Mortgage

For those who intend to invest in real estate in Tenerife or those who have already chosen their house or apartment in Tenerife, GoldKey Tenerife offers the possibility of obtaining a loan for your purchase in one of the banks in Spain, which has branches in the Canary Islands, on the island of Tenerife, and providing the most convenient financing conditions. Our company provides full legal support for your purchase of property in Tenerife and, if necessary, the subsequent maintenance of the property you purchased.

Mortgages in Spain

Today, mortgage in Spain is the easiest and most profitable among European countries. In addition, in recent years, mortgage lending conditions have become more liberal in some aspects. Usually a mortgage loan in Spain is issued in installments up to 35 years. For persons who are not citizens or tax residents of the country and who want to buy real estate in Spain, the size of the mortgage today can be 50-70% of the declared value of the acquired real estate. The rate for mortgages is lower than for other loans, 2 – 3.5% per annum, depending on the European refinancing rate. The repayment of interest on the mortgage and part of the equity capital usually occurs on a monthly basis from the buyer’s bank account. Therefore, it is necessary to control the availability of a sufficient amount of funds in your account with a Spanish bank.

To obtain a mortgage when buying real estate in Spain, you need only a few documents:

For individuals
Copy of a passport with a sufficient validity period
Work contract or official certificate from the place of work indicating the position, duration of work, salary.
Certificate of registration with the tax authority of an individual at the place of residence on the territory of the Russian Federation
Personal income tax certificate-2 for the last 2 years
Bank account movements in the last 6 months
Certificate of ownership (if any) with a passport for the apartment with an assessment of this property.
Official reference about your credit history
For legal entities
Business identification number
Enterprise charter
Statement of income and expenses for the period from January 1 of the current year to the date of submission of documents for the mortgage
Balance sheet at the time of purchase (form No. 1 according to OKUD)
Bank account movements for the last 6 months (with a bank seal)
Certificate of taxes paid by the company (at least some)
Note: all of the above official documents must be translated into Spanish, notarized and apostilled or certified by the Spanish embassy.

Documents are provided in Russian and Spanish. The presence of originals and notarized translations is required. Consideration by the bank of the issue of granting you a loan lasts up to 90 days. After confirming the provision of a mortgage loan to you, the process of registration of the transaction begins. At the time of signing the transaction with a notary, a bank representative hands over the required amount to the seller. Then, the buyer pays the bank the agreed monthly amount of the loan repayment, which can be automatically withdrawn from your bank account, according to your order. If you decide to repay the loan earlier than the agreed term, you must pay the bank up to 1% of the amount of the early repayment. The payment of the entire loan amount and the completion of the mortgage is formalized by a notary deed and recorded in the Property Register. The fact of using the mortgage loan is recorded in the purchase and sale agreement (Escritura). A mortgage loan is issued for the purchase of real estate in Spain. At the same time, the real estate object is mortgaged and is a guarantee of loan repayment. The fact of a pledge of property is reflected in the Register of Property (Registro de Propiedad). If you wish, you can sell your property without completing your mortgage payments, i.e. together with the mortgage.

Taxes and costs of purchasing real estate in the Canary Islands (Spain)

VAT (IGIC) – 5% of the cost when purchasing a new home
Or

Transfer tax (ITP – Impuestos de Transmisiones Patrimoniales y actos jurídicos) – 6.5% of the value when buying a second home.
Notary fees – 0.5-0.75% of the purchase price
Registration costs in the Register of Owners – 0.75% of the cost of housing
Document processing costs (Gestoría) – 0.5% -1% of the cost of housing
Verification of an entry in the Property Register – 10 euros
The cost of real estate bank appraisal – 200 – 300 euros
Bank commission for opening a mortgage – 1.5 – 2% of the loan amount
Property and life insurance is compulsory.
Up to 11% – with a mortgage

Up to 9% – without a mortgage