Mortgages in Spain in 2024 for non-resident
A mortgage loan for property in Spain is a reliable tool that will help you to invest if you choose the right loan parameters. The interest rate in Spain in 2023 was one of the lowest and most attractive in Europe, remaining at 2.8–3.5%. Spanish banks offer foreign investors a number of advantages, which distinguishes their product from other banking products in the EU. Firstly, the opening of a mortgage loan is available to both residents and non-residents of Spain: upon confirmation of income and goals, a non-resident can get the mortgage approval from a Spanish bank. Secondly, since 2019, Spain has a mortgage law that allows multi-currency mortgages: in some cases, it is possible to pay off a loan in a currency other than the euro. However, there are also a number of restrictions for foreign debtors that affect the prospect of mortgage approval.
Mortgage in Spain for non-resident
Foreign applicants who wish to purchase property in the Kingdom of Spain can be divided into two categories: residents and non-residents of Spain. Spanish banks provide a separate list of requirements for each category. The Spanish banking system is most loyal to debtors from other EU countries, as well as to representatives of countries with stable economies and currencies: residents of the United Kingdom, the United States and Canada, Japan, and Australia. Spanish banks are the least loyal to customers from countries with unstable economies and political situations.
Requirements for foreign debtors
Foreign residents of Spain can get a mortgage on the following conditions:
- the loan amount can be up to 70–80% of the property value;
- the mortgage repayment period is up to 30 years;
- the rate for residents is 2–3% lower than for non-residents;
- the monthly payment should not exceed 35% of the total income of the investor.
Requirements for foreign debtors
Foreign residents of Spain can get a mortgage on the following conditions:
- the loan amount can be up to 70–80% of the property value;
- the mortgage repayment period is up to 30 years;
- the rate for residents is 2–3% lower than for non-residents;
- the monthly payment should not exceed 35% of the total income of the investor.
540,000 €
Total area 171 m² 4 bedrooms
1,796,000 €
Total area 175 m² 4 bedrooms
320,000 €
Total area 58 m² 2 bedrooms
800,000 €
Total area 90 m² 3 bedrooms
480,000 €
Total area 102 m² 3 bedrooms
397,000 €
Total area 45 m² 1 bedroom
575,000 €
Total area 103 m² 2 bedrooms
595,000 €
Total area 87 m² 2 bedrooms
Non-residents can get a mortgage on the following conditions:
- the loan amount is up to 60–70% of the property value;
- the mortgage repayment period is up to 20 years;
- the rate is on average 2–3% higher than for residents;
- the monthly payment should not exceed 35% of the total income of the investor.
Both residents and non-residents must provide evidence of the legality of the income used for both the down payment and monthly payments.
Mortgage conditions in Spain
Maximum LTV ratio | 70% |
Minimum loan amount | 50,000 € |
Fixed rates | From 2.5% per annum |
Loan term | Up to 30 years |
Minimum age of debtor | 18 |
Maximum age of debtor by the end of the loan term | 65 |
Maximum percentage of monthly income for mortgage | 35% |
Different banks establish their own minimum and maximum limits on mortgage loans for non-residents of Spain. On average, the minimum loan amount is 50 thousand euros, the maximum loan amount varies and can reach up to 2.9 million euros. Many banks make a condition for a higher minimum value of the purchased property — from 100–200 thousand euros.
Interest rate and types of mortgage loans in Spain
There are three types of interest rates in Spain: fixed, floating and mixed.
540,000 €
Total area 171 m² 4 bedrooms
1,796,000 €
Total area 175 m² 4 bedrooms
320,000 €
Total area 58 m² 2 bedrooms
800,000 €
Total area 90 m² 3 bedrooms
480,000 €
Total area 102 m² 3 bedrooms
397,000 €
Total area 45 m² 1 bedroom
575,000 €
Total area 103 m² 2 bedrooms
595,000 €
Total area 87 m² 2 bedrooms
Fixed interest rate
The fixed interest rate remains unchanged throughout the entire loan term. No economic events affect its initial size. Such a loan provides the debtor with protection from rising interest rates, however, in certain periods it may exceed the floating rate.
Floating interest rate
In a floating-rate loan, the contract provides that the interest rate changes according to variations in the European interbank rate Euribor every 6 to 12 months. The choice of such a loan is prospective when the interest rate is expected to fall in the near future.
Blended interest rate
Hybrid mortgage loan format, which provides for the first few years of payments at a fixed rate, followed by a change to a floating percentage. It is suitable for investors who plan to pay off most of the loan in the first few years.
Getting a mortgage in Spain process
The whole process of getting a mortgage consists of several stages, and begins with the selection of a property. It is necessary to go through the following steps:
- Choosing a bank and opening an account. At this stage, the investor is considering mortgage programs of several banks: rates and credit conditions. Chooses the bank and opens an account in it, from which the initial payment and related expenses will be paid in the future.
