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Romina Ibiza Villas

Mortgage advices for buying a property in Ibiza

Buying a property in Ibiza comes with some challenges like language barriers and dealing with an unfamiliar legal system.
You will probably also need a mortgage to assist you when buying a property in Ibiza and navigating through the mortgage system without some help can be tricky.

Here’s what you need to know to apply for a mortgage in Ibiza:

The Spanish mortgage market is actually very competitive. The banks are still careful about the non-resident clients they will lend to. Generally speaking, you need to have a deposit amount of minimum 30-40% of the purchase price of your dream Ibiza property, plus keep in mind that you need to have further funds to cover the taxes and expenses involved in the purchase.

Mortgages are available through Spanish banks for non-residents for periods of between 5 and 25 years. If you are a Spanish resident then you can get a mortgage for 30 years.

Before even going to the bank, you need to make sure to have all the necessary documents in order. These involve your last three months pay slips and tax declarations. If you are self employed you then need the most recent three years of accounts plus an official tax statement.

Overall there are some advantages with regard to applying for a mortgage in Ibiza, as in general the Spanish banks are much more willing to lend now than before. Furthermore, there are lower interest rates and it’s easier to get out of agreements that aren’t working.

In theory, it’s possible to get a mortgage for up to 70% of the surveyed value of the property, although mortgages of 50% and 60% are more normal. If you choose to have a mortgage of 50% then the costs involved in purchasing the property can be added to the amount of the mortgage.