There are more than 3.3 million self-employed workers in our country. Although there are different types of independent workers (freelancers, entrepreneurs, self-employed collaborators or dependents) they all have something in common: just like the average Spaniard, they may need financing to buy their home. Is it possible to get a mortgage as a self-employed person? Of course! You just have to know where to look and what documentation the financial institutions will require.
Is it more difficult to have a mortgage as a self-employed person?
In general, working for ourselves usually involves more demanding requirements when it comes to accessing financing. In the case of mortgages for self-employed workers, the key is the stability and recurrence of the applicant's income. To begin with, a self-employed person rarely has the same income. salary every month. It is normal for income to vary each time, usually within a minimum and maximum figure. However, there are also those that are very seasonal if, for example, they depend on tourism. Despite this, self-employed workers can access the contracting of a mortgage.
Requirements for mortgages for self-employed workers
The conditions of mortgages for self-employed workers are not very different from those that are usually requested for other profiles. Ultimately, what the financial institution wants is the same: to make sure that you will be able to meet the loan.
To do so, the entity will analyze issues such as:
- Your income and billing over time. Here they will analyze the specific figure and the recurrence of the income.
- The number of years you have been working for yourself or running your business. The more, the better.
- Your overall financial situation and level of debt. To get a mortgage as a self-employed person, your debts, including the mortgage loan, should not exceed 40% of your income.
- Your credit history and whether you have any outstanding debts with your suppliers, the Tax Agency, Social Security and other banks.
- If you have savings. Typically, the bank will finance up to 80% of the lower figure between the appraisal value and the purchase price of the house. This means that you will need to have saved around 30-35% of the value of the house to be able to buy a home with your salary.
Documentation you will need to present
All of these requirements for mortgages for self-employed workers must be prepared as part of the documentation that must be submitted when applying for a mortgage loan. These documents and information will help the entity evaluate your financial situation and solvency.
This documentation includes:
- Your latest income tax return, which will give them an idea of your income throughout the year.
- The last quarters of VAT and also of IRPF if you submit the Treasury form 111.
- The updated work history, which will help them to see your professional career.
- Extracts of your movements, of your current accounts, to know your financial health.
In addition to the documents you submit, the entity will normally check CIRBE to see if you have other bank loans and will review whether you appear in any bad debt file.
Can you deduct your mortgage as a self-employed person?
One of the advantages of being self-employed is that you can subtract a number of deductible expenses from your income, both in VAT and in personal income tax. These expenses must be related to your activity and be necessary to be able to carry it out. Can the mortgage be included as a deductible expense?
Yes, you can deduct your mortgage as a self-employed person, although not in general or on the entire mortgage. Specifically, you can deduct the proportional part of the surface area of the home that you use for your economic activity up to a maximum of 30%.
That is to say, you can only deduct your mortgage as a self-employed person if your home is also your tax domicile and you work from it. In that case, you can deduct the proportional percentage of the house occupied by your office, for example, with a limit of 30% of the total.
In addition to the mortgage, you can also deduct some expenses related to your habitual residence, such as household supplies or community fees, although within certain limits.
