Mortgage Approval Requirements in Spain 2026

Getting approved for a mortgage in Spain can seem like an overwhelming process, especially if it’s your first time. After helping hundreds of buyers over more than 15 years in Barcelona’s real estate market, I’ve seen practically everything: surprising approvals, unexpected rejections, and above all, many avoidable mistakes that delay or prevent financing.

In this guide, I’m going to tell you exactly what banks look at in 2026 to grant a mortgage, what documentation you need according to your employment situation, what the most common mistakes are that lead to rejection, and how you can prepare your profile to maximize your chances of approval. No beating around the bush or unnecessary jargon.

The Reality of the Mortgage Market in 2026

The Spanish mortgage market has undergone significant changes in recent years. Interest rates have stabilized after the ECB increases, and banks have adjusted their risk criteria. In 2026, the landscape looks like this:

• Euribor: Currently between 2.5% and 3%, after progressive decreases from the 2024 highs
• Fixed rates: Between 2.85% and 3.50% depending on applicant profile
• Variable rates: Euribor + spread of 0.65% to 1.10%
• Average mortgage term: 26 years (historic record in Spain)
• Maximum age at maturity: 75 years in most institutions

Banks remain conservative, but competition among institutions has improved conditions for solvent profiles. The key is understanding exactly what they’re looking for and how to present your application in the most favorable way.

The 5 Pillars Banks Evaluate

When you submit a mortgage application, the bank analyzes your profile from five fundamental perspectives. None is optional: failing in just one can mean rejection of your application.

1. Economic Capacity: The Debt-to-Income Ratio

This is, without a doubt, the most important criterion. The bank wants to ensure you can pay the mortgage payment without compromising your financial stability.

The 35% rule: Your monthly mortgage payment, plus any other debts you have (personal loans, credit cards, financing), cannot exceed 35% of your net monthly income.

Practical example:

If you earn 2,500 euros net per month:

• Maximum total monthly debt: 875 euros (35%)
• If you already pay 150 euros for a car loan: You can only allocate 725 euros to the mortgage
• With a payment of 725 euros at 3% over 25 years: You could finance approximately 155,000 euros

What the ratio includes:

• Mortgage payment (including amortization insurance if applicable)
• Current personal loans
• Vehicle financing
• Minimum credit card payments
• Guarantees you have signed for third parties
• Other recurring financial commitments

2. Job Stability: Minimum 2 Years of Seniority

Banks need certainty that your income will be maintained over time. That’s why job stability is fundamental.

For salaried employees:

• Permanent contract: Minimum 6-12 months of seniority (ideal: 2+ years)
• Temporary contract: Minimum 2 continuous years in the same company or sector
• Civil servants: Practically guaranteed approval if they meet the ratio

For self-employed (autonomos):

• Minimum 2-3 years of continuous activity
• Stable or growing income demonstrated
• No unexplained periods of inactivity

Situations that complicate approval:

• Periods of unemployment in the last 2 years
• Frequent company changes (job hopping)
• Seasonal jobs without complementary income
• Recent significant income reduction

3. Savings and Down Payment: The 20% + 10% Rule

This is one of the main obstacles for young buyers. Banks finance a maximum of 80% of the property’s appraised value (the lower of purchase price and appraisal).

Breakdown of what you need:

Concept	Percentage	For a 300,000 euro property
Down payment (not financed)	20%	60,000 euros
ITP/VAT (Catalonia)	10-11%	30,000-33,000 euros
Notary	0.2-0.4%	600-1,200 euros
Land Registry	0.1-0.3%	300-900 euros
Administrative fees	0.1%	300-500 euros
Appraisal	Fixed	250-600 euros
TOTAL NEEDED	~30-32%	~91,500-95,200 euros

Detailed purchase costs in Catalonia 2026:

For resale property:

• ITP (Impuesto de Transmisiones Patrimoniales - Property Transfer Tax): 10% of the deed price (11% if it exceeds 600,000 euros)
• Notary: 600-1,200 euros depending on the deed
• Land Registry: 400-800 euros
• Administrative fees: 300-500 euros
• Appraisal: 250-600 euros depending on the institution

For new construction:

• VAT: 10% of the price
• AJD (Actos Juridicos Documentados - Stamp Duty) in Catalonia: 1.5%
• Notary, Registry and Administrative fees: Similar to resale

4. Credit History: ASNEF, RAI and CIRBE

The bank will check your history in the default registries and in CIRBE (Central de Informacion de Riesgos del Banco de Espana - Bank of Spain’s Risk Information Center).

