A mortgage in Spain as an entrepreneur or self-employed professional
As an entrepreneur or freelancer, you often earn more than someone in salaried employment. Yet, a Spanish bank looks at your income in particular with the most questions. No permanent contract, no monthly payslip, so a heavier burden of proof. The good news: a Spanish mortgage as an entrepreneur is possible. However, your figures from the past three years determine what you can borrow, not your turnover from last month.
In this guide, you will read how Spanish banks assess the income of entrepreneurs, how much you can finance as a non-resident, which documents you need to have ready, and where things go wrong in practice. This way, you know where you stand in advance, instead of finding out when the bank already has your application on the table.
Table of contents
- Can you get a Spanish mortgage as an entrepreneur or self-employed person?
- How Spanish banks assess your income
- What your legal form means for the assessment
- How much can you borrow?
- Which documents you need
- Not every bank views entrepreneurs the same way.
- The biggest pitfalls for entrepreneurs
- Frequently Asked Questions
Can you get a Spanish mortgage as an entrepreneur or self-employed person?
Yes. Spanish banks provide mortgages to entrepreneurs and self-employed individuals, even if you live in the Netherlands or Belgium and the property will not become your primary residence. The basic rules are the same as for salaried employment: as a non-resident, you usually finance 60 to 70 percent of the appraised value, meaning you contribute at least 30 percent yourself. On top of the purchase price come closing costs of approximately 10 to 12 percent.
The difference lies in the income test. Whereas an employee shows an employment contract and three payslips, you must demonstrate that your business is stable and profitable. The bank wants to see that your income is structural, not a one-off. That is why it does not look at a month or a year, but at a longer period.
How Spanish banks assess your income
This is the heart of your application. A Spanish bank calculates your income as an entrepreneur based on the average of the last three years. It takes your taxable profit and deducts the tax paid. The most recent year carries the most weight: a good final year helps you, while a dip lowers your maximum.
Next, the bank assesses your monthly expenses against the 35 percent rule. Your total fixed expenses—meaning the new Spanish mortgage plus your existing obligations in the Netherlands or Belgium—may not exceed approximately 35 percent of your net monthly income combined. If you already have a mortgage here, that expense is therefore included in the calculation.
Two things are important to understand. First, the expected rent from the property you are buying in Spain does not count as income. Existing, verifiable rental income from other real estate does count. Second: your turnover is not your income. The bank calculates based on what remains after deductions and what has been declared to the tax authorities.
What your legal form means for the assessment
Not every entrepreneur is the same in the eyes of a bank. Roughly speaking, there are three situations.
If you have a sole proprietorship or work as a freelancer, the bank looks at your business profit as stated in your income tax return, averaged over three years.
If you are in a general partnership (VOF), your share of the profit counts, not the entire profit of the partnership.
If you are a director and major shareholder of a BV, the situation is more nuanced. The bank looks at your director's salary and sometimes additionally at the profit or dividends in your BV. That is a separate matter, with its own points to consider. For more information, please read our explanation regarding the director and the Spanish mortgage.
How much can you borrow?
As a non-resident, you can count on financing of 60 to 70 percent of the lower of two values: the appraisal value or the purchase price. You contribute the remainder yourself. And don't forget the buyer's costs, which you also pay from your own funds.
An example. Suppose you are buying a home for 400,000 euros. With 65 percent financing, you borrow 260,000 euros and put down 140,000 euros of your own money. On top of that, there are approximately 44,000 euros in closing costs, about 11 percent. In total, therefore, in this example, you need around 184,000 euros of your own funds. Whether you actually receive that mortgage of 260,000 euros depends on your income test: your average income over three years must keep the monthly payments within the 35 percent rule.
Would you like to calculate your situation? Use our mortgage calculator for an initial indication.
Which documents you need
As an entrepreneur, you deliver more than an employee. In any case, have the following ready:
- your income tax returns for the last three years (your Dutch or Belgian return, not a Spanish one)
- your annual accounts or profit and loss account for the same period
- a recent extract from the Chamber of Commerce or proof of registration
- statements of your business and private account
- an overview of your current loans and obligations
- a copy of your passport and your NIE number, the Spanish tax number for foreigners
The more complete and well-organized your documentation is, the smoother the bank will assess your application. Missing or contradictory figures are the most common reason for delays.
Not every bank views entrepreneurs the same way.
Spanish banks do not have identical policies. Some are more flexible regarding fluctuating entrepreneurial income than others, and conditions vary by bank and profile. It therefore pays to compare, rather than approaching the first bank you come across. In our overview of banks in Spain, you can read how the major players operate. An advisor familiar with your case knows which bank suits an entrepreneurial income like yours.
The biggest pitfalls for entrepreneurs
We see three things go wrong most often in practice.
The first is trying to be too smart from a tax perspective. Many entrepreneurs reduce their taxable profit with deductions. This is convenient for your tax assessment, but a lower taxable income also means a lower mortgage. What you save on the tax authorities can cost you your financing capacity.
The second is a weak final year. Because the most recent year carries the most weight, a weaker period can significantly lower your maximum, even if the preceding years were good.
The third is setting aside too little of your own money. Do not count solely on the 30 percent down payment, but also on the 10 to 12 percent buyer's costs. Anyone who underestimates this will run into trouble just before the notary.
Frequently Asked Questions
Can I get a Spanish mortgage with just one year of figures?
Usually not. Banks typically want to see three years of figures to assess your income as stable. With one or two years, it is more difficult, although a strong case file and a substantial down payment can help. Have your situation assessed before you start looking for a home.
Does the profit in my BV count, or only my director's salary?
The bank initially looks at your director's salary, and sometimes additionally at the profit or dividend in your BV. This varies by bank. For more information, please see our explanation regarding the director-major shareholder and the Spanish mortgage.
What if my final year was worse than the years before?
That lowers your maximum, because the final year carries the most weight. A solid explanation of why that year deviated, plus a higher personal contribution, makes the discussion with the bank easier.
What is the minimum amount of my own money I need?
Count on a minimum down payment of 30 percent of the value, plus 10 to 12 percent buyer's costs. For a home of 300,000 euros, that quickly amounts to 120,000 to 130,000 euros.
Can I rent out the property to pay the mortgage?
The expected rent of the home you are buying does not count towards the income test. Renting out is permitted and there is no obligation to occupy the property yourself, but the bank does not count on this when processing your application.
Do I submit my Dutch or my Spanish tax return?
As a non-resident, you submit your Dutch or Belgian tax returns. A Spanish IRPF return is for people who are tax residents in Spain.
