Mortgage for property in Spain

Mortgage for Property in Spain

Buying a property in Spain remains one of the most popular investments for international buyers. Whether you are looking for a holiday home, a retirement property or a long-term investment, obtaining a mortgage in Spain can help you reduce the amount of capital required while preserving liquidity for other investments. Spanish banks continue to offer mortgage solutions to non-residents, although the process differs significantly from many other countries. 

Understanding how Spanish mortgages work before signing a reservation contract can save you time, money and unnecessary stress.

At Mortgage in Spain® Mortgage Broker, we specialise exclusively in helping international buyers secure mortgages for properties throughout Spain, including Madrid, Marbella, Costa del Sol, Barcelona, Valencia, Alicante, the Balearic Islands and the Canary Islands. We are a mortgage broker licensed by the Bank of Spain.

Can Non-Residents Get a Mortgage for Property in Spain?

Yes.

Spanish banks regularly grant mortgages to non-residents from countries such as:

🇬🇧 United Kingdom
🇮🇪 Ireland
🇫🇷 France
🇧🇪 Belgium
🇳🇱 Netherlands
🇩🇪 Germany
🇨🇭 Switzerland
🇺🇸 USA
🇨🇦 Canada
🇦🇪 UAE
🇸🇦 Saudi Arabia

The approval process focuses on income stability, affordability and documentation rather than nationality alone. Spanish lenders analyse each applicant individually to determine the appropriate financing level. 

How Much Can You Borrow?

For non-residents, Spanish banks generally offer financing of up to 70% of the property's purchase price or valuation, whichever is lower. The remaining 30% must be contributed as a deposit by the buyer. 

In addition, buyers should budget approximately 10% to 12% of the purchase price to cover:

• Property transfer taxes
• VAT on new-build properties
• Notary fees
• Land Registry fees
• Legal fees
• Property valuation fees

Example

Property Price: €500,000

Maximum Mortgage: €350,000

Deposit Required: €150,000

Estimated Taxes and Costs: €50,000

Total Savings Required: €200,000

What Do Spanish Banks Check?

Before approving a mortgage, banks carefully analyse:

Income

Applicants must demonstrate stable and verifiable income.

This may include:

• Employment income
• Self-employed income
• Company dividends
• Rental income
• Pension income

Debt-to-Income Ratio

Spanish banks usually apply a maximum affordability ratio of 35%.

This means all monthly debts combined, including the new mortgage payment, should generally not exceed 35% of net monthly income. 

Credit History

Banks review:

• Existing loans
• Credit card commitments
• Mortgage obligations
• Credit records in the applicant's country of residence

Employment Stability

Most lenders prefer:

• Permanent employees
• Established self-employed professionals
• Company owners with stable accounts
• Retirees with predictable income

Documents Usually Required

The exact requirements depend on the country where the applicant lives and pays taxes.

Typical documents include:

Employees

• Passport
• Latest payslips
• Employment contract
• Bank statements
• Tax returns

Self-Employed Applicants

• Tax returns
• Company accounts
• Business registration documents
• Accountant certificates where applicable
• Personal bank statements

Retirees

• Pension statements
• Tax returns
• Bank statements

Preparing documentation correctly is one of the most important factors in obtaining approval quickly.

Fixed, Variable or Mixed Mortgages?

Spanish banks currently offer three main mortgage types. 

Fixed Rate Mortgage

The monthly payment remains unchanged throughout the mortgage term.

Advantages:

• Complete certainty
• Protection against rate increases
• Easier budgeting

Variable Rate Mortgage

The interest rate changes according to Euribor.

Advantages:

• Lower initial rates
• Potential savings if rates decrease

Mixed Mortgage

A fixed rate applies during the initial years followed by a variable rate.

Advantages:

• Initial stability
• Potential long-term flexibility

The most suitable option depends on your objectives, income structure and risk profile.

Why Mortgage Approval Is Not Just About Income

Many buyers assume that having sufficient income guarantees mortgage approval.

This is not always the case.

Spanish banks also analyse:

• Property location
• Property valuation
• Urban planning status
• Property type
• Existing legal issues

At Mortgage in Spain® Mortgage Broker, we often identify issues before clients commit to a reservation agreement.

This is one of the reasons why we achieve a 99% mortgage approval rate for clients who pass our initial assessment. 

Common Mistakes International Buyers Make

Paying a Deposit Before Mortgage Assessment

Many buyers reserve a property before confirming mortgage eligibility.

A professional mortgage assessment should always be completed first.

Contacting Multiple Banks Directly

Different banks specialise in different client profiles.

Approaching unsuitable lenders can lead to unnecessary rejections.

Underestimating Purchase Costs

Many buyers only consider the deposit and forget taxes and legal expenses.

Choosing a Property with Legal Issues

Some properties may have planning or registration issues that affect mortgage eligibility.

The Complete Mortgage Process in Spain

Step 1 – Financial Assessment

We analyse your profile using the same criteria applied by Spanish banks.

Step 2 – Mortgage Strategy

We identify which lenders are most suitable for your situation.

Step 3 – Documentation Review

All documents are checked before submission.

Step 4 – Mortgage Application

Applications are submitted to the most appropriate banks.

Step 5 – Property Valuation

An independent valuation is carried out.

Step 6 – Mortgage Offer (FEIN)

The bank issues the official mortgage offer.

Step 7 – Notary Transparency Appointment

The mortgage conditions are explained by the notary.

Step 8 – Completion

The mortgage and property purchase are signed before the notary.

Why Work with Mortgage in Spain® Mortgage Broker?

Mortgage in Spain® Mortgage Broker is a mortgage broker licensed by the Bank of Spain.

We specialise exclusively in mortgages for international buyers purchasing property in Spain.

Our clients come from:

🇬🇧 UK · 🇮🇪 Ireland · 🇫🇷 France · 🇧🇪 Belgium · 🇳🇱 Netherlands · 🇨🇭 Switzerland · 🇩🇪 Germany · 🇵🇱 Poland · 🇺🇸 USA · 🇨🇦 Canada · 🇲🇽 Mexico · 🇸🇦 Saudi Arabia · 🇦🇪 Dubai · 🇷🇴 Romania · 🇸🇪 Sweden · 🇳🇴 Norway · 🇩🇰 Denmark · 🇮🇹 Italy · 🇨🇿 Czech Republic · 🇱🇹 Lithuania · 🇪🇪 Estonia · 🇫🇮 Finland · 🇮🇱 Israel. 

What Makes Us Different?

• Mortgage broker licensed by the Bank of Spain (D969)
• More than 18 years of financial sector experience
• 99% mortgage approval rate after pre-assessment
• Fully online process
• Support in English, French, Dutch and Spanish
• We obtain the best mortgage offer tailored to your needs
• Assistance with NIE applications
• Independent property lawyers
• Currency exchange specialists
• Property valuation coordination
• Utility connection services
• No broker fees for the client



The bank pays our fees, so our clients never receive an invoice. 

Speak to a Mortgage Advisor Today

If you are planning to buy a property in Spain and would like to know how much you can borrow, what deposit you need and which banks are most suitable for your profile, Mortgage in Spain® Mortgage Broker can provide a personalised assessment before you commit to a purchase.

We are a mortgage broker licensed by the Bank of Spain and we help international buyers obtain the best mortgage offer tailored to their circumstances, with a fully managed process from the first assessment through to completion at the notary.