Real estate in Spain

Please pay attention to the following if you are buying property in Spain:

  • Nykredit always recommends that you consult an attorney in Spain when buying real estate in Spain
  • Order the Spanish N.I.E. numbers for yourself and your spouse/co-habitee well ahead of the notary meeting (may take up to two months)
  • Note that loan terms and costs in Spain differ from those in Denmark
  • Loan refinancing is expensive in Spain as already paid stamp duty cannot be transferred between loans. You should thus give careful consideration to which loan types you opt for
  • Loan offers may not be completed until a purchase agreement has been signed and cannot exceed 80% of the purchase price stated in the title document exclusive of Spanish transaction costs. In connection with mortgage equity withdrawal and remortgaging, the loan amount cannot exceed 60% of the property value according to Spanish consumer protection legislation
  • Once a loan offer has been accepted, the loan case will be transferred to Nykredit International Lending in Copenhagen, which will then serve as the point of contact between our Spanish attorney and you and your adviser/attorney
  • The Nykredit loan will be issued one week before the notary meeting if all documents have been received by that time: This means that the following documents must be ready before a loan can be issued:
    -All legal approvals, registrations and permissions relating to the Spanish property must be obtained
    -All N.I.E. numbers (of buyers and sellers and spouses/co-habitants)
    -Spanish fire insurance policy and a minimum insurance cover according to the loan offer and with Nykredit as rightsholder/beneficiary
  • If you are unable to participate in the notary meeting in Spain, issue a power of attorney authorising your adviser/attorney in Spain to act on your behalf. Remember to give permission to buy property, raise loans and mortgage property on your behalf
  • Nykredit's attorney will withhold an amount for the payment of mortgage registration charges
  • Nykredit's attorney will withhold an amount for the payment of Spanish transaction costs of about 10-12% of the purchase price stated in the title document
  • Nykredit's attorney will withhold an additional 3% of the purchase price stated in the title document if the seller is not a resident in Spain, but as it is a cost to be paid by the seller, the final purchase price will also be reduced by 3%
  • Nykredit's attorney withholds funds for the payment of costs in case of prior mortgages over the property. These will, however, be repaid if the seller cancels the mortgage
  • The loan process lasts about 6-8 weeks from the beginning to the end