Registries they check:

• ASNEF: Registry of defaults with telecommunications companies, financial institutions, etc.
• RAI: Registro de Aceptaciones Impagadas (Registry of Unpaid Acceptances - mainly commercial bills)
• CIRBE (Central de Información de Riesgos del Banco de España): Consolidated information of all your debts with financial institutions

How to check your situation:

• ASNEF: Request a free report at equifax.es
• RAI: Check at the Registry of Unpaid Acceptances
• CIRBE: Request your free report from the Bank of Spain (serviciosenlinea.bde.es)

What they look for in your history:

• Absence of current defaults
• Responsible pattern of debt management
• No previous mortgage foreclosure proceedings
• Consistency between declared income and lifestyle

5. Property Value: The Appraisal

The bank will never lend you money based on the price you’ve agreed with the seller. They will send an accredited appraiser who will determine the real market value of the property.

The bank will finance 80% of the lower value between:

• Agreed purchase price
• Appraisal value

Example:

• Agreed price: 300,000 euros
• Appraisal: 280,000 euros
• Maximum financing: 80% of 280,000 euros = 224,000 euros
• Down payment needed: 300,000 euros - 224,000 euros = 76,000 euros (plus expenses)

Factors that negatively affect the appraisal:

• Property with encumbrances or urban planning limitations
• Poor state of conservation
• Location in a building with structural deficiencies
• Lack of habitability certificate
• Area not matching the registry

Complete Documentation According to Your Situation

Document preparation is key. An incomplete or poorly presented file delays the process by weeks and generates distrust in the risk analyst.

Documentation for Employees (Salaried Workers)

Identity documents:

• Valid DNI/NIE (both sides)
• Family book (if applicable)
• Certificate of registration (some banks)

Employment documents:

• Last 3 payslips
• Current employment contract
• Updated work history (last 6 months)
• Income tax returns (IRPF) for the last 2 years
• Company certificate (some banks request it)

Financial documents:

• Bank statements for the last 6 months (main account)
• Proof of other income if any (rentals, dividends)
• Declaration of assets and debts (bank form)
• Latest receipts of current loans

Property documents:

• Updated nota simple (simple note) from the Land Registry
• Deposit contract or reservation
• Cadastral reference
• Habitability certificate (if available)
• Energy efficiency certificate

Documentation for Self-Employed (Autonomos)

Self-employed individuals need to provide more documentation to demonstrate income stability.

In addition to identity documents:

Tax documents:

• Quarterly VAT returns (form 303) - last 2 years
• Annual VAT summary (form 390) - last 2 years
• IRPF returns (form 130 or 131) - last 2 years
• Corporate Tax (form 200) if you’re a limited company (SL)
• Income tax returns (IRPF) last 2 years

Social Security documents:

• Self-employed contribution receipts for the last 12 months
• Work history report
• Certificate of being current with Social Security

Accounting documents:

• Annual accounts for the last 2-3 years (if you’re a limited company)
• Updated balance sheet
• Profit and loss statement
• Income and expense ledger (if you’re a sole proprietor)

Additional Documentation for Special Cases

If you’re buying with a partner or co-owner:

• All documentation from both applicants
• Certificate of cohabitation (common-law partners)
• Prenuptial agreements if they exist

If you have other income:

• Rental contracts and declaration thereof
• Dividend certificates
• Pension documentation

The Approval Process: 5 Phases in 30-45 Days

Understanding the process will help you anticipate timing and prepare for each phase.

Phase 1: Pre-approval or Feasibility Study (3-5 days)

This first phase is crucial and often underestimated. The bank performs a preliminary analysis to determine if your profile is viable.

What happens:

• Consultation of default registries (ASNEF, RAI)
• CIRBE consultation
• Preliminary analysis of debt-to-income ratio
• Basic verification of documentation

What you get:

• Guidance on maximum financeable amount
• Approximate conditions (interest rate, term)
• List of pending documentation

Phase 2: Submission of Complete File (1-2 weeks)

Once the property is identified, you submit the complete file with all documentation.

What happens:

• Thorough review of all documentation
• Data verification with official sources
• Property analysis (nota simple, encumbrances)
• Requests for clarifications if necessary

Keys to accelerate:

• Submit all documentation at once
• Respond to clarification requests immediately
• Maintain regular contact with your bank manager

Phase 3: Property Appraisal (1-2 weeks)

The bank orders the appraisal through an accredited company.

