How much can you borrow?
For non-residents, Spanish banks generally finance up to 60 to 70% of the price or of the valuation, whichever is lower. You cover the extra costs and the rest of the price yourself. Residents can often borrow more.
The term is limited and the bank looks at your age at the end of the loan. You usually choose between a fixed rate, a variable rate linked to Euribor, or a mix. Always compare several offers.
Which documents does the bank ask for?
- passport and your NIE number
- payslips or, if self-employed, recent accounts
- your latest tax returns in your home country
- bank statements and an overview of existing loans
- the purchase contract or reservation agreement for the property
How it works
After a preliminary approval, the bank has the property valued by an approved valuation company. You then receive the binding offer and the statutory information documents. Under Spanish law you must receive these some days before signing and review them beforehand with a notary. The mortgage deed is signed on the same day as the purchase deed.
Alternative: financing from your home country
Some buyers borrow from their own bank, for example against their home in their country of residence. That can be simpler, but terms and tax consequences differ per bank and country. Have both options compared by an independent adviser.
Frequently asked questions
Can I get a Spanish mortgage as a foreign buyer?
Yes. Spanish banks lend to non-residents, generally up to 60 to 70% of the price or valuation. Conditions can be stricter for buyers from outside the EU.
Do I need a Spanish bank account?
Yes. You need a Spanish account for the mortgage and for paying the annual costs.
Who pays the costs of the mortgage deed?
Since 2018 the bank pays the stamp duty, notary and registration of the mortgage deed. You usually pay the valuation.