Cancelling a mortgage in Spain involves more than simply settling the outstanding debt with the bank – it also requires a series of formal steps and associated costs. Mortgage cancellation fees can vary depending on factors such as when you cancel, when the mortgage was signed or whether it involves early repayment. This article explains everything you need to know.
What are mortgage cancellation fees in Spain?
Cancel your mortgage with a clear understanding of the costs involved:
Early repayment fee
This amount depends on when you signed your mortgage. You may have to pay a legally established percentage if the loan was signed after 16 June 2019, or if a subrogation or novation was carried out after that date.
Depending on the type of loan and when the repayment is made, the percentage applied may vary:
| Mortgage type | Amortisation period | Commission or maximum compensation |
|---|---|---|
| Fixed interest rate | During the first 10 years | 2% |
| After | 1.50% | |
| Variable interest rate | During the first 3 years | 0.25% |
| During the first 5 years | 0.1% | |
| After | 0% | |
| Change from variable to fixed interest rate | During the first 3 years | 0.05% |
| After | 0% | |
| Other cases | 0% | |
Source: Bank of Spain
If you took out your mortgage before 16 June 2019 – or carried out a subrogation or novation before that date – you will be subject to a mortgage cancellation or early repayment fee. In addition, you will need to cover notary and Land Registry costs.
Mortgage registry cancellation fees
If you repay the mortgage in full on time and correctly, you must record this in the Property Registry through the corresponding mortgage cancellation deed, which must be signed before a notary.
These are the fees you will need to pay, which are applicable in the same way to early mortgage cancellation:
- Notary and registry fees: They depend on the mortgage amount. For example, for a mortgage of €50,000, notary fees may be around €130, rising to approximately €260 for a €500,000 mortgage.
- Agency fees: They depend on the provider, but typically range between €100 and €500, depending on the case.
Who pays mortgage cancellation fees?
In any case, mortgage cancellation fees are the responsibility of the mortgage holder, as they are the one who benefits from the cancellation.
Table of mortgage registry cancellation fees
The fees associated with cancelling a mortgage registry often raise many questions. The simplest way to calculate them is by using a mortgage cancellation fee calculator, as the regulations governing these charges can be complex.
Specifically, the amounts payable for registering deeds of subrogation, modification, novation and mortgage cancellation – based on the remaining balance reduced by 90% – follow the scale below:
| Mortgage amount | Fee amount |
| Up to €6,010.12 | €24.04 |
| Between €6,010.13 and €30,050.61 | 1.75 per 1,000 |
| Between €30,050.62 and €60,101.21 | 1.25 per 1,000 |
| Between €60,101.22 and €150,253.03 | 0.75 per 1,000 |
| Between €150,253.04 and €601,012.10 | 0.30 per 1,000 |
| Over €601,012.10 | 0.20 per 1,000 |
In any case, the total applicable fee should not exceed €2,181.67 or be less than €24.04, and a 5% reduction is applied to the final amount.
What is mortgage cancellation commission?
Mortgage cancellation commissions range from 0 to 2%, depending on factors such as the mortgage term, whether it is a fixed or variable rate mortgage and whether you switched from a variable to a fixed rate at any point.
The signing date is also relevant – if you took out your mortgage before 16 June 2019 and you have not carried out any subrogation or novation since then, different rules will apply.
Mortgage cancellation fee examples
If you're going to cancel a mortgage after fulfilling all the payments and according to the stipulated term, the total cost will be around €150, with €110 corresponding to the notary and around €36 to the Property Registry.
However, for early repayments, this fee will depend on the outstanding amount. Below are some examples:
How much does it cost to cancel a €60,000 mortgage?
In this example, the approximate notary fees are €124, and the registry fees are around €36. In total, €160, not including the early mortgage repayment fee.
How much does it cost to cancel a €100,000 mortgage?
The cost would be the sum of a notary's fee of approximately €146, plus registry fees of around €36. That is, about €182. Also, in this case, since it is an early cancellation, the early mortgage repayment fee must be added to this amount.
How much does it cost to cancel a €150,000 mortgage?
The price would be the sum of notary fees of approximately €166, plus registry fees of around €41. That is, a little over €200. Since this is an early cancellation, the early mortgage repayment fee must also be added.
Are mortgage cancellation fees deductible for Spanish personal income tax (IRPF)?
The Directorate General of Taxes (DGT) has clarified this issue through a binding consultation, confirming that the following expenses are considered inherent to the transfer and, therefore, are deductible:
- Notary and registry fees for mortgage cancellation.
- Fees of the estate agent that handled the sale.
- Municipal capital gains tax.
- Expenses related to energy efficiency certificates, habitability certificates, and certificates regarding debts with the community of owners.
