

   2. Visit Property

   Once the judicial procedure has been initiated, the occupant is notified and visited to explain the situation. Not used to this personal approach, some occupants may already leave. Most leave after negotiating compensation for foregoing a few months of rent (as they know they will otherwise be evicted at some point).

    

   3. Negotiate repossession

   More than 90 of the assets are repossessed through mutual agreement, the rest via legal procedures. Banks and funds are unable to pursue this strategy due to the risk of attracting even more occupants to all their empty assets.

   Hundred of the negotiators are proprietary staff (none outsourced), specialized in repossessing occupied assets in Spain.

    

   4. Security and refurbishment

   Once the property is vacated, it is professionally cleaned, and a fortified door, new lock and alarm system are put in place (to avoid people reoccupying) If needed, some basic painting refurbishment is done, however, the apartments are typically sold in their existing condition (at small discounts compared to fully refurbished or new apartments)

    

4. Attractive economics

   Thanks to their sourcing and in-depth experience the Fund expects to perform above average compared to most real estate funds out there.

   • The Fund’s asset manager has developed a proprietary underwriting software including over 26 million Spanish real estate references and can make 50 000 daily valuations Parameters for valuation include surface, price, m² geolocation, cadastral reference, building, elevator/garage, time in the market, etc
   • AI algorithms are implemented in the decision-making process, however, all valuations are corroborated by at least 2 in-house analysts.
   • Target market price as calculated by in-house software valuation analysts The asset is compared to similar assets (based on the above parameters) on the market and sold within the last months, in a small radius.
   • Purchase price incl taxes and origination fees typically 35% to 40% below the target market price to account for costs and base case profit margin (per portfolio) of 25%.
   • Expected costs include annual property taxes, community fees, repossession charges, refurbishment, alarm, lock and intermediaries (real estate agents).
   • ‘Base case’ profit margin is expected to earn 25% to 27% base case on the total investment (cost transfer tax/stamp duty) at SPV level over 2 to 3 years.
   • Target market price as calculated by in-house software valuation analysts The asset is compared to similar assets (based on the above parameters) on the market and sold within the last months, in a small radius.
   • Excess margin the asset is usually put on the market for 150 of the target price (or 230 of investment) and lowered every 2 to 4 weeks.
   • Historically 90 of all portfolios repossessed by the Fund’s asset manager were sold above base case ROIs (and aggregated target prices).

    

   Of course, don’t underestimate potential risks for any (real estate) investment.

   

   Most of the time, even if bank repossessions are occupied in Spain, they are in a good state.

    

5. Here are some of the risks we identified with the fund strategy

   • Liquidity: Repossessing some assets in the portfolio may take longer than expected, thereby depressing IRR’s.
   • COVID 19 fallout (or further crisis): Increasing public debt and unemployment may negatively impact demand for low-income housing.
   • Valuation risk: Risk of overpaying for certain portfolio assets or the condition of the asset appears to be worse than assumed.
   • Reputation: Repossessing assets subject to adverse possession is a delicate matter Unfair evictions may lead to reputational damage for anyone involved.
   • Refurbishment: Although the assets are expected to be in subpar condition, some assets may be in a poorer state than expected.

    

6. Do you want to know more?

   Ask for more due diligence from the manager by sending your contact details directly to the manager. As you understood our disclaimer at the start of this article, every investor is responsible for his own risks and HTBIS does not promote or advise to invest in any specific product. We accept to put you in direct contact with the fund manager by filling this form so we don’t make any advertising for the company. Don’t hesitate to tell them that you read it on HTBIS, they will surely answer your questions with even more details as they did with us. That is how we create value for our readers.

If you want to find a bank property, here is where you should start: Register to our exclusive Spanish bank properties listings and read: Where are the Spanish bank properties for sale?

Remember, the risks are higher if you buy a bank property from a bank. In Spain, furthermore, we would always advise you to work with a lawyer when you buy a property. He will make sure everything is fine. We developed privileged relationships with local lawyers very active with foreigners, don’t hesitate to ask us for a real estate lawyer anywhere in Spain from our network in a specific region. A technical survey of your Spanish property is strongly advised as it is a bank property.

