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 lower LTV ratios, more documentation requirements, and sometimes higher rates. The most active lenders for foreign buyers on the Costa del Sol include Banco Sabadell, CaixaBank, and Unicaja.

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

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

Documentation Required

Spanish banks require extensive documentation for non-resident applications:

  • Valid passport and Spanish NIE number
  • Last 2–3 years' tax returns from your home country
  • Last 3–6 months' payslips (employees) or 2 years' business accounts (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
  • All documents must be officially translated into Spanish by a sworn translator

Fixed vs Variable Rate Mortgages in Spain

After the interest rate rises of 2022–2024, fixed-rate mortgages have become significantly more popular. For 2026, fixed rates for non-residents are typically 2.8–4.5% depending on LTV, term, and borrower profile. Variable mortgages are Euribor + 0.5–1.5%.

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

Mortgage Costs in Spain

Since Spain's 2019 Mortgage Law reform, most mortgage costs are paid by the bank. The buyer pays only:

  • Property valuation (tasación): €300–€600
  • Their own legal fees for reviewing the mortgage conditions

The bank pays notary fees for the mortgage deed, Land Registry registration, and AJD stamp duty on the mortgage.

The Role of Your Lawyer in the Mortgage Process

Your lawyer reviews the FEIN (European Standardised Information Sheet) — the binding pre-contractual document setting out all mortgage terms. Spanish law requires the bank to provide the FEIN at least 10 days before signing. Your lawyer ensures terms are standard, flags unusual conditions, and represents you at the notary.

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 with standard non-resident LTV (60–70%). Many Spanish banks have dedicated teams handling UK buyers.
From submitting a complete application to receiving a binding offer typically takes 4–8 weeks for non-residents. We recommend starting the mortgage process before signing the arras contract and allowing 10–12 weeks total.
The bank uses the lower of purchase price or valuation for LTV. If the valuation is lower, your borrowing capacity is reduced and you must cover the gap with cash. Include a mortgage condition in the arras contract allowing withdrawal without penalty if the mortgage is not approved.