What happens:

• Appraiser visits the property
• Comparative market analysis
• Verification of area, condition, encumbrances
• Issuance of appraisal report

Cost: 250-600 euros depending on institution and property type

Possible problems:

• Appraisal lower than purchase price
• Detected urban planning deficiencies
• Area discrepancies with the registry
• Need for second appraisal

Phase 4: Approval by the Risk Committee (3-7 days)

With a favorable appraisal, the file goes to the risk committee for final approval.

What happens:

• Final analysis of risk profile
• Verification of compliance with internal policies
• Approval/denial decision
• Issuance of binding offer (FEIN and FiAE)

The FEIN (Ficha Europea de Información Normalizada - European Standardized Information Sheet):

• Mandatory document with all conditions
• Valid for minimum 10 days
• You must sign it to continue
• You can compare with other offers

Phase 5: Signing at the Notary (1-2 weeks)

The final phase where the mortgage and purchase are formalized.

Preparation:

• Choice of notary (this is the buyer’s right)
• Review of drafts by the notary
• Sending documentation to the notary’s office
• Coordination with seller and parties

On signing day:

• Signing of the purchase deed
• Signing of the mortgage deed
• Key handover
• Settlement of expenses

Typical total timelines:

• Fast process: 30-35 days
• Normal process: 45-60 days
• Process with complications: 60-90 days

Special Cases: Self-Employed, Temporary Workers and Expats

Mortgages for Self-Employed (Autonomos)

Self-employed individuals can get a mortgage, but they must prepare better and generally accept somewhat more demanding conditions.

Specific requirements:

• Minimum 2-3 years of activity (preferably 3)
• Documented stable or growing income
• No unexplained periods of inactivity
• Current with Social Security and Tax Office

Adjustments banks apply:

• More conservative debt-to-income ratio (30-33%)
• 20-30% discount on declared income
• Possible requirement for larger down payment (25-30%)
• Slightly higher interest rates (+0.15-0.30%)

Mortgages with Temporary Contracts

Having a temporary contract doesn’t automatically disqualify you, but you need to compensate with other factors.

Minimum requirements:

• 2+ continuous years in the same company or sector
• Consistent history of renewals
• Sufficient income with safety margin
• Preferably in a sector with stable demand

Factors that help:

• Apply jointly with a co-owner who has a permanent contract
• Provide a larger down payment (25-30%)
• Demonstrate additional assets or savings
• Guarantee from a solvent family member (last resort)

Mortgages for Expats and Non-Residents

If you’re not a tax resident in Spain, conditions are more restrictive but financing is possible.

Typical conditions for non-residents:

• Maximum financing: 60-70% of appraisal value
• Interest rates: +0.5-1% compared to residents
• More documentation required
• Longer process (60-90 days)

Specific documentation:

• Tax residence certificate from country of origin
• Tax returns from country of residence
• Bank statements from foreign accounts
• Employment contract or income documentation translated

Most Common Rejection Reasons (and How to Avoid Them)

Knowing the most frequent rejection reasons will help you avoid or correct them before applying.

1. Excessive Debt-to-Income Ratio

The problem: Your current debts plus the new mortgage would exceed 35% of your income.

Solution:

• Cancel small loans before applying
• Reduce limits on unused credit cards
• If you have loans with little balance remaining, consider paying them off
• Increase the down payment to reduce the amount to finance

2. Insufficient Job Seniority

The problem: You’ve been at your current job or self-employed for less than 2 years.

Solution:

• Wait to reach the minimum time if possible
• Present documentation of previous jobs in the same sector
• Request a letter from your company indicating continuity prospects
• Consider applying with a more stable co-owner

3. History of Defaults

The problem: You appear in default registries (ASNEF, RAI).

Solution:

• Pay off any outstanding debt immediately
• Request a cancellation letter from the creditor
• Wait 30 days after cancellation before applying
• Keep payment receipts

4. Appraisal Lower Than Price

The problem: The property is appraised below the agreed price, reducing available financing.

Solution:

• Negotiate the purchase price down
• Provide more down payment if you have the capacity
• Request a second appraisal (at additional cost)
• Consider whether the agreed price was excessive

5. Undeclared or Insufficient Income

The problem: Your official income doesn’t justify the requested amount.

Solution:

• Declare all your income correctly
• If there’s undeclared income, regularize your tax situation
• Consider requesting a lower amount
• Add a co-owner with additional income

6. Incomplete or Inconsistent Documentation

The problem: Documents are missing or there are discrepancies between them.

