Getting a mortgage in Spain as a foreign buyer: how it works

Many buyers of a home on the Costa del Sol finance part of the purchase. You can do this through a Spanish bank, but also through your own bank back home. Each option has its pros and cons. In this article we explain how much you can borrow as a non-resident, what a Spanish mortgage costs, which documents you need and how the process works.

Can you get a mortgage in Spain as a foreigner?

Yes. Spanish banks grant mortgages to non-residents, provided you have sufficient income and can demonstrate your financial position. The conditions are, however, stricter than for Spanish residents.

How much can you borrow?

• Non-residents: usually 60 to 70 per cent of the purchase price or the valuation, whichever is lower.
• Residents: often up to 80 per cent.
• Term: usually up to 25 to 30 years, with banks often applying a maximum age at the end of the loan.
• Affordability: banks look at your total debt burden. Your monthly repayments may not exceed a certain percentage of your net income.

On top of that, allow 10 to 13 per cent for buying costs, which you usually pay from your own funds. In practice, as a non-resident you will therefore often need 40 to 45 per cent of the price from your own resources. Read more about the costs in our step-by-step guide to buying a home in Marbella.

Fixed or variable rate?

Spanish banks offer fixed, variable and mixed products. The variable rate is linked to 12-month Euribor, which averaged around 3.25 per cent in September 2026, well over a percentage point higher than a year earlier. A fixed rate gives you certainty about your monthly payment. A mixed product combines a fixed period of a few years followed by a variable rate. Which choice is best depends on your situation and your view on interest rates.

What does a Spanish mortgage cost?

• Valuation (tasación): compulsory and paid by the buyer.
• Arrangement fees: some banks charge an arrangement fee, others do not. This is negotiable.
• Notary, registration and stamp duty on the mortgage: largely borne by the bank since Spain's 2019 mortgage law.
• Insurance: buildings insurance is compulsory. Banks often offer a lower interest rate if you also take out life insurance or other products.

Which documents do you need?

1. Passport or identity card and your NIE number.
2. Proof of income: payslips, or annual accounts and tax returns if you are self-employed.
3. Your most recent tax returns.
4. Bank statements for the past few months.
5. An overview of existing loans and, if requested, a credit report from your home country.
6. The reservation agreement or preliminary purchase contract for the property.

Documents not in Spanish often need to be translated. Start early, because putting the file together takes time.

The process step by step

1. Agreement in principle: based on your income and documents, the bank gives an initial estimate of how much you can borrow.
2. Valuation: once you have chosen the property, the bank has it valued.
3. Binding offer: you receive a standardised information document (FEIN) setting out all the terms.
4. Cooling-off period and notary: the law provides a period during which you can have the offer checked and the notary briefs you on the terms in advance.
5. Signing: the mortgage is signed at the notary together with the title deed.

Allow four to eight weeks from a complete file. Build this into your purchase timeline, especially if you sign a preliminary contract with a fixed completion date.

Alternative: financing through your bank at home

Many international buyers finance their Spanish home through their own bank, for example with a loan secured on their property back home. The advantage: you deal with a bank and a language you know, and the terms may be more favourable. The disadvantage: your home at home serves as collateral. Compare both options and get advice from an independent mortgage adviser.

Our tips

• Ask for an agreement in principle before you set off on your viewing trip . That way you know your budget and can make decisions quickly.
• Compare at least two or three banks. The terms vary widely.
• Have your lawyer check the binding offer.
• Take exchange rates into account if your income is not in euros.

Need help with your financing?

We are happy to put you in touch with Spanish banks and independent mortgage advisers who speak English. That way you can combine your search for the right home with the right financing. Get in touch or read Viewing trip to Marbella and Is now a good time to buy property in Spain?

Worked example

Suppose you buy an existing villa for €1.5 million as a non-resident and the bank finances 65 per cent.

This is a simplified example. The exact costs, loan-to-value and interest rate depend on the bank, your profile and the property.

Mortgages for off-plan new builds

If you buy new-build property off plan, you usually pay the first instalments during construction from your own funds. The mortgage is only set up on completion and at the signing of the title deed, based on a valuation of the finished property. So ask for an agreement in principle while construction is under way, so that your financing is ready on completion. Also read Buying a new build in Marbella.

Frequently asked questions

How much can I borrow as a non-resident in Spain?

Usually 60 to 70 per cent of the purchase price or the valuation.

What is the interest rate on a Spanish mortgage?

That depends on the bank and the product. Variable rates track 12-month Euribor, which stood at around 3.25 per cent in September 2026.

How long does it take to get a mortgage in Spain?

Allow four to eight weeks from a complete file.

Can I finance my Spanish home through my bank back home?

Yes, many buyers do, often using their home back home as collateral. Compare the terms with a Spanish mortgage.

Which documents do I need for a Spanish mortgage?

Your ID and NIE number, proof of income, your latest tax returns, recent bank statements and an overview of existing loans. Translations may be required.

Do I pay the notary costs of the mortgage myself?

Since the 2019 mortgage law, the notary, registration and stamp duty costs of the mortgage are largely borne by the bank. You pay for the valuation yourself.