Glossary: Spain & Portugal mortgages
The key terms around property financing in Spain and Portugal for non-residents — explained neutrally. Tax questions are answered by your tax adviser or gestor.
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Non-residents
NIE Number Spain (Número de Identificación de Extranjero)
The NIE (Número de Identificación de Extranjero) is the Spanish tax and…
Without an NIE almost nothing works in Spain – applying for it early avoids…
Financing in Portugal
Non-residents can also buy and finance property in Portugal. The prerequisite…
Knowing the parallels and differences to Spain lets you decide between the…
CPCV (Contrato-Promessa de Compra e Venda)
The CPCV is the binding Portuguese preliminary contract when buying property…
Once you sign the CPCV you are bound — financing should already be in place…
Hipoteca mixta
The hipoteca mixta is a Spanish financing form with a fixed rate for the…
Planning ahead for the switch after the fixed phase avoids a surprise on the…
Mortgage
Non-Resident Mortgage Spain (Hipoteca no residente)
A Hipoteca no residente is a Spanish property loan for buyers without tax…
With the right choice of bank and a well-prepared file, a lender can be found…
Spain Mortgage LTV for Non-Residents
The maximum loan-to-value (LTV) for non-residents in Spain is usually…
Realistic LTV expectations stop the search from failing at the financing…
Seguro de hogar (buildings insurance)
The seguro de hogar is the damage policy on the mortgaged property. The bank…
Knowing this, you bring your own policy instead of paying the bank's for…
Euribor (Euríbor hipotecario)
The Euribor is the reference rate for variable mortgages. In Spain it is not…
Knowing the reference month in your own contract, you can work out the next…
Costs
Property Transfer Tax Spain (ITP)
The ITP (Impuesto sobre Transmisiones Patrimoniales) is the Spanish transfer…
The ITP is often the single largest cost item – budgeting for it early…
Buying Costs Spain (Gastos de compra)
The Gastos de compra are the total transaction costs in addition to the…
Knowing the gastos lets you calculate the real capital requirement, not just…
Plusvalia Tax Spain (Plusvalia municipal)
The Plusvalía municipal is a municipal tax on the increase in value of the…
Knowing the plusvalía lets you plan a later sale realistically.
Taxes
Property Tax Spain (IBI)
The IBI (Impuesto sobre Bienes Inmuebles) is the annual Spanish property tax.…
Ongoing costs such as the IBI belong in every honest profitability or budget…
Non-Resident Tax Spain (Modelo 210 / IRNR)
The Modelo 210 is the Spanish tax return for non-residents (IRNR – Impuesto…
Knowing the IRNR obligation early avoids omissions and lets you plan the…
Steps & process
Tasación (Valuation)
The Tasación is the property valuation prepared by an approved company.…
Understanding the tasación shows why it is the appraised value, not the…
Nota Simple
The Nota Simple is the official land registry extract from the Registro de la…
Checking the Nota Simple protects against unpleasant surprises such as hidden…
Spanish Bank Account for Non-Residents
A Spanish bank account is usually required for purchase and mortgage in Spain…
Sorted out early, the account is one fewer item to worry about in the process.
Contrato de arras
The Contrato de arras is the Spanish reservation/preliminary contract. A…
A well-drafted arras contract protects the deposit if, against expectations…
Escritura
The Escritura pública de compraventa is the notarial deed of sale in Spain.…
Clarity about the escritura removes the worry of having to travel in person…
Buying Property in Spain: the Process
The typical purchase process in Spain: obtain NIE and account, clarify the…
A clear roadmap makes a purchase abroad plannable rather than confusing.
Oferta vinculante (FEIN)
The FEIN is the European standardised information sheet and, in Spain, the…
Knowing this, you sign no private contract and pay no deposit on the strength…
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