Buying Property in Spain with a Mortgage: Guide for Non-Residents
Can you get a mortgage in Spain as a foreigner? Yes, but the conditions are different from your home country. Here is everything you need to know about Spanish mortgages for non-residents.
Quick Answer
Spanish banks typically lend non-residents up to 60% to 70% (compared to 80% for residents). Interest rates can be fixed, variable (linked to Euribor), or mixed. You will need proof of income, tax returns from your home country, a credit report, and an NIE number.Always have your lawyer review the mortgage conditions before signing.
Helping non-residents buy property on the Costa Blanca since 1993
Legal advice in English and French
How Much Can Non-Residents Borrow?
Spanish banks apply different lending criteria to non-residents compared to residents. As a non-resident, you can typically borrow between 60% and 70% of the lower or the bank valuation. This means you need a minimum deposit of 30% to 40%, plus an additional 12% to 15% for taxes and fees.
For example, if you are buying a property for 300,000 euros, the bank may lend you 180,000 to 210,000 euros. You would need between 90,000 and 120,000 euros as a deposit, plus approximately 36,000 to 45,000 euros for taxes and costs. In total, you should budget to have around 40% to 50% available in cash.
Types of Mortgage Available in Spain
| Type | How It Works | Best For |
|---|---|---|
| Variable rate | Interest rate = Euribor + bank margin (typically 1% to 2%). Reviewed every 6 or 12 months. | Buyers who want lower initial payments and can accept rate fluctuations |
| Fixed rate | Fixed interest rate for the entire term (typically 2.5% to 4%). | Buyers who want payment certainty and protection against rate rises |
| Mixed rate | Fixed rate for the first 3-10 years, then switches to variable. | Buyers who want initial stability with potential future savings |
Documents You Will Need
NIE number — Your Spanish tax identification number. Essential for any financial transaction in Spain.
Passport — Valid passport for identification purposes.
Proof of income — Last 3 months of payslips if employed, or last 2-3 years of accounts if self-employed.
Tax returns — Last 2 years of tax returns from your home country, translated into Spanish.
Bank statements — Last 6 months of bank statements showing regular income and your deposit savings.
Credit report — From your home country, to demonstrate your creditworthiness.
Existing loan information — Details of any existing mortgages, loans, or credit card debts.
Employment contract — Or proof of pension income if retired.
Additional Mortgage Costs to Budget For
Bank valuation fee 300 to 600 euros. The bank will send its own valuer to assess the property.
Mortgage deed notary fee Paid by the bank since the 2019 mortgage law reform.
Stamp duty on mortgage Also paid by the bank since 2019.
Life insurance Some banks require you to take out a life insurance policy as a condition of the mortgage. Others offer better rates if you do.
Home insurance Building insurance is mandatory for all mortgaged properties.
The 2019 Mortgage Law: How It Protects You
Spain reformed its mortgage law in June 2019 (Ley 5/2019) to give borrowers much stronger protection. Key changes include: the bank now pays the notary, registry, and stamp duty costs on the mortgage deed; you must receive a binding offer at least 10 days before signing; the notary must verify you understand the terms before you sign; early repayment fees are capped; and eviction rules are stricter.
Why You Need a Lawyer for Your Mortgage
Your lawyer should review the mortgage conditions before you sign, including the interest rate, early repayment penalties, linked products (insurance, credit cards), default clauses, and any floor clauses (clausula suelo). While the 2019 law banned the worst abuses, it is still important to have independent legal advice on the terms of your mortgage.
Areas We Serve
We assist non-resident mortgage buyers across the Costa Blanca, including Javea (Xabia), Moraira, Denia, Altea, and the wider Valencian Community.
Frequently Asked Questions
Can British citizens still get a mortgage in Spain after Brexit?
Yes. British citizens can still obtain mortgages in Spain, though as non-EU residents the terms may be slightly less favourable. Most Spanish banks continue to lend to British buyers at 60% to 70% loan-to-value.
What is the maximum mortgage term for non-residents?
Most Spanish banks offer mortgage terms of up to 20 to 25 years for non-residents. The mortgage must typically be repaid before the borrower reaches 70 to 75 years of age.
Can I get a mortgage in Spain if I am retired?
Yes, provided your pension income is sufficient to cover the repayments. Banks typically require that mortgage payments do not exceed 30% to 35% of your net income. The mortgage term will be limited by the age cap.
Should I get a mortgage in Spain or in my home country?
Both options have advantages. A Spanish mortgage avoids currency risk if the property generates rental income in euros. A mortgage in your home country may offer better rates. We recommend consulting a mortgage broker who specialises in international property finance.
What happens if I cannot pay my Spanish mortgage?
If you default on your Spanish mortgage, the bank can initiate foreclosure proceedings. Since the 2019 law reform, the process has additional safeguards, but the ultimate consequence is the loss of the property. If you are struggling with payments, contact your lawyer early to explore restructuring options.
Need Legal Advice on Your Spanish Mortgage?
Contact our experienced property lawyers to review your mortgage conditions.
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