Getting a mortgage in Spain as a foreigner

Can Foreigners Get a Spanish Mortgage?

Yes. Spanish banks lend to foreign buyers, both residents and non-residents. However, non-residents typically face stricter conditions: lower loan-to-value (LTV) ratios, more extensive documentation requirements, and in some cases, higher interest rates. The most active lenders for foreign buyers on the Costa del Sol include Banco Sabadell, CaixaBank, Unicaja, and several international banks operating in Spain. Your property lawyer in Mijas can recommend mortgage brokers who specialise in foreign buyer lending.

Loan-to-Value (LTV) for Non-Residents

For Spanish residents, banks typically lend up to 80% of the property's appraised value. For non-residents, the maximum LTV is generally 60–70% of the lower of the purchase price or appraised value. This means you must have a minimum of 30–40% of the purchase price available as a cash deposit — plus the purchase taxes and costs (10–13%). For a €300,000 property, budget approximately €130,000–€150,000 in cash (deposit + costs).

Documentation Required

Spanish banks require extensive documentation for non-resident mortgage applications. Typically:

  • Valid passport and Spanish NIE number
  • Last 2–3 years' tax returns from your home country
  • Last 3–6 months' payslips (for employees) or last 2 years' business accounts (for self-employed)
  • Bank statements showing 3–6 months of transactions
  • Proof of other assets (savings, investments, other properties)
  • Credit report from your home country
  • Nota simple for the property (Land Registry extract)
  • All documents must be officially translated into Spanish by a sworn translator

Fixed vs Variable Rate Mortgages in Spain

Spanish mortgages are available on fixed or variable (Euribor-linked) rates. After the interest rate rises of 2022–2024, fixed-rate mortgages have become significantly more popular. For 2026, fixed rates from Spanish banks for non-residents are typically in the range of 2.8–4.5% depending on the LTV, term, and borrower profile. Variable mortgages are typically Euribor + 0.5–1.5%.

Spanish mortgages can be taken for terms up to 30 years (25 years for non-residents with some banks). The mortgage term must typically end before the borrower's 75th birthday.

Mortgage Costs in Spain

Since Spain's Mortgage Law reform in 2019, most mortgage costs are paid by the bank — not the buyer. The buyer pays only:

  • Property valuation (tasación): €300–€600, paid to the bank's approved valuer
  • Their own legal fees for reviewing the mortgage conditions (your lawyer should always review the mortgage offer before you sign)

The bank pays: notary fees for the mortgage deed, Land Registry registration of the mortgage, and the AJD (stamp duty) on the mortgage. This was a significant consumer protection reform.

The Role of Your Lawyer in the Mortgage Process

Your property lawyer plays a key role in the mortgage process. They review the FEIN (European Standardised Information Sheet) provided by the bank — a legally binding pre-contractual document setting out all mortgage terms. Spanish law requires the bank to provide the FEIN at least 10 days before signing, giving you time to review. Your lawyer ensures the terms are standard, flags any unusual conditions (floor clauses, excessive early repayment penalties), and accompanies you or represents you at the notary signing.

Frequently Asked Questions

Yes. Brexit has not affected the ability of British nationals to obtain Spanish mortgages. You will be treated as a non-EU non-resident and offered the standard non-resident LTV (60–70%). Some Spanish banks now have dedicated teams handling UK buyers, given the continued high volume of British property purchases on the Costa del Sol.
From submitting a complete application to receiving a binding mortgage offer typically takes 4–8 weeks for a non-resident buyer. Gathering and translating all the required documentation is often the bottleneck. We recommend starting the mortgage process as early as possible — ideally before signing the arras contract — and allowing 10–12 weeks total for the mortgage process in your property purchase timeline.
The bank bases its LTV on the lower of the purchase price or the official valuation. If the valuation comes in below the purchase price, your borrowing capacity is reduced — you need to cover the gap with additional cash. This is why it is important to commission an independent valuation early and not overcommit to a purchase price that may not be supported by a formal valuation. Your lawyer can advise on including a mortgage condition in the arras contract that allows you to withdraw without penalty if the mortgage is not approved.