Solution:

• Review all documentation before submitting
• Make sure names and data match on all documents
• Submit updated documents (maximum 3 months old)
• Prepare explanations for any discrepancy

How to Improve Your Applicant Profile

If your current situation isn’t optimal, these are the actions you can take to improve your profile before applying.

Short-Term Actions (1-3 months)

1. Clean your credit history:

• Check ASNEF, RAI and CIRBE
• Pay off any outstanding defaults
• Request cancellation letter

2. Reduce your debt level:

• Cancel small loans
• Reduce limits on unused cards
• Avoid new financing

3. Organize your documentation:

• Gather all necessary documents
• Make sure they’re up to date
• Prepare explanations for any special situations

Medium-Term Actions (3-12 months)

1. Increase your savings:

• Establish a monthly savings plan
• Consider temporarily reducing expenses
• Use bonus payments to save

2. Improve your job stability:

• If you have a temporary contract, negotiate conversion to permanent
• Avoid unnecessary job changes
• Accumulate seniority in your current position

3. Increase your income:

• Consider requesting a salary increase
• Explore additional income sources
• If you’re self-employed, work on increasing revenue

Long-Term Actions (1-2 years)

1. Build a positive credit history:

• Use a credit card responsibly
• Always pay on time
• Maintain low utilization (less than 30% of limit)

2. Save for a larger down payment:

• Goal: 25-30% of the property value
• A larger down payment gives you negotiating power
• Reduces the amount to finance and improves conditions

Reference Tables: Required Income and Savings

Minimum Income According to Mortgage Amount

Calculated at 35% debt-to-income ratio, 3% fixed rate, 25-year term:

Mortgage Amount	Approx. Monthly Payment	Minimum Net Income
100,000 euros	474 euros	1,355 euros/month
150,000 euros	711 euros	2,030 euros/month
200,000 euros	948 euros	2,710 euros/month
250,000 euros	1,185 euros	3,385 euros/month
300,000 euros	1,422 euros	4,065 euros/month
350,000 euros	1,660 euros	4,745 euros/month
400,000 euros	1,897 euros	5,420 euros/month

Required Savings According to Property Price

Calculated for Catalonia (ITP 10%), 80% financing:

Property Price	Down Payment (20%)	Expenses (~10-12%)	Total Needed
150,000 euros	30,000 euros	16,500 euros	46,500 euros
200,000 euros	40,000 euros	22,000 euros	62,000 euros
250,000 euros	50,000 euros	27,500 euros	77,500 euros
300,000 euros	60,000 euros	33,000 euros	93,000 euros
350,000 euros	70,000 euros	38,500 euros	108,500 euros
400,000 euros	80,000 euros	44,000 euros	124,000 euros
500,000 euros	100,000 euros	55,000 euros	155,000 euros

Available Aid and Subsidies in 2026

ICO Guarantee for First Home 2026

The ICO Guarantee (Aval ICO) program continues in 2026, expanding financing possibilities for young people and families.

Main features:

• Coverage: Up to 20% of the property value (25% for families with minors)
• Beneficiaries: Under 35 years old or families with dependent minors
• Income limit: 4.5 times the IPREM = 37,800 euros/year (individual) or 75,600 euros (couple)
• Maximum property price: Variable depending on municipality (check updated limits)
• Valid until: December 31, 2026

Fundamental requirement:

• Must be first home ownership
• Not having owned a property in the last 5 years
• Property must be primary residence

Practical example with ICO Guarantee:

200,000 euro property, buyer under 35 years old:

• Without ICO Guarantee: You need 62,000 euros (down payment + expenses)
• With ICO Guarantee: You need 22,000 euros (expenses only)
• Savings on down payment: 40,000 euros

How to apply:

1. Verify that you meet requirements on the ICO portal
2. Apply for a mortgage at an institution participating in the program
3. The bank processes the guarantee as part of the process
4. The guarantee has a cost (0.5-1% annual commission on the guaranteed amount)

Tax Deductions for Housing

In Catalonia 2026:

• Regional deduction for primary residence rental (under certain requirements)
• ITP discount for large families (up to 5%)
• Possible deductions for energy rehabilitation

At national level:

• The primary residence deduction was eliminated in 2013
• Only those who bought before that date retain the right
• Deductions for energy efficiency works (temporary)

Generalitat Youth Housing Program

In addition to the ICO Guarantee, the Generalitat de Catalunya offers complementary programs:

• Rental assistance for young people
• Youth housing bank in some municipalities
• Rent-to-own programs

Frequently Asked Questions (FAQ)

About Basic Requirements

Can I apply for a mortgage if I have a car loan?