Before buying in any region, have a quick look at all our research on the top 20 Spanish Cities: Everything you ever wanted to know about the top 20 Spanish Cities real estate markets

Looking for an expert in Spain: Lawyer, Architect, Property Hunter, Mortgage? Ask us directly!

Stéphane

Senior Analyst and Strategist at HTBIS

Check the full HTBIS team here

Our FAQ on Bank repossessions in Spain

The post Are bank repossessions in Spain an attractive investment opportunity? appeared first on How to buy in Spain.

Your ultimate guide to your Spanish NIE number

1. 1. What is the Spanish NIE?

      NIE is the abbreviation for “Número de Identificación de Extranjero”, it is a tax ID for foreigners in Spain. You shouldn’t compare it to the Spanish Golden Visa as the Golden Visa allows foreigners to get a residency if they invest in Spain.

      Check our one-minute videos on that:

      And here is our first Youtube video we did on the same content, you can watch both but the content is the same.

       

   2. Why do I need the Spanish NIE number?

      • Open a bank account
      • Buy a property or insure it
      • Get a mortgage
      • Sign an internet or a phone contract
      • Open a utility contract
      • Buy a car or get a driving license
      • Sign a work contract and get Social security
      • Setup a company
      • … and pay taxes

       

   3. What do I need to get my Spanish NIE number as a European citizen?

      Step 1: Fill in THREE forms in BLOCK CAPITALS “EX – 15 Solicitud de Numero de Identidad de Extranjero NIE y Cert“, per person requiring the NIE. You have to fill it in this Spanish version! But here is a very useful Version where you will find everything translated into English with precise instructions.

      Step 2: Fill in ONE Form 790 in BLOCK CAPITALS, here is the electronic version, and here is the Pdf version of the form 790 pre-filled, per person requiring the NIE. This is the document regarding payment instructions to get the NIE.

      Step 3: Make a copy of all the pages of your Passport

      Step 4: Two recent Passport pictures

      Step 5: Document proving why you need a Spanish NIE number, which differs depending on your intentions. In most cases it is one of those:

      -going to buy a property in Spain

      -job contract from the Spanish company

      -self-employed: a company ownership certificate

      -students: an acceptance letter from the school

      Step 6: Your future address in Spain and proof of health insurance if you are going to live in Spain

      Step 7: NIE application fee, less than 15€ (you could need to pay it to the nearest bank in cash)

      All those documents must be brought to the nearest Spanish Embassy or Consulate after taking an appointment or the General police office in Spain, read further “How do I get my Spanish NIE number?”

      Step 8: For a non-European citizen, proof of legal entry into Spain, like a landing ticket.

       

   4. How do I get my Spanish NIE number?

      There are two easy ways to get your Spanish NIE: either in your home country at the Spanish consulate or embassy, or in Spain. You can get it and do all the steps alone if you are not in a hurry or you can get it done by a third party if you are busy or in a hurry.

      At the Spanish consulate in your own country

      We found the most demanded Spanish embassies and consulates here below but if you don’t find your country, here is the main site to find any Spanish embassy or consulate in the world.

      Here are the addresses of some Spanish consulates and their Instructions for the NIE:

      • Spanish consulates in the United Kingdom and here are the instructions written by the consulate to get the Spanish NIE in the United Kingdom
      • Spanish consulates in France and here are the instructions written by the consulate to get the Spanish NIE in France.
      • Spanish consulates in Belgium and here are the instructions written by the consulate to get the Spanish NIE in Belgium.
      • Spanish consulates in the United States and here are the instructions written by the consulate to get the Spanish NIE in the United States
      • Spanish consulates in Canada and here are the instructions written by the consulate to get the Spanish NIE in Canada.

