Bank, Money Transfer & Mortgage
We open a bank account for you, or your company, in Barcelona.
We advise on local banks, rates and document requirements. We work with Mortgage Direct, an expert in finding the best terms available. Contact Mortgage Direct Here.
Bank to bank wire transfers are very expensive. We recommend Smart Currency Exchange, a licensed broker that can save you money. For a free quote please click here: Get a Free Quote
A Client’s True Mortgage Story
Tom found a flat in Barcelona. He applied for a mortgage and the bank gave their ‘preliminary approval’ but not the interest rate or other terms. Under pressure from the real estate agent, Tom paid a 10% deposit for the flat. Finally, two days before closing, the bank told Tom the interest rate and other terms.
How to Get a Mortgage in Spain
We recommend Mortgage Direct. They serve as an intermediary between you and the Spanish bank. They search the market and negotiate for the best terms. Unlike other intermediaries, they are fully independent from the bank. They also provide excellent customer service. See below for the standard document requirements and mortgage terms. Contact Mortgage Direct Here
Below is a list of common documents banks require to get a mortgage. The list varies depending on the bank.
2) Spanish NIE
3) An assessment of the property
Proof of Income
1) Recent employment pay-check receipts
2) Income tax return(s)
3) Bank statements showing savings
4) Letter from employer
5) If self-employed, company business records establishing income
6) Proof of pension, investment and other income
1) Proof of all debts including loans and mortgages
2) Extraordinary Expenses
Below are standard terms and costs for a mortgage in Barcelona. Some terms are negotiable.
1) Amount. From 50% to 70% of the purchase price for Spanish non-residents and up to 80% for Spanish residents.
2) Interest Rate. This can be variable (euribor + %) or fixed. The fixed rates normally range from 3% to 5%.
3) Length of loan. Normally 30 years is the maximum.
4) Opening Fee. This varies widely among bans, 1500€ is normal.
5) Property Assessment. The bank will hire an assessor to assess the property before it approves the mortgage. Cost is 300€ to 800€, depending on the size of the property.
6) Property Insurance. The banks require that you buy the insurance through them and the cost varies.
7) Life Insurance. Some banks require that you buy this for the length of the loan. Cost varies.
How to Transfer Money to Spain
Spain Advisors recommends Smart Currency Exchange of London. Smart offers excellent customer service and has transferred billions worth of currency from and to banks all over the world. They specialize in overseas property purchases and charge no commission. Several of our clients have used them. Click below to open an account and get a quote for a transfer.
How Does Smart Currency Exchange Save You Money
An Exchange Broker
Very Important: Never transfer money from your home-country bank to your Spanish bank. You’ll get a terrible exchange rate and fewer euros for your transfer. Smart transfers a lot of money at one time. Thus, they can use a low exchange rate and still earn themselves a profit. Banks do a one-time transfer and use a high exchange rate, so you get fewer euros for your transfer.
Spain’s ‘Origin of Funds’ Law
Spain requires a property buyer to prove the ‘origin’ of all funds used to buy the property. The ‘origin of funds’ is normally your home-country bank account. However, if your country is considered a ‘fiscal haven’, the bank may require documents showing how you earned the money. Bank requirements in this respect vary greatly. An exchange broker can be a big help.
How to Open a Bank Account in Spain
Frequently Asked Questions (FAQ’s)
For example, they try to eliminate the bank’s opening fee. Other brokers won’t because they’re paid a % of it.
Finally, be careful where the broker sends you. If they refer you to a bank located outside of the town or city where you buy the property, it can cause problems as each region in Spain has their own rules and procedure. In Barcelona it’s very difficult to work with an out-of-town branch (we speak from experience).
Would you like some help?
Getting information from banks, especially about their fees, is not easy. You usually get the fee after the service has been provided. We’ve been working with Barcelona banks and mortgage brokers a long time. We can get you the information you need to make decisions. For advice, email or call. Thanks again for visiting our site.