Dreaming of buying a home in Spain? Whether it’s a sunny holiday apartment, a smart investment property, or your forever home under the Mediterranean sun, one question comes up again and again: how does a mortgage in Spain for foreigners work – and how much money do I really need to buy?

Understanding the mortgage process in Spain is crucial for international buyers. With the right knowledge, you can avoid costly mistakes and plan your purchase with confidence. In this guide, we’ll explain how mortgages work in Spain, what banks require, and exactly how much you should prepare upfront.

Can Foreigners Get a Mortgage in Spain?

Understanding the Mortgage in Spain for Foreigners

The short answer is yes, foreigners can get a mortgage in Spain. Spanish banks are open to lending to international buyers, including both EU and non-EU residents.

The main difference lies in the loan-to-value ratio (LTV):

Spanish residents – usually up to 80% of the property value.
Non-residents – typically between 50–70%.

👉 That means if you’re buying from abroad, you’ll need to cover a larger portion of the purchase price yourself. Banks prefer this lower LTV for non-residents because it reduces their risk.

It’s also important to note that banks may have different lending policies depending on your nationality, income currency, and country of residence. Some banks may be more comfortable lending to EU citizens, while others have international divisions that specialize in mortgages for Americans, Brits, or other non-EU buyers.

How Do Mortgages Work in Spain?

Spanish mortgages are relatively straightforward compared to some other European markets. Here are the key features:

Type of mortgage – Most are repayment mortgages, which means each monthly payment reduces both the loan amount and the interest owed. Interest-only mortgages are rare in Spain.
Term length – Typically between 10 and 30 years, depending on your age and financial profile.
Interest rates – You’ll usually choose between:
- Variable-rate mortgages – linked to the Euribor (the Euro Interbank Offered Rate, set by the European Central Bank). These rates can go up or down depending on economic conditions.
- Fixed-rate mortgages – offering stability and predictable monthly payments for the entire mortgage term.

💡 Tip: Variable mortgages tend to start with lower rates, but fixed-rate mortgages are becoming increasingly popular with foreign buyers who want long-term security and no surprises.

How Much Money Do I Need Upfront?

This is often the most important question for international buyers. As a non-resident, you’ll need to budget for both the deposit and the purchase costs.

Exploring a mortgage in Spain for foreigners can open doors to new lifestyle opportunities.

Deposit / Equity

Expect to provide 30–50% of the property price as your own equity.
Example: For a €300,000 property, you’ll need between €90,000 and €150,000 upfront.

Purchase Costs

On top of the deposit, allow an additional 10–15% of the purchase price for:

Property transfer tax (ITP) – typically 6–10% on resale properties, depending on the region.
VAT (IVA) – 10% if buying a new build.
Notary and Land Registry fees – usually 1–2%.
Bank arrangement fees – often 0.5–1% of the loan value.
Lawyer’s fees – highly recommended, usually around 1%.

👉 Rule of thumb: Expect to invest around 50–60% of the property value upfront when buying with a mortgage in Spain. This means if you’re buying a €300,000 home, your total upfront investment could be in the region of €150,000–€180,000.

What Documents Do Banks Ask For?

Spanish banks need to see proof of your identity, financial stability, and ability to repay. Be prepared to provide:

Passport and NIE (foreigner identification number).
Proof of income (recent payslips or tax returns).
Employment contract or proof of business ownership.
Bank statements for the last 6 months.
Details of any existing loans, mortgages, or debts abroad.

👉 Banks will also check your debt-to-income ratio. Generally, your monthly debt repayments (including the new mortgage) should not exceed 30–35% of your gross monthly income.

If you’re self-employed, expect banks to ask for additional documentation such as audited accounts or multiple years of tax returns.

Tips for a Smooth Mortgage Process

Buying property in Spain with a mortgage doesn’t have to be complicated. Here are some practical tips to make the process easier:

Get pre-approved early – Pre-approval from a Spanish bank shows sellers you’re a serious buyer and gives you a clear budget to work with.
Plan for currency exchange – If your income is not in euros, use a specialist currency service to avoid costly fluctuations.
Hire local experts – A lawyer can guide you through the paperwork, check contracts, and protect your interests. A mortgage broker can help you compare offers across different banks.
Know the regional differences – Taxes vary depending on whether you buy in Andalusia, Valencia, Catalonia, or Madrid. Always factor this into your cost calculations.

✨ And remember: a Spanish home isn’t just an investment in property – it’s an investment in lifestyle.

Many have successfully navigated their mortgage in Spain for foreigners and are now enjoying their new homes.

Mortgage in Spain for Foreigners: Everything You Need to Know