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Mortgage Options for Foreign Buyers in Spain: A Complete Guide

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Can Foreigners Get a Mortgage in Spain?

Yes. Non-residents are eligible for mortgages in Spain, and banks on the Costa del Sol are especially familiar with international clients. Many lenders have English-speaking staff and products tailored to expats. The main difference lies in the loan-to-value (LTV) ratio and the documentation required.

How Much Can You Borrow?

  • Spanish Residents: Up to 80% of the property value (depending on income and credit history).
  • Non-Residents: Typically 60–70% of the property value.
  • Loan Terms: Usually up to 20–25 years for non-residents (residents may get longer terms). 💡 Tip: Spanish banks calculate the mortgage based on the lower of the purchase price or the bank’s valuation of the property.

Types of Mortgages Available

  1. Variable-Rate Mortgages
  • Linked to the Euribor (Euro Interbank Offered Rate) plus a bank margin.
  • Monthly payments can rise or fall depending on interest rates.
  • Most common option for non-resident buyers.
  1. Fixed-Rate Mortgages
  • Fixed interest rate for the entire loan term.
  • More predictable payments, which many foreign buyers prefer for budgeting.
  1. Mixed Mortgages
  • Combine both options: fixed rate for the first few years, then switch to variable.
  • Useful if you want stability at the start and flexibility later.

Eligibility Requirements for Foreign Buyers

When applying for a mortgage in Spain as a non-resident, banks will typically ask for:

  • Passport or national ID
  • NIE (Número de Identificación de Extranjero – foreigner’s ID number in Spain)
  • Proof of income (payslips, employment contract, or tax returns)
  • Bank statements (last 3–6 months)
  • Credit report from your home country
  • Details of existing debts or loans 👉 As a rule, Spanish banks expect your total monthly debt (including the new mortgage) not to exceed 30–35% of your net monthly income.

Additional Costs to Consider

Foreign buyers should budget around 10–12% of the purchase price for extra costs, including:

  • Taxes (ITP for resale, VAT for new builds)
  • Notary and Land Registry fees
  • Bank arrangement fees (usually 1–2% of the loan amount)
  • Property valuation costs

Practical Tips for Foreign Buyers

  • Shop Around: Different banks offer different rates—compare before committing.
  • Use a Mortgage Broker: Many brokers on the Costa del Sol specialize in helping foreign clients secure the best deals.
  • Consider Currency Risk: If your income is not in euros, exchange rate fluctuations may affect affordability.
  • Pre-Approval Helps: Getting pre-approved before house-hunting makes you a stronger buyer in negotiations.

Final Thoughts

Mortgages for foreign buyers in Spain are widely available, but the terms are stricter than for residents. Non-residents can usually borrow up to 70% of the property value, with loan terms up to 25 years. By preparing the right documents, budgeting for extra costs, and comparing banks carefully, you can secure financing with confidence and make your Costa del Sol property dream a reality.