Non-residents can get Spanish mortgages up to 60-70% LTV. Current fixed rates around 3-3.5%, variable rates at Euribor + 0.4-0.8%. Approval takes 4-6 weeks. You'll need ID, tax returns, bank statements, and proof of income. Use a broker to access all banks with one application.
Getting a mortgage in Spain as a foreigner is entirely possible and often makes financial sense even if you have cash - thanks to wealth tax deductions and historically low interest rates. This guide covers everything from which banks offer the best rates to exactly what documents you'll need.
Can Foreigners Get Mortgages in Spain?
Yes, absolutely. Spanish banks actively lend to non-residents and have dedicated international departments for foreign buyers.
** 'Resident' for mortgage purposes means fiscal resident in Spain, not just owning property there.
Current Interest Rates 2026
Fixed rate mortgages:
Variable rate mortgages:
Mixed products:
ECB rate cuts in late 2025 stabilized Euribor after its 2023-2024 peak. Rates are expected to remain stable in 2026 with possibility of slight decreases. Fixed rates remain attractive for long-term security.
Required Documents
Identity documents:
Financial documents:
If self-employed:
Property documents:
Existing commitments:
Tips:
Tips:
Which Bank to Choose?
Each Spanish bank has different criteria and strengths:
Santander:
BBVA:
CaixaBank:
Sabadell:
Bankinter:
Use a mortgage broker who works with all banks. They know current criteria and rates, saving you multiple applications and potential rejections that affect your credit profile.
Why Finance Even With Cash?
Spanish wealth tax (Impuesto sobre el Patrimonio) applies to property value above €700,000 (varies by region). A mortgage taken at purchase is deductible from this calculation.
Example: €1.5M property with €500k mortgage:
Critical: Mortgage must be in place at time of purchase. You cannot refinance later and claim the deduction.
Keep capital available for:
Unlike UK/USA, releasing equity from Spanish property later is very difficult. Get finance at purchase or miss the opportunity.
With rates around 3%, the after-tax cost of borrowing is often less than investment returns.
The Application Process
Step 1: Initial Assessment (Day 1-3)
Step 2: Full Application (Day 3-10)
Step 3: Valuation (Day 10-20)
Step 4: Formal Offer (Day 20-30)
Step 5: Completion (Day 30-45)
Timeline varies:
Timeline varies:
Costs and Fees
Since June 2019, banks pay most mortgage costs:
Buyer still pays:
Ongoing costs:
Hidden costs to watch:
Hidden costs to watch:
Common Problems and Solutions
Income not accepted:
Low valuation:
Complex ownership:
Age limits:
Credit history:
Credit history:
The Bottom Line
Getting a Spanish mortgage as a foreigner is straightforward with proper preparation. Use a broker to access all banks, prepare documents thoroughly, and consider the tax benefits of financing even if you have cash. The key is starting the process early - ideally before you've found your perfect property, so you know exactly what you can borrow.
Interested in properties in this area? Book a free 30-minute consultation with our team — with over 12 years of experience, we'll help you find exactly what you're looking for.