How mortgages work in Spain

Spain offers three main mortgage structures: variable rate (tipo variable, indexed to Euribor + spread), fixed rate (tipo fijo), and mixed rate (tipo mixto, fixed for an initial period then variable). The mixed mortgage is unique to Spain and growing in popularity.

A NIE (Número de Identidad de Extranjero) is required for all property transactions. Allow 6–10 weeks to obtain one through a Spanish consulate or in-person at a Comisaría. This is the most common cause of delay for foreign buyers — apply early.

Transfer tax (ITP) varies dramatically by region: 6% in the Basque Country, up to 11% in Valencia. New builds are subject to IVA (10%) instead of ITP, plus AJD (stamp duty) of 0.5–1.5%.

Getting a mortgage as an expat in Spain

Spain is one of the most accessible property markets in Europe for foreign buyers, and Spanish banks are generally well-set-up for non-resident lending. There are no legal restrictions on non-resident ownership.

LTV limits for non-residents

Residents can usually borrow up to 80% of the assessed property value. Non-residents are limited to 50–70% LTV depending on the bank, the property, and the borrower’s profile. Plan on a minimum 30% deposit as a non-resident to be confident of approval. Your mortgage term cannot extend past your 75th birthday with most lenders.

Which banks lend to non-residents?

Spain’s largest banks all have dedicated international divisions. Santander offers a specific Non-Resident Mundo Mortgage with English-speaking support and an online simulator. CaixaBank (HolaBank) accepts documents in the applicant’s own language for initial pre-approval. BBVA offers a fully digital application and publishes its non-resident terms clearly. Sabadell and Bankinter also have established programmes for foreign buyers.

How foreign income is assessed

Foreign income is accepted by Spanish lenders, though assessment varies by currency and country. Payslips, tax returns, and bank statements from the last two to three years are required. Self-employed applicants need audited accounts. Income in currencies other than euros may be assessed conservatively; some banks apply a haircut of 10–20% to account for exchange rate risk.

What documents are needed

A standard non-resident application requires:

• Valid passport or national ID
• NIE (Número de Identidad de Extranjero)
• Last three months’ payslips or equivalent income evidence
• Last two years’ tax returns
• Last three months’ bank statements
• Details of any existing credit commitments
• Property details and preliminary purchase contract (contrato de arras) if already signed

All documents not in Spanish must be accompanied by an official translation.

Using a mortgage broker

A Spanish mortgage broker can compare offers across multiple lenders simultaneously. This is particularly useful for non-residents who may not be familiar with the local market. Broker fees are typically paid by the bank, not the borrower.

More information: Mortgages in Spain: home loans and interest rates in 2026

Buying costs beyond the mortgage

Budget 10–13% of the purchase price on top of your deposit.