- Submitting an application and signing preliminary agreements. A preliminary agreement is being drawn up with the bank — Ficha de informacion personalizada (FIPER).
- Independent valuation of a property. A professional licensed company evaluates the true value of the property, its technical condition and location.
- Collecting the necessary documents and waiting for the bank’s decision. At this stage, the applicant collects, apostilles, translates into Spanish and provides all necessary documents at the request of the bank. The Bank makes its decision on the possible amount of the loan.
- Signing of the final contract and making the first payment. If the bank decision is positive, the final version of the mortgage agreement is signed, then the investor transfers the initial payment. At this stage, the transaction is registered in the state register.
- Mortgage payment. At this stage, the investor makes monthly payments according to the procedure established in the contract.
850,000 €
Total area 222 m² 3 bedrooms
1,200,000 €
Total area 212 m² 4 bedrooms
595,000 €
Total area 254 m² 3 bedrooms
540,000 €
Total area 83 m² 2 bedrooms
415,000 €
Total area 60 m² 1 bedroom
1,740,000 €
Total area 175 m² 3 bedrooms
1,209,000 €
Total area 150 m² 4 bedrooms
Required documents
The documents requested vary for applicants who are residents and non-residents of Spain.
Documents for non-residents of Spain:
- international passport and a copy of it;
- NIE (tax number of a foreigner) of Spain;
- a property reserve agreement signed with the seller and the developer;
- the evaluator’s conclusion on the market value of the object;
- an employment contract and a salary slip for the last year;
- confirmation of additional income (if any): dividends, rental income, ownership of property etc;
- tax return for the current and previous years;
- a bank statement showing the cash flow for the last 12 months.
Additionally for business owners and sole proprietors:
- certificate of registration of the company with the name of the founder;
- the company’s balance sheet for the last 2 years.
Documents for residents of Spain (in addition to the above documents):
- verification of legal residence in Spain (residence permit);
- an extract from the main bank account in Spain;
- confirmation of regular payments for rent / utilities;
- credit history in Spain;
- employment history, income declaration and contributions to the pension fund.
All documents must be apostilled in the country of reception and translated by sworn Spanish translators into Spanish.
Rights and responsibilities of the debtor
An investor purchasing property in Spain with a mortgage is obliged to:
- pay the amount specified in the contract on time, according to the established deadlines;
- inform the creditor within one month about the change of place of work, any changes in family, passport data, place of living;
- do not redevelop the apartment and other changes leading to a decrease in the value of the object, without the consent of the creditor.
The investor has the right to:
- pay off their mortgage early;
- in agreement with the creditor, sell the property with an outstanding mortgage.
The costs of getting a mortgage in Spain
When applying for a mortgage in Spain, the investor must take into account the related costs:
- the commission fee for opening a mortgage loan is 1–2% of the amount;
- the estimate of the property by an independent expert is about 300 euros;
- insurance of purchased housing is about 30 euros per month for the entire duration of the mortgage;
- the debtor’s medical insurance.
It is most profitable to purchase property insurance from the same bank where the mortgage is issued. However, the bank will not be against the purchase of insurance from another organisation. Registration of property and life insurance of the debtor are mandatory conditions for issuing a loan.
In Spain, there is often a penalty for early repayment of a mortgage — 0.5% of the remaining amount of debt.
Additionally, when buying an apartment, you will need to pay taxes: VAT (10%) and stamp duty (0.5–2%) on the purchase of primary property or transfer tax (6–10%) on the purchase of secondary property.
Additional costs when applying for a mortgage in Spain
Property valuation | Around 300 € |
Property insurance | 0.2% of the cost of the property per year |
Mortgage registration fee | 2% of the loan amount |
Penalty for early repayment of the loan | 0.5% of the remaining amount of debt (the rate may vary depending on the bank) |
Factors influencing the mortgage decision
Employment. The main criterion for making a positive decision is proof of a permanent, legitimate source of income and the debtor’s experience in a certain professional field. Such proof is the total work experience of at least 2 years and the experience at the current place of work — at least six months, and for business owners — evidence of the company’s activities for at least 1 year.
Income level. The minimum requirement of the bank is that the monthly loan repayment does not exceed 35% of the debtor’s income. By doing this, the client guarantees timely payments.
The age of the investor. The ideal age of an investor is considered to be from 25 to 55 years old.
Good credit score. One of the key factors is a long-term positive credit history in banks in Spain and other countries where the applicant has been or is a resident. Small and medium-sized loans repaid on time over the past 5 years contribute to a good credit rating. In the absence of a credit history, the probability of a positive decision by the bank is low.
