Case reports · Self-employed & entrepreneurs

Spanish mortgage as a self-employed buyer or company owner

Anonymised examples of financing for the self-employed, freelancers and entrepreneurs.

In short

Does the bank assess the self-employed differently?

Yes, differently and on more paperwork: the bank examines annual accounts and tax assessments over several years and looks for a stable, recurring result. Documented profit counts, not turnover.

Mortgage for the self-employed →

I draw little from my company — a problem?

The most common one here: retained profits are not private income and do not count. If you intend to buy, plan distributions early.

Does planned rental income count?

No — future rental income from the financed property is not used. Existing income from other properties is recognised, often only in part.

How do self-employed buyers finance a property in Spain?

On demonstrated earning power rather than payslips — and with more lead time. Spanish lenders review several completed years and work from the taxed result, not from turnover. Whatever was kept low in the accounts for tax reasons directly reduces the lending capacity here, which particularly affects owner-directors whose drawings and company profits are assessed separately. The customary lending ceiling for non-residents sits at around 70 per cent of the tasación, and fluctuating income tends to produce a discount rather than a refusal. Preparation is what decides it: complete documentation, explained fluctuations and a plausible account of recent years. Anyone who starts assembling papers after signing the private contract loses exactly the time needed to find the right lender. The cases on this page show how differently income types are assessed, from freelancers to owner-directors with fluctuating drawings.

Self-employed: the bank sees your profit, not your turnover

Self-employed buyers and business owners are financed in Spain — routinely, and with no penalty for being self-employed. They fail on something else: which figure the bank accepts as income.

An employee submits three payslips and the case is clear. For a business owner, the Spanish bank examines annual accounts and tax assessments over several years and looks for a stable, recurring result. Not the best year. The reliable one.

  • Turnover — impresses nobody. It appears nowhere in the bank's calculation.
  • Profit — this is the figure that counts. Declared and documented — from at least two sets of annual accounts.
  • What stays in the company — does not count. Retained profits are not the shareholder's private income. Anyone who has deliberately drawn little for years to optimise tax appears before the bank with a low income.

Tax optimisation and creditworthiness pull in opposite directions. That is not a criticism of your accountant — it simply means that if you intend to buy in Spain within two years, distribution planning belongs on the table today.

The debt-service ratio of 30 to 35 per cent of net income applies here too. What is counted is your actual net — the declared profit minus taxes and social-security contributions; that is no different in Germany. And every commitment is added up — business loans, leases, guarantees and your mortgage at home included. And a common error: future rental income from the Spanish property is not counted. Existing rental income is recognised, often only in part.

FAQ

Frequently asked — Self-employed & entrepreneurs

I am self-employed. Does a Spanish bank assess me differently from an employee?
Yes — differently, and on more paperwork. The bank examines annual accounts and tax assessments over several years and looks for a stable, recurring result. What counts is documented profit, not turnover.
I deliberately draw little from my company. Is that a problem?
It is the most common one in this group. Retained profits are not private income and do not count. If you intend to buy, plan distributions early.
Does planned rental income from the Spanish property count?
No. Future rental income from the property being financed is not used in the credit decision. Existing rental income from other properties is recognised, often only in part.
5 case reports

Cases from this theme — by region

Mallorca

Mallorca

Practical case Mallorca: Exclusive villa in Port d'Andratx

Preserving the asset structure instead of using all capital

Mallorca

Practical case Mallorca: Modern apartment in Port d'Andratx

Reaching the holiday property with 40 % equity

Mallorca

Practical case Mallorca: Exclusive finca near Es Trenc

Family wealth deployed strategically for a premium property

Costa Blanca

Costa Blanca

Alicante: city apartment with historic flair and comfort

In city-centre locations in Alicante in particular, a close look at existing properties is worthwhile.

Costa Blanca

Practical case Costa Blanca: Penthouse in Altea

The proceeds from a company sale as a solid basis

Costa Blanca

Practical case Costa Blanca: Villa in Calpe

When bonus payments and variable income are correctly assessed

Algarve

Algarve

Lagos: Financing a villa near Ponta da Piedade for a permanent centre of life

Lagos combines an exceptional coastal landscape with excellent everyday infrastructure.

Algarve

Vilamoura: financing a villa near the golf courses

Even in the upper market segment, complete financing planning pays off.

Algarve

Carvoeiro: Financing a bungalow near the coast for a permanent centre of life

Anyone who wants to live in Portugal over the long term should think about future living needs already at the property purchase.

Gran Canaria

Gran Canaria

Practical case Gran Canaria: Villa in Meloneras

High-quality living with a view of the Atlantic

Gran Canaria

Practical case Gran Canaria: Villa in San Agustín

Deliberately keeping the home in Germany

Canary Islands

the Canary Islands

Practical case Lanzarote: Villa in Costa Teguise

High-quality living with long-term asset planning

Tenerife

Tenerife

Practical case Tenerife: Exclusive villa in Costa Adeje

The dream of year-round life on the Canary Islands

Costa Brava

Costa Brava

Penthouse in Palamós — retiring after the handover

Comfortable living with a view of the marina

Costa Brava

Townhouse in Empuriabrava — self-employed developer

Living permanently by the water with well-considered overall financing

Costa de Valencia

Costa de Valencia

Oliva: Financing a villa in a quiet residential setting for a permanent centre o

Oliva shows that quiet residential locations, good infrastructure and proximity to the sea can be combined excellently.

Costa de Valencia

Benicàssim: Financing a villa near the beach for a permanent centre of life

Benicàssim offers not only attractive beach locations but also quiet residential areas with a high quality of life.

Costa de Valencia

Cullera: Financing a penthouse with a view of the Mediterranean for a permanent

Cullera offers an interesting alternative to the well-known metropolises on the Spanish Mediterranean coast.

Costa del Sol

Costa del Sol

Marbella: Villa financing for a permanent centre of life

For high-quality properties in Marbella too, it is sensible not to consider the purchase price alone.

Costa del Sol

Benahavís: Financing a villa with a panoramic view for a permanent centre of lif

With high-quality properties, additional investment often arises even though the property is already in very good condition.

Costa del Sol

Mijas: Financing an Andalusian country house for life between the coast and the

Not every property with a rural character is automatically a rustic finca.

Madeira

Madeira

Townhouse in Câmara de Lobos — self-employed buyer

Authentic living a short distance from Funchal

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Anonymised individual case, not a binding statement for other projects · Siegfried Perini for the owner Olga Nikushkina · §34i GewO · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank