Loan agreement in Spain: Template, Key Clauses and Local Law (2026)

What a loan agreement is under Spanish law A loan of money (contrato de prestamo, or mutuo) is a contract where a lender hands over a sum and the borrower agrees to repay the same amount, usually with interest. Spanish law treats it in the Civil Code and the Commercial Code, with a famous usury statute from 1908 and modern consumer protections layered on top. ## What Spanish law requires An ordinary loan is largely free of form. A business or private loan does not need a notary or a fixed template to be valid, although a written agreement is strongly advised for proof and for tax. An interest-bearing loan needs the interest to be agreed in writing to be due (Article 1740 and 1755 of the Civil Code: no interest is owed unless expressly stipulated). The 1908 usury law can void an abusive loan. The Ley de Represion de la Usura of 23 July 1908 (the Ley Azcarate) is still in force. It voids a loan whose interest is notably higher than the normal rate of money and manifestly disproportionate to the circumstances. The Tribunal Supremo has built a clear line of case law on it. In STS 628/2015 it first declared a revolving credit usurious. In the landmark STS 149/2020 (Wizink) it held that the benchmark for the normal rate of money is the average rate for the specific category of operation, taken from the Bank of Spain's official statistics, and noted that average was already very high. More recently the Court has extended the usury analysis to ordinary personal loans. If a loan crosses the usury line, it is void, and the borrower repays only the principal. Consumer credit is heavily regulated. When the borrower is a consumer, the loan is governed by the consumer credit law (Ley 16/2011) and, for mortgage credit, Ley 5/2019, with pre-contract information, a standard form, a withdrawal right and transparency controls on terms. A business that lends to consumers must meet the applicable conduct rules. Tax on loans. A loan is subject to the tax on capital transfers and documented legal acts (ITP y AJD), but loans are expressly exempt from that tax, so no tax is actually paid; the parties should still file the self-assessment (modelo 600) to record the exemption. A loan between relatives at zero or below-market interest can raise gift tax questions, so a defensible market rate and a written contract help. Stamp and notary. A plain loan needs no notary. Notarial form and Land Registry entry arise where the loan is secured by a mortgage (hipoteca) over real estate, which must be by public deed and registered; mortgage loans to consumers also carry the extra duties of Ley 5/2019. ## The clauses that differ under Spanish law - Interest and the usury line: keep the rate within the normal range for that type of loan, measured against the Bank of Spain averages, or the 1908 law can void the whole loan.

• Interest must be stipulated: no interest is due unless expressly agreed in writing.
• Consumer transparency: a consumer loan must pass transparency controls, with clear pre-contract information and a withdrawal right.
• Tax filing: although loans are exempt from ITP y AJD, the self-assessment (modelo 600) should still be filed to record the exemption.
• Security: a mortgage needs a public deed and Land Registry entry. ## A usable template (adapt with advice) Replace every [bracketed] field. This is a skeleton, not legal advice. ``` LOAN AGREEMENT (CONTRATO DE PRESTAMO) 1. Parties: Lender [name, ID/NIF, address]; Borrower [name, ID/NIF, address].

2. Loan amount: The Lender lends EUR [amount in figures and words] to the Borrower.
3. Payment: The amount is paid to account [IBAN] on [date].
4. Interest: [X] percent per year, expressly agreed, within the normal rate for this type of loan. [If zero, state it; note the gift-tax risk between relatives.]
5. Repayment: [one sum on date / instalments of EUR X from date] until fully repaid.
6. Early repayment: The Borrower may repay early [without penalty].
7. Default: On default, [contractual default interest, not abusive] applies and, after written demand, the whole balance may fall due.
8. Consumer terms (if applicable): pre-contract information and the statutory withdrawal right apply.
9. Security: [none / mortgage over [property] by separate public deed and Land Registry entry].
10. Tax: The parties will file modelo 600 to record the ITP y AJD exemption for loans.
11. Governing law and forum: Spanish law; the competent Spanish court at [place]. Signed by both parties at [place] on [date].

- **Clause 7 (default)**: a default-interest rate that is abusive can be struck down, especially in consumer loans. Keep it proportionate.
- **Clause 10 (tax)**: loans are exempt from ITP y AJD, but filing modelo 600 records the exemption and avoids later questions. A below-market family loan can attract gift tax, so document the rate.
- **Clause 9 (security)**: a hipoteca is a public-deed act that must be registered, and consumer mortgage loans carry the added duties of Ley 5/2019. ## Red flags - A rate notably above the normal range for the loan type, risking the whole loan being void under the 1908 law.
- Charging interest that was never expressly agreed in writing, so none is legally due.
- A zero or below-market family loan with no written contract, inviting gift-tax treatment.
- An abusive default-interest clause, especially against a consumer.
- Treating a mortgage as created by the loan alone, without the public deed and registration.
- Lending to consumers without meeting the pre-contract information and transparency rules. ## One workspace for the loan and its whole life A loan is a long run of dates and limits. Instalments fall due, a rate has to stay within the usury range that the Bank of Spain averages define, a consumer withdrawal period runs, a modelo 600 has to be filed, a hipoteca has to be released on final repayment. The agreement is signed and then the schedule runs quietly until a payment is missed, a rate is challenged as usurious, or a tax filing is forgotten, and everyone starts hunting for the clause and the right figure. An AI contract workspace is built to hold that whole life in one place: draft the agreement, read the interest, default and consumer terms back in plain language, track every due date and filing as a live alert, and keep each version tied to the borrower and the right people. [Adira](https://adiralaw.com) is built around Indian corporate law first, and depth for Spanish usury and consumer credit rules is on its roadmap rather than live today, so a Spanish loan still needs Spanish counsel and a check against the current Bank of Spain averages. The idea to keep is simple: the loan document and the schedule it creates belong together, not in a drawer and a spreadsheet. This guide is general information, not legal advice. Confirm the current rules and reference rates with a Spanish lawyer before you lend.