Wiki: Spain & Portugal mortgages
In-depth explanations of non-resident financing, taxes and process. Short definitions live in the Glossary — this is where we go deeper, backed by real, anonymised case studies.
Taxes
IBI — Spanish Property Tax
IBI (Impuesto sobre Bienes Inmuebles) is Spain's local property tax — an annual municipal tax on the cadastral value, charged regardless of the owner's tax residency.
IBI — Spanish Property Tax →Non-Resident Tax Spain (Modelo 210 / IRNR)
Modelo 210 is the tax return for Spain's non-resident income tax (IRNR) — mandatory for every foreign property owner, whether the property is rented out or not.
Non-Resident Tax Spain (Modelo 210 / IRNR) →Mortgage
Non-Resident Mortgage (Hipoteca no residente)
A Hipoteca no residente is a Spanish mortgage for buyers without Spanish tax residency — banks assess foreign income, employment and country of origin more strictly than for residents, which makes financing more demanding, though far from impossible.
Non-Resident Mortgage (Hipoteca no residente) →Spain Mortgage LTV for Non-Residents
The maximum loan-to-value for non-residents in Spain is usually well below the level offered to residents — banks apply it to the lower of the purchase price and the appraised value, so more equity is needed than in a domestic financing.
Spain Mortgage LTV for Non-Residents →Costs
ITP Spain (Property Transfer Tax)
ITP is Spain's transfer tax on the purchase of a resale property — the rate is set by each autonomous region individually, so it can differ substantially depending on where the property is located.
ITP Spain (Property Transfer Tax) →Buying Costs Spain (Gastos de compra)
Gastos de compra are the full set of purchase-related costs on top of the price — tax, notary, land registry, tasación and, where used, a lawyer — and are paid from equity as a rule, not financed by the bank.
Buying Costs Spain (Gastos de compra) →Plusvalia Tax Spain (Plusvalia municipal)
Plusvalía municipal is a local tax on the increase in value of the land, charged on sale or any other transfer of ownership — usually paid by the seller, but still relevant for a buyer who plans to sell the property again in the future.
Plusvalia Tax Spain (Plusvalia municipal) →Non-Residents
NIE Number Spain (Número de Identificación)
The NIE is Spain's tax and identification number for foreigners — without it, virtually no financial or property transaction in Spain is possible, whether purchase, mortgage or bank account.
NIE Number Spain (Número de Identificación) →Financing in Portugal
Non-residents can also buy and finance property in Portugal — with structural parallels to Spain (lower loan-to-value, a dedicated tax number as a prerequisite) but its own tax rules, which have shifted noticeably in recent months.
Financing in Portugal →CPCV — Portugal Preliminary Contract
The CPCV is Portugal's binding preliminary property contract — unlike a non-committal reservation, it already legally obliges both parties to buy and sell respectively, well before the notarial Escritura is signed.
CPCV — Portugal Preliminary Contract →Hipoteca Mixta (Mixed-Rate Mortgage)
The hipoteca mixta combines a fixed rate for the first years with an automatic switch to a variable rate afterwards — usually Euríbor plus a margin — a hybrid common in Spain between purely fixed and purely variable-rate financing.
Hipoteca Mixta (Mixed-Rate Mortgage) →Process
Tasación (Valuation)
The tasación is an independent property valuation carried out by a licensed appraisal firm — Spanish banks require it before any mortgage approval, because it's the tasación value, not the agreed purchase price, that ultimately sets the financing amount.
Tasación (Valuation) →Nota Simple
The nota simple is Spain's official land registry extract from the Registro de la Propiedad — it lists the owner, mortgages and any other charges on a property, and is the single most important check before signing any preliminary contract.
Nota Simple →Spanish Bank Account for Non-Residents
Buying and financing property in Spain generally requires a Spanish bank account — mortgage payments, the purchase price transfer, and running costs like IBI and community fees all flow through it, which is why it's worth sorting out early rather than right before signing.
Spanish Bank Account for Non-Residents →Contrato de arras (Deposit)
The contrato de arras is Spain's reservation and preliminary contract — it typically involves a deposit that is usually forfeited if the buyer withdraws, and often has to be repaid double if the seller withdraws.
Contrato de arras (Deposit) →Escritura Spain (Notarial Deed)
The Escritura pública de compraventa is Spain's notarial deed of sale — signing it in front of the notary is the moment ownership actually transfers, after which it's registered at the land registry to make the change of ownership publicly visible. A Spanish notary (notario) is a public official, not a private lawyer for either side — their role is to verify identity and legality, not to negotiate on your behalf.
Escritura Spain (Notarial Deed) →Buying Property in Spain: the Process
Buying property in Spain follows a clear sequence — getting the NIE and a bank account, sorting out the property and financing, the preliminary contract, valuation and loan approval, the notarial Escritura, land registry entry and tax payment — one that becomes genuinely predictable once you know each step.
Buying Property in Spain: the Process →Real cases (110)
Anonymised case studies complement the wiki articles with real financing cases — historically accurate, never altered after the fact. Full overview: /en/case-reports/.