       

      In Spain, at the Directorate-General offices of the Police,

      • Check the list of the Directorate General offices of the Police in Spain to get your NIE number
      • make sure you don’t need to register online before showing up, it’s the case in Barcelona for instance. Here is the link to book your meeting online (Spanish).

      There are some conditions to get it:

      the foreigner’s identity number, NIE, must be granted by the Directorate General of the Police if those foreigners are not in Spain in an irregular situation.

      Foreign nationals who are related to Spain due to their economic, professional, or social interests may apply personally for the NIE from the Directorate General of the Police, either directly or through the Foreign Nationals’ Offices or Police Stations. In the event that the foreigner is not in Spanish territory at the time of the application, he/she will request the assignment of the NIE from the General Police Headquarters for Foreign Nationals and Borders, through the Spanish Consular Offices abroad. More on that in Spanish on the website of the Spanish police.

       

   5. Who can get the NIE Spain number?

      1. Yourself
      2. A duly mandated representative

       

   6. How long does it take to get my Spanish NIE number?

      Between one hour to up to 2 months depending on the way you do it. So plan accordingly!

       

   7. How long is it valid?

      More than five years ago, the NIE was valid for only a few years but now, your NIE number remains valid forever. So, once you did the work, you can buy a property (if this was the reason why you needed one), even if it is in 5 years.

      Take our advice: get your NIE right away!

Download and print our infographics!

Further reading on the subject

1. 1. • the Spanish ministry on the NIE instructions foreigners will need to follow (in Spanish)
      • NIE information from the Police administration (in Spanish)

Looking for a qualitative new build property? Check our listings from reliable developers.

Discover the best new build projects in Spain available right now

If you want to invest in the Spanish real estate market in Spain, don’t hesitate to read our special report with the 10+ reasons why you should have a look at the Spanish property market.

If you are about to buy in Spain, have a keep look at our useful article: The most loved Spanish regions for foreigners’ properties: British, French, German,…

FAQ on Spanish NIE number

Looking for a property lawyer in Spain? Follow the link and get one of our local lawyers.

Looking for another real estate expert in Spain: Mortgage, Insurance, Survey of property, Property hunting, …? Ask us directly one of our 100+ local partners!

The post Your Ultimate 2023 Guide to Obtaining a Spanish NIE Number – NIE Spain appeared first on How to buy in Spain.

What is the real cost of owning your Spanish property as a non-resident?

Congratulation for your purchase, now let’s check the annual costs of owning your property.

You’ll have those divided into five different groups: Taxes, Insurance, Utilities (Electricity, Water, Gaz, Television, Internet, Telephone), the charges of your own property and eventually Community Charges.

Let’s have a look at a concrete example: a two bedroom apartment in Barcelona of 100 m2 with a market price in 2022 of 440.000€ and a “valor Catastral” of 100,000€. We assume a rental value of 18.000€.

1. Taxes

   If you want to have a detailed view from our experts on this subject, have a look at our article: What taxes do you have to pay on your Spanish property?

   Here is a quick summary:

   a. Local Tax: IBI, “Impuesto sobre Bienes Inmuebles“:

   What is it? A local tax on any Spanish property.

   Who has to pay for it? Any owner of a Spanish property, local or foreigner.

   How do you know? You’ll get a letter after June of any year but some local authorities don’t send it. You owe this tax

   Who is the beneficiary? The tax is payable to your local Town Hall. Those are for infrastructure, waste collection,…

   If you pay too late, you will have to pay a penalty.

   Where can I pay it? Your local Town Hall, a few of them are available online.

   Our tip: A few of them allow domiciliation of payment: very easy, they will take the amount from your account every year. A very good solution if you are living abroad. Make sure your account balance is sufficient: some banks would refuse to pay or would charge you a high interest if the account would fall into negative territory.

   How is the Tax Calculated? The IBI is based on the “Valor Catastral“. The “Valor Cadastral” can be legally adjusted if needed by any Town Hall.

   Our tip: by working with a lawyer, he will make sure that the previous owner paid for it, if it is not the case, you’ll have to pay for him!

