Getting a mortgage as a self-employed individual in Spain can be a significant challenge, but it's not impossible. According to current data, only 35% of self-employed individuals manage to secure mortgage financing on their first attempt, compared to 65% of salaried employees. However, with proper preparation, it is possible to access good and competitive conditions.
Banks have been relaxing some of the requirements for self-employed individuals, especially for those with a stable income and good savings capacity. In this article, you will find a complete guide with everything you need to know about getting a mortgage as a self-employed person, explaining how a self-employed mortgage works, what documentation is needed, how much loan is granted, and which banks can offer the best conditions for self-employed individuals.
A self-employed mortgage is a bank loan intended for home purchase, which is tailored to the characteristics of those who work independently.
Its main characteristics include stricter requirements, as banks demand more guarantees due to the perceived income instability of this type of worker. Interest rates are usually higher compared to mortgages for salaried employees (between 0.25% to 0.5% more). Additionally, extra documentation is often required, such as income tax returns, activity reports, and, in some cases, guarantors.
The process is similar to that of a traditional mortgage, but with a much more extensive solvency analysis. For this, an income assessment is usually carried out, as banks not only look at the latest tax return but also how these have been over the last 2 to 3 years. Furthermore, an analysis of the sector in which the self-employed person works is conducted, as some activities perceived as more unstable, such as hospitality or construction, may face greater difficulties. Additionally, extra guarantees are required, which is why guarantors or a larger additional contribution are requested.
You might be interested in: how to check my credit score as a self-employed individual.
A minimum of 2 years registered with Social Security is required (although some banks ask for at least 3 years), and a stable income, without significant fluctuations over the last 12 to 24 months, is also requested.
A minimum contribution of approximately 20% to 30% of the property's value is required (compared to 10% to 30% for salaried employees). For example, for a €200,000 house, you would need savings of between €40,000 and €60,000.
The bank usually requires that the monthly payment does not exceed 30% to 35% of your net income, so if you earn €3,000 per month, the maximum accepted payment would be between €900 and €1,050.
It must be recorded that there have been no defaults in recent years, and that credit cards and loans are up to date.
Required Documentation
The last 2 to 3 income tax returns (Modelo 130/131), quarterly income reports (Modelo 303), an updated work history, and exact bank statements from the last 6 to 12 months are required.
Depending on the bank, a debt report (CIRBE), client contracts (if you have recurring clients and income), and a guarantee from another holder (in cases of typically having irregular income) may be required.
You might be interested in: ICO guarantee.
This period will vary depending on the bank. For example, BBVA requires a minimum of 2 years as self-employed, or 3 years for those working in sectors considered high-risk. CaixaBank requires 2 years as self-employed, Santander requires 3 years, Sabadell requires 2 years, and Bankinter requires 2 years as a self-employed worker with stable, verifiable income.
As a self-employed worker, you can typically secure a maximum of 70% to 80% of the appraisal value, unlike the 90% a salaried employee might obtain. For instance, if a house is valued at 250,000 euros, a bank might lend a self-employed individual between 175,000 and 200,000 euros, with a maximum term of up to 30 years, but under much stricter conditions.
In most cases, an opening fee of 0.5% to 2% of the loan is required, for example, 1,500 to 6,000 euros on a 300,000 euro loan. The appraisal costs 300 to 600 euros. Notary and registration fees can range from 1,000 to 2,000 euros, and taxes (ITP/AJD) depend on the autonomous community, ranging from 1.5% to 10% of the total value.
Considering all these expenses, the estimated total cost ranges from 5,000 to 15,000 euros.
You should review your solvency by calculating your debt and savings, compare banks using online simulators or with the help of a mortgage broker. You must also prepare documentation such as income tax returns, bank statements, etc. Additionally, pre-approval is requested, so before looking for a house, you should ensure that a bank will grant you the loan. Finally, you must sign the mortgage after the appraisal and final approval.
Billing regularly and avoiding major fluctuations is ideal.
It's recommended to pay off existing credit cards and loans before applying for a mortgage.
If you have substantial prior savings, the bank will consider the risks significantly reduced.
Hiring an industry professional is ideal as they can help negotiate and secure better terms.
If your income is irregular, a family member can act as a guarantor, which allows the bank to view the loan as a safer option.
You might be interested in: FEIN mortgage and how to interpret it if you are self-employed.
Some banks accept the average of the last 2 to 3 years as monthly income.
Yes, as long as they are legally declared in Spain and supported by the corresponding invoices.
It usually takes between 3 and 8 weeks; the duration will depend on the documentation.
If the variability is very frequent or very high, you might be asked to provide a guarantor or a larger initial deposit.
You can improve your profile by saving more or reducing existing debts, try other banks that might offer more flexible terms, such as Bankinter or BBVA, and consider hiring a mortgage broker, who has the experience and knowledge to secure a mortgage with favorable conditions for their clients.
Yes, in fact, some banks offer special conditions for self-employed individuals in certain sectors, such as doctors, engineers, or IT professionals who work independently.
If you're looking for a simple, secure, and modern way to grow your money, Domoblock is the ideal place to start. With just €200, you can invest in real properties without the hassle of paperwork or large outlays.
The key? We use technology blockchain to transform real estate into digital assets. This means you can invest in fractions and track the progress of your real estate investment from your mobile device.
We have a team of experts who will guide you through the entire process, helping you design a personalized strategy aimed at diversifying and maximizing your returns. Don't let your money stagnate! Start today with Domoblock and make the leap from saver to investor, building a more solid and profitable financial future.
Obtaining a mortgage as a self-employed individual has always been seen as an extremely difficult process. However, this year, it's a much more accessible possibility than ever before, though it still requires thorough preparation, solid documentation, and patience. If you can demonstrate stable income, sufficient savings, and a clean financial history, you can secure competitive and favorable terms.
More flexible banks, such as BBVA, Bankinter, or CaixaBank, are good options, but seeking advice from a professional and reliable mortgage broker can make things easier for you to find the best offer.
If you're ready to buy your home as a self-employed worker, remember what you've learned in this guide, and you'll be one step closer to achieving it.
.png)
Calle Pilar Mateo
Funded
-
-
Target
1.167.964,69€
.png)
.png)
.png)
.png)
.avif)
.avif)
.avif)
