Those buying and financing property in Spain with a mortgage have enjoyed significant cost savings since the Mortgage Law (Ley 5/2019) came into force. Since June 2019, banks are legally obliged to bear most of the mortgage-related costs, including notary fees, registration fees and the stamp duty (AJD). As a buyer, you will only pay the valuation fee and any opening commission. At least in theory.
In this article, we list the exact cost breakdown so you know exactly what to expect financially when taking out a Spanish mortgage.
Valuation fees (Tasación)
On behalf of: The buyer (applicant).
Before a Spanish bank makes a mortgage offer, an official valuation is mandatory. This valuation must be carried out by an independent valuer appointed by the Banco de España licensed valuer (tasador homologado).
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Cost indication: Expect to pay between €300 and €600, depending on the value of the property and the valuation company's rate.
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Important: You are free to choose your own appraiser. The bank must accept any certified appraisal, provided it is not older than 6 months.
Expert Tip: "Get the appraisal done only when you are sure about the property. This is because the appraisal value determines the maximum amount you can borrow (usually 60-70% of the appraised value for non-residents)."
Notary fees and Land Registry registration
On behalf of: The Bank.
Since the introduction of the new mortgage law, the cost of preparing the mortgage deed entirely for the bank's account. This applies to both the notary's fee and the registration of the mortgage in the property register (Registro de la Propiedad).
Note the distinction:
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Mortgage deed: Costs for the bank.
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Deed of sale (Escritura de Compraventa): Costs for the copper.
Stamp duties (AJD - Actos Jurídicos Documentados)
On behalf of: The Bank.
The AJD is a tax on legal documents that varies by autonomous region (between 0.75% and 1.5% of mortgage liability). Previously, this was a heavy cost for the buyer, but after a Supreme Court ruling and subsequent legislation, the bank is now the only taxpayer for the mortgage deed.
Calculation example savings:
Suppose you take out a mortgage of €200,000. The 'mortgage liability' (loan + interest + fees) is often around 160% of the loan, i.e. €320,000.
In the Valencia region (rate 1.5%), this would amount to €4,800.
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Previously: To be paid by you.
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Now: Fully paid for by the bank.
Administration fee (Gestoría)
On behalf of: The Bank.
The bank engages an administration firm (gestoría) to handle the administrative handling of the mortgage (registration and tax payment). The law explicitly states that the bank should bear these costs.
In practice, banks try to recover the above costs under the heading of other 'administrative costs'.
Opening committee (Comisión de Apertura)
On behalf of: The buyer (if any).
Banks are allowed to charge a one-off opening fee when taking out the loan. However, the law requires strict transparency:
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It should include all costs for study, processing and management.
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Other commissions (such as 'study costs') are prohibited; everything must fall under this one heading.
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The rate usually varies between 0% and 1.5% of the loan amount.
Compulsory Insurance & Bonuses
On behalf of: The buyer.
Banks may not require you to take out their specific insurance to cover the loan get, but they may give interest rate discounts (bonuses) if you purchase their products.
You will often see a construction where the interest rate drops if you:
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A fire insurance (superficies).
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A life insurance (debt balance insurance).
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Installing an alarm system.
Experience: Combining products (vinculaciones) can increase the interest rate by as much as 0.50% to 1.00% reduce. However, it is essential to compare bank insurance premiums with market prices. Sometimes, more expensive insurance at the bank is more expensive than the interest rate discount it provides.
Severance payment (Early redemption)
Early mortgage repayment fees are capped by law to protect consumers.
At variable interest rates:
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Max 0.15% in the first 5 years.
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Max 0.25% in the first 3 years.
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0% after this period.
At a fixed interest rate:
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Max 2.00% in the first 10 years.
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Max. 1.50% after the first 10 years.
Summary overview of cost allocation
| Cost item | Who pays? |
| Valuation (Tasación) | Copper |
| Notary (mortgage deed) | Bank |
| Register (Mortgage) | Bank |
| Stamp duty (AJD) | Bank |
| Gestoría (Admin) | Bank |
| Opening committee | Buyer (if applicable) |
| Copy of deed (for yourself) | Copper |
Frequently asked questions about mortgages in Spain (FAQ)
1. Does the Spanish mortgage law also apply to non-residents (Belgians and Dutch)?
Yes, the 2019 law (Ley 5/2019) does not differentiate on the basis of nationality. If you buy property in Spain and take out a mortgage with a Spanish bank there, you will enjoy the same consumer protection and cost sharing as a Spanish resident.
2. Can I borrow 100% of the purchase price in Spain?
No, this is very unusual for non-residents. Spanish banks usually finance a maximum of 60% to 70% of the lowest value (appraisal value or purchase price). So you should have a minimum of 30-40% equity, plus around 10-14% for the purchase cost (Cost of Buyer).
3. Can a bank require me to take out life insurance?
The bank may require life insurance as a condition of the loan, but they may not force you to take it from their insurance company. You may provide an alternative policy with equal coverage. However, you will often lose the interest discount (bonification) associated with the bank policy.
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.