The property. The loan approval is also influenced by the quality of the property: its condition, the need for renovation, the status of a cultural heritage object, the location and form of ownership of the property.
Which banks offer mortgages in Spain?
Mortgage lending in Spain is offered by many banks: Sabadell, BBVA, Bankia, Santander, Deutsche Bank, Ing Direct, La Caixa, Bankinter, Abanca and others. The main requirements of the bank to the debtor and the conditions for issuing a mortgage are similar, however, the applicant should consult with the real estate agency where the property is purchased, or with the developer about the possibility of concluding a mortgage agreement with one or another bank.
Banks’ requirements for debtors
The main requirements of banks for debtors are to confirm their financial viability, work experience, and the legality of income. The applicant must be at least 21 and no more than 70 years old at the time of filing the application. Additional requirements include making the first payment in the amount of at least 30% of the property value. Banks check the documents of non-residents especially carefully, as it is more difficult to assess their financial viability.
Banks’ requirements for property
The main requirement of banks for a property is that it must be liquid. Most often, primary property is approved for obtaining a mortgage, as well as property from the secondary market in good condition. The services of an independent estimator are used to check the condition of the property.
2,550,000 €
Total area 408 m² Land area: 1,132 m²
650,000 €
Total area 472 m² Land area: 880 m²
770,000 €
Total area 340 m² Land area: 964 m²
1,250,000 €
Total area 388 m² Land area: 849 m²
749,000 €
Total area 293 m² Land area: 1,000 m²
1,200,000 €
Total area 223 m² Land area: 945 m²
1,650,000 €
Total area 325 m² Land area: 1,000 m²
1,424,000 €
Total area 373 m² Land area: 2,363 m²
Multiple applications to different banks
One of the strategies in the process of getting a mortgage is to submit several applications at once to different banks in Spain. It increases the chances of getting a mortgage on more favourable terms. When applying for a mortgage, the easiest way is to use the services of a mortgage broker from a real estate agency through which a purchase and sale transaction is concluded.
Example of mortgage calculation and payments
The investor purchases apartments in a new building on the Costa Blanca, worth 150 thousand euros with an initial payment of 50% (75 thousand euros). A mortgage loan of 75 thousand euros is required, and the average fixed rate will be 3%. In this case, the mortgage will cost about 1,500 euros, and the total cost of the purchase is 19 thousand euros, of which 17 thousand euros is the purchase tax. The total cost of purchasing an apartment will amount to 20.5 thousand euros of expenses. You can use an online calculator to calculate your monthly payment.
Is it profitable to purchase a house with a mortgage?
In the long term, a mortgage in the EU is a reliable financial instrument that allows you to purchase property in Spain with a starting capital of 30–40% of the value of the object. Given the low interest rate, the possibility of paying in a currency other than the euro and the loyalty of Spanish banks to foreign debtors, mortgage lending makes it possible to receive rental income even after mortgage payments. After the mortgage payment is completed, the property can be sold, including with a noticeable increase in value. However, when purchasing a house with a mortgage, an investor will not be able to apply for a Spain Golden visa programme, since in order to obtain it, it is necessary to pay the entire cost of the property at one time.
The managers of the Tranio team will choose the best property in Spain and find for you the optimal investment strategy.
Contact us
Frequently asked questions about mortgages in Spain
- confirm your financial viability: the salary must exceed the monthly mortgage payment by 3 times;
- work experience of at least 2 years and at least 6 months at the current place of work;
- confirm the source of income: provide declarations for the last 2 years, as well as the movement of funds for the last 12 months;
- the investor must be at least 21 and no more than 70 years old at the time of application;
- the loan amount is up to 60–70% of the property value;
- the mortgage repayment period is up to 20 years.
The total income must exceed the monthly mortgage payment by 3 times. For example, if the monthly mortgage payment is 500 euros, the income should exceed 1,500 euros per month.
Documents for non-residents of Spain:
- international passport and a copy of it;
- NIE (tax number of a foreigner) of Spain;
- a property reserve agreement signed with the seller and the developer;
- the evaluator’s conclusion on the market value of the object;
- an employment contract and a salary slip for the last year;
- confirmation of additional income (if any): dividends, rental income, ownership of property etc;
- tax return for the current and previous years;
- a bank statement showing the cash flow for the last 12 months.
Additionally for business owners and sole proprietors:
- certificate of registration of the company with the name of the founder;
- the company’s balance sheet for the last 2 years.
Documents for residents of Spain (in addition to the above documents):
- verification of legal residence in Spain (residence permit);
- an extract from the main bank account in Spain;
- confirmation of regular payments for rent / utilities;
- credit history in Spain;
- employment history, income declaration and contributions to the pension fund.
We will send you a content digest not more than once a week