Spanish mortgages for non-residents

Spanish banks also lend to buyers who do not live in Spain. The terms do differ from those for residents: you borrow a smaller share of the value, supply more paperwork and need more time to prepare.

How much the bank will lend

For tax residents, Spanish banks lend up to around 80 per cent of the valuation. For non-residents the figure is usually between 60 and 70 per cent. You contribute the difference yourself, together with the purchase costs for tax, notary and lawyer. Banks do not finance those costs.

An indicative example: on a resale property of €255,000, the additional costs come to roughly €22,600. If you borrow 70 per cent, you need around €99,100 of your own funds in total. The breakdown of purchase costs is on our page on costs and taxes.

Other differences for non-residents, as of 2026 and varying from bank to bank:

  • Interest rate: usually slightly higher than for residents, indicatively 0.25 to 0.5 percentage points.
  • Term: generally a maximum of 20 to 25 years.
  • Affordability: banks work on the basis that monthly repayments should not exceed 30 to 35 per cent of your net monthly income. Treat this as a ceiling, not a target. Existing loans are taken into account.

If your income is in a currency other than the euro, the exchange rate will affect your actual monthly cost. Factor this into how much you decide to borrow.

The valuation (tasación)

The bank has the property valued by an approved valuer and bases the loan on that valuation. If the valuation comes in below the purchase price, you will normally need to contribute more of your own money. The valuation is paid by the buyer and costs indicatively €300 to €600. Note that a mortgage valuation is usually not sufficient to challenge the cadastral reference value for transfer tax purposes; that requires a separate expert report.

Fixed, variable or mixed rate

  • Fixed: the same rate for the whole term, so predictable repayments. Usually more expensive at the outset.
  • Variable: linked to Euribor plus a margin and adjusted periodically. Initial repayments are lower, but they can rise.
  • Mixed: a fixed rate for the first years, variable thereafter.

The choice depends on how much certainty you want and how long you expect to keep the loan. Compare offers on the TAE, the annual percentage rate, which includes fees and any compulsory insurance. Small differences add up: half a percentage point more on €200,000 over 25 years costs more than €16,000 in extra interest.

Beyond the rate itself, look at:

  • arrangement and processing fees;
  • early repayment charges, particularly if you expect to pay off part of the loan early;
  • linked products such as home or life insurance, or having your salary paid into the bank. Check whether the rate discount outweighs the annual cost of those products.

Documents required

Personal:

  • passport and NIE (your Spanish tax identification number);
  • an income certificate from your country of residence and recent payslips;
  • your tax return from your country of residence; for the self-employed, returns for recent years;
  • a letter from your employer confirming salary and length of service, and your employment contract;
  • bank statements for the last six months.

Foreign documents often need a sworn translation and an apostille. Start on this in good time.

About the property:

  • the arras or reservation contract;
  • a recent nota simple, the extract from the land registry.

Process and timing

  1. Initial assessment: based on your details, a first indication or provisional approval usually follows within a few days.
  2. Application and review: the bank assesses your file and has the property valued. Allow one to two weeks.
  3. Offer and FEIN: you receive the FEIN, the standardised European information sheet setting out all terms. The offer is binding and you have a statutory ten-day reflection period before signing. Use it to have every clause explained.
  4. Signing at the notary: the mortgage deed first, then the purchase deed. The bank pays the loan amount directly to the seller.

The whole process usually takes four to six weeks, sometimes longer if documents have to come from abroad. So start before you sign the arras contract, and include a financing condition in it so that your deposit is returned if the bank declines to lend.

Mortgage costs

Since 2018 the bank has paid the tax on the mortgage deed (AJD), and since 2019 it has also borne the notary, registry and gestoría costs of the mortgage. You remain responsible for the valuation and any additional copies you request. The bank may also charge an arrangement fee, which is negotiable, and home insurance is compulsory; it costs indicatively €200 to €600 a year.

How CostaVista supports you

CostaVista works with a financing partner who calculates the options for your situation in advance, based on your income and assets. That way you know what budget you are working with before you reserve a property. We align the mortgage timetable with the arras contract and the completion date. If you would like your options worked out, please get in touch.

General information, as of October 2026. This is not legal, tax or financial advice; for your own situation, consult an independent specialist.