Spanish banks do lend to non-residents, but usually 60–70% of the value, not the 80% residents get. What the lender will ask for, what it costs, and where deals go wrong.
Spain is one of the easier European markets for a foreign buyer to finance, but the terms are not the ones a resident sees. Our general guide to mortgages for non-residents covers the basics across countries; this one goes deeper on Spain. All figures below are indicative, drawn from 2026 lender and legal-adviser sources, and change with the market.
How much Spanish banks lend non-residents
- Loan-to-value for non-residents is commonly capped at around 60–70% of the lower of the price and the bank's own valuation. Non-EU buyers are often offered less, roughly 50–60%. A few banks go higher for buyers from countries where they have strong ties.
- That means a deposit of about 30–40% of the price, plus purchase costs (see below).
- Terms are typically 15–25 years, and most banks want the loan repaid by the time you are about 70–75.
- Banks usually test total debt payments, including loans in your home country, against roughly 35% of net monthly income. This is a lender rule of thumb, so it varies.
Rates in 2026
Spanish mortgages come as fixed, variable (a margin over 12-month Euribor, recalculated annually) or mixed (fixed for 5–10 years, then variable). Twelve-month Euribor has been reported at roughly 2.8–2.9% in mid-2026. Reported non-resident pricing is roughly Euribor plus 1.0–1.5% on variable loans and roughly 3–4.5% on fixed loans, depending on profile and loan size. The lowest advertised rates usually depend on bundled products such as insurance, a payroll account or cards, which a non-resident may not be able to take up.
Documents the bank will ask for
- Passport and NIE (the foreigner identification number, required before a mortgage can proceed) and a Spanish bank account
- Several years of tax returns from your home country, typically up to three
- Around six months of bank statements
- Recent payslips, an employer letter or contractor invoices; self-employed borrowers should expect to show two to three years of certified accounts
- Details of existing loans and, often, a home-country credit report
Foreign-language documents may need translation, and sometimes an apostille. Pre-approval is often reported at 5–15 working days, full approval at 4–8 weeks once a property is identified.
What you pay on top of the deposit
- Resale home: transfer tax (ITP) is set by region. Reported general rates are 6% in Madrid, 7% in Andalucía, and 10% in Valencia and in the first bracket in Catalonia. Reduced rates exist for specific groups (young buyers, low-priced first homes) and non-residents rarely qualify.
- New build from a developer: 10% VAT (IVA) on the mainland plus stamp duty (AJD), typically 0.5–1.5% depending on the region.
- Notary, land registry and legal fees come on top. Advisers commonly suggest budgeting roughly 10–13% of the price above the deposit.
- Under the 2019 mortgage law (Ley 5/2019) the lender pays the notary fee for the mortgage deed, the registry fee for registering it, the gestoría, and the stamp duty on the mortgage deed. The borrower pays the valuation, usually a few hundred euros.
- Early repayment fees are capped by law: for variable-rate loans 0.25% of the amount repaid in the first three years (or 0.15% in the first five, depending on the contract), for fixed-rate loans 2% in the first ten years and 1.5% after. Check the specific contract.
Pitfalls to avoid
- The valuation can come in below the price. The bank lends against the lower figure, so you cover the gap in cash.
- Signing a reservation or deposit contract before financing is approved. Make the purchase conditional on mortgage approval, or be sure you can pay without it.
- Spanish mortgages are full-recourse: you stay personally liable if a forced sale does not cover the debt.
- Currency mismatch. A euro loan serviced from income in another currency carries exchange-rate risk.
- Opening the NIE and bank account late. They are prerequisites and can delay completion.
FAQ
Can a non-resident get a Spanish mortgage? Yes, but with a lower LTV than residents. How big a deposit do I need? Plan on about 30–40% of the price plus roughly 10–13% for taxes and fees. Do I need a Spanish bank account? Yes, in practice, and an NIE. Who pays the mortgage costs? Under the 2019 law the lender covers most of them; you pay the valuation. Can I repay early? Yes, subject to the legal fee caps above.
How we help
We connect buyers with brokers and banks that lend to non-residents and structure the purchase around realistic financing. This is general information, not financial, tax or legal advice: rates, LTV limits and taxes change and differ by lender and region, so confirm current terms with a licensed broker and a Spanish lawyer before committing.