   What if your property is empty? You owe the tax!

   Our tip: After buying a property, register your property with the Town Hall within two months. Take all the official documents with you. Most of the time, your lawyer will do this for you.

   If you forgot it, your local town hall could recoup the amounts due for the last 5 years + penalties… So, now you know!

   The IBI for the apartment in Barcelona is under 0.6% of the “Valor Catastral“: i.e. 360€

    

   

    

   b. State Tax: You are renting it. You are not renting it… Modelo 210 – Form 210

   A. You are renting out your apartment => Quarterly filling, before the 15th of the month following the end of the quarter.

   The State tax for the apartment in Barcelona is 19% of the “Rental Value“: i.e. 3648€ on an annual basis and 912€ on a quarterly basis.

   Our Tip: you have items that could reduce this amount, check with (y)our lawyer.

   B. Your apartment is not rented => Yearly filling

   The State tax for the apartment in Barcelona is under 0.2% of the “Valor Catastral“: i.e. 200€

   Where can you find the Spanish form 210 directly in English?

   Where can you find the official information for filing your Spanish Form 210 in English?

   Have a look at the help guide written in English by the Spanish Authorities.

   Our Tip: Pay attention, if you bought the property with someone else (spouse, kids,…), everybody needs to do one filling for the taxes!

   Our Tip: Take advantage of our network and get your filling done by someone on the ground.

    

   

2. Insurance

   The insurance should be around 0.05% of the price of your property.

   The insurance for the apartment in Barcelona is under 250€.

   Our Tip: Many insurance brokers in Spain speak foreign languages. Ask a quote from our home insurance partner in Spain.

    

   

    

3. Utilities

   If your apartment in Barcelona is empty, you’ll have a few charges just to have accounts open and running:

   +/- 15€ / month for water

   +/- 20€ / month for electricity

   +/- 6€ / month for gas

   For a total of 41€ / month if your apartment in Barcelona is not rented.

   If your apartment in Barcelona is rented, charges may increase up to 150€ / month. With inflation rising since 2021, you should expect those costs to increase even more in the future.

   Our Tip: If your Gas meter needs to be reopened, you’ll have to get a technician to certify that your installation standards is fine. Count about 150€ for this.

    

4. Community Charges

   This charge depends on the property you bought:

   • Is there a lift in the building?
   • Is the property new? Does it need more or less of maintenance?
   • Are many properties empty?
   • Do you have a swimming pool?
   • How often is the property cleaned?

   For your apartment in Barcelona count between 50€ and 100€ per month.

   Our Tip: Ask for the last Assembly documents before buying. Your lawyer will do this in general. You will get a much better picture on those costs and on the costs carried on the property in the past or to be done in the future.

    

5. Charges of your own property

   • Do you have a private garden?
   • Do you have your own private pool?
   • The paintwork needs doing?
   • Do you have a mortgage? Check our paper we wrote on that to find out what is your monthly mortgage payment: What is the cost of your Spanish Mortgage? Your ultimate Mortgage calculator

    

   

   To sum up: 0.8% per year:

   • 0.15% Local tax,
   • 0.05% National tax(not rented ),
   • 0.05% Insurance,
   • 0.1% Utilities (empty),
   • 0.3% Community charges,
   • 0.1% Property charges

    

   

    

   Do you want to be sure of the cost of buying a Spanish property? Read the news we wrote on this. Last but not least another interesting paper is: cost of living in Spain vs any country in the world.

    

    

    

   

   All those information are from reliable sources. We advise you to check those with your fiscal and legal advisor in Spain in order to get all those costs up to date and adjusted to your specific situation. Find your Spanish property lawyer here.

    

   Do you want to start searching immediately?

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   If you don’t know where to buy, this general article on the Spanish Real Estate market could be very useful: Everything you ever wanted to know about the top 20 Spanish real estate markets

    

   

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   This infographic could help you before buying your new property in Spain.

   

   Don’t try to do it alone, you think you will save money, but you will WASTE money