Thinking about financing your property purchase in Spain?

For many international buyers, securing a mortgage for foreign buyers in Spain is the key to turning their Mediterranean dream into reality. Spain offers competitive lending conditions, transparent laws, and access to financing even for non-residents.

However, the mortgage system works differently than in other countries, which is why understanding the process — before you apply — can save you time, money, and unnecessary stress.

This guide explains everything you need to know about getting a mortgage in Spain as a foreign buyer: requirements, documents, costs, and the full step-by-step procedure.

1. Can foreign buyers get a mortgage in Spain?

Yes — absolutely.
Spanish banks regularly offer mortgages to non-residents, and demand for financing from foreign buyers continues to grow, especially in regions like Andalusia and Costa del Sol.

However, banks classify non-residents as clients who earn income abroad, which means certain conditions differ from those applied to Spanish taxpayers.

2. How much can foreign buyers borrow?

For a mortgage for foreign buyers in Spain, banks typically provide:

• 60%–70% loan-to-value (LTV) of the property price,
• the remaining 30%–40% must be paid as your own capital,
• plus an additional 10–13% for taxes and purchase costs.

💡 Example:
If you buy a property for €500,000, expect to finance up to €350,000 and provide roughly €200,000 in total cash (deposit + taxes + fees).

3. Mortgage requirements for foreign buyers

To apply for a mortgage in Spain, you must meet several key requirements:

NIE number

Your Spanish tax identification number — essential for all legal and financial activities.

Spanish bank account

Required for transferring funds, paying the mortgage, and managing taxes.

Proof of financial stability

Banks will assess:

• your income,
• employment status or business activity,
• existing loans and spending habits,
• your credit history in your home country.

Maximum debt-to-income ratio

Most banks require that monthly debt payments do not exceed 30–35% of your net income.

4. Documents required for a mortgage in Spain

Foreign buyers typically need to provide:

• Passport or ID
• NIE number
• Last 6 months of bank statements
• Last 3–6 payslips (or company financials for entrepreneurs)
• Annual tax return (PIT)
• Credit report from your country
• Existing loan documentation
• Property reservation contract (once selected)

The Lawyers assists clients in preparing, verifying, and submitting all documents according to Spanish banking standards.

5. Types of mortgages available in Spain

Fixed-rate mortgage

Stable monthly payments, ideal for buyers wanting long-term predictability.

Variable-rate mortgage

Linked to the Euribor rate — payments may rise or fall over time.

Mixed-rate mortgage

Starts with a fixed rate for several years, then switches to variable.

Foreign buyers can choose any of these, depending on their risk profile and investment strategy.

6. What are the interest rates for foreign buyers?

Interest rates vary from bank to bank, but typical ranges include:

• Fixed rate: 2.5% – 4%
• Variable rate: Euribor + 1% – 2%

Your nationality, income stability, property type, and existing banking relationship may influence the offer.

7. Step-by-step process for obtaining a Spanish mortgage

To help you understand the journey, here is the typical sequence:

Step 1 — Mortgage pre-approval

Banks assess your financial profile and issue a preliminary approval.

Step 2 — Property selection

Once you choose the property, you sign the Contrato de Arras and pay the deposit.

Step 3 — Bank valuation (tasación)

The bank orders an official appraisal to confirm the value.
The mortgage amount will be based on the lower value of:

• the appraisal, or
• the purchase price.

Step 4 — Mortgage approval and contract

After valuation and document review, the bank finalizes the offer.

Step 5 — Signing at the notary

You sign the mortgage deed (escritura de hipoteca) and purchase deed (escritura de compraventa).
Funds are transferred to complete the transaction.

Step 6 — Registration and tax settlement

The deed is registered in the Land Registry.
The Lawyers handle all post-signing tax obligations and administrative steps.

8. Costs associated with getting a mortgage

Buyers must prepare for several costs, including:

• Property valuation: €300–€600
• Bank arrangement fees
• Insurance (home + sometimes life insurance)
• Mortgage registration fees
• Legal fees (due diligence, representation, documentation)

9. Can you get a mortgage in Spain without travelling there?

Yes.
With a power of attorney, The Lawyers can manage the entire process:

• NIE
• bank account
• mortgage application
• valuation appointments
• notarial signing
• registration

Remote purchases and remote mortgage processes are fully legal and widely used by foreign investors.

How The Lawyers support foreign buyers?

The Lawyers ensures that your mortgage for foreign buyers in Spain is safe, compliant, and aligned with your financial goals.
Our services include:

• Pre-evaluation of mortgage eligibility
• Review of all banking documentation
• Negotiation of conditions and transparency of costs
• Full representation before banks and notaries
• Complete legal due diligence on the property
• Management of taxes and registration after signing

With us, you avoid surprises, delays, and hidden clauses — every step is handled with precision.

A mortgage for foreign buyers in Spain is not only possible but often simple when guided by a professional legal team.
With the right preparation, clear documentation, and expert support, financing your property in Andalusia becomes a smooth and secure process.

👉 Thinking of buying a property in Spain?
Let The Lawyers guide you through every step — from mortgage approval to final notarial signing. Contact us.