Yes, but the monthly car payment is added to your debt-to-income ratio. If the car payment is 300 euros and you earn 2,500 euros net, you only have 575 euros margin for a mortgage (35% of 2,500 euros = 875 euros - 300 euros = 575 euros).

How long does it take for a default to disappear from ASNEF?

The default is removed when you pay the debt and the creditor reports it. By law, it must be removed within a maximum of 30 days after payment. Always keep the payment receipt and cancellation letter.

Do I need to be a resident in Spain to apply for a mortgage?

No, but the conditions are different. Non-residents usually get financing of 60-70% with higher rates. You’ll need more documentation and the process is longer.

About Documentation

What happens if my payslips show variable income?

Banks will calculate the average of your last 12-24 months. If you have significant commissions or overtime, prepare a document explaining your salary structure and demonstrating consistency.

Can I use bank statements from accounts abroad?

Yes, but they’ll need sworn translation if they’re not in Spanish. Banks may request additional verification of the documents’ authenticity.

Does my tax return affect me if I requested a payment deferral?

Not necessarily, but the bank might ask why you requested a deferral. Prepare a reasonable explanation (for example, tax optimization, not lack of liquidity).

About the Process

Can I change banks after pre-approval?

Yes, pre-approval is not binding. In fact, it’s advisable to get pre-approvals from several banks to compare and negotiate.

What happens if the appraisal is higher than the purchase price?

Good news: it means you’re buying well. But the bank will still finance 80% of the purchase price (the lower of the two values). You don’t get extra financing.

Can I include renovation costs in the mortgage?

Some banks offer mortgages that include renovation financing, but with specific conditions. Generally, you need a detailed budget and financing is released in phases as work progresses.

About Special Conditions

Does being a guarantor for someone else affect me?

Yes, it appears in your CIRBE as contingent risk. If the person you guaranteed has payment problems, it could affect your borrowing capacity and risk profile.

Can I apply for a mortgage if I’m on furlough (ERTE) or similar?

It’s very difficult. Most banks wait for your employment situation to normalize. If your company has already confirmed full reinstatement, you could try with that documentation.

Do credit cards affect me even if I don’t use them?

Available credit card limits can be considered potential debt. If you have cards with high limits that you don’t use, consider reducing the limits or canceling them before applying.

Pre-Mortgage Application Checklist

Before starting the application process, verify each point on this list:

Personal Situation

• Valid DNI/NIE
• Defined civil status (single/married/common-law partner)
• Updated registration certificate

Employment Situation

• Minimum 2 years of job seniority
• Permanent contract (or temporary with 2+ years of renewals)
• Last 3 payslips available
• Updated work history
• Last 2 IRPF tax returns

Financial Situation

• Checked ASNEF/RAI (no defaults)
• Checked CIRBE
• Current debt-to-income ratio calculated
• Sufficient savings for down payment + expenses
• Bank statements for last 6 months

Property Documentation

• Updated nota simple from the Registry
• Deposit contract or reservation
• Cadastral reference identified
• Verified no encumbrances

Preparation

• Pre-approval requested from at least 2 banks
• Conditions compared
• Complete budget calculated (price + expenses + possible renovations)
• Plan B if appraisal is lower

Conclusion: Your Action Plan

Getting a mortgage in Spain in 2026 is perfectly achievable if you understand the rules of the game and prepare your application correctly. Banks aren’t looking for perfect profiles: they’re looking for profiles that demonstrate capacity and willingness to pay.

The three most important factors are:

1. Low debt-to-income ratio (maximum 35%, ideally less than 30%)
2. Demonstrable job stability (minimum 2 years, ideally permanent contract)
3. Sufficient savings (20% down payment + 10-12% expenses)

If you meet these requirements, the process should be relatively straightforward. If any of these factors isn’t completely aligned, you have options: the ICO Guarantee for the down payment, co-owners to add income, or simply time to improve your profile.

My final recommendation:

1. Honestly evaluate your current situation
2. Identify which factors you need to improve
3. Work on them before starting to look for a property
4. When you’re ready, request pre-approval from several banks
5. Once you have pre-approval, look for a property with peace of mind

The process may seem complex, but thousands of people complete it successfully every month in Barcelona. With proper preparation and realistic expectations, you can achieve it too.

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If you have specific questions about your situation or need personalized advice for purchasing your property in Barcelona, contact Pedro Ochoa Inmobiliaria. We’ve been helping buyers find their home and navigate the financing process for over 15 years.