Spanish mortgage for non-residents: how it works

How much will a Spanish bank lend a non-resident?

Spanish lenders are more cautious with non-residents: they can't see your full credit history and your income is in another country and often another currency. In practice, non-residents are commonly offered around 60–70% of the lower of the purchase price and the bank's valuation. Some applicants and properties get less. Residents are typically offered more.

Banks also look at affordability. Most want your total debt payments, including the new mortgage, to stay well within your net income, and many set a maximum age at the end of the term. Ask each lender for its limits.

Documents you'll need

• Passport and NIE.
• Proof of income: recent payslips and employment contract, or two to three years of accounts and tax returns if self-employed.
• Your latest tax return from your country of residence.
• Bank statements, usually the last six months, and statements for existing loans and mortgages.
• A credit report from your home country.
• Proof of the deposit and where it comes from.
• The reservation or arras contract and property details, including the referencia catastral and a nota simple.

Some banks ask for official translations of foreign documents. Having everything ready before you make an offer can save weeks, and a complete file makes it easier to compare offers from more than one bank on the same terms.

Fixed, variable or mixed?

• Fixed (tipo fijo): the same rate for the whole term. Predictable payments, and you're protected if rates rise.
• Variable (tipo variable): Euribor plus a fixed margin, usually reviewed every 6 or 12 months. Payments go up and down with Euribor.
• Mixed (tipo mixto): fixed for an initial period, then variable.

Euribor is the rate at which eurozone banks lend to each other. The 12-month Euribor is the usual reference for Spanish mortgages, and its official monthly averages are published by the Banco de España. It moves, so check the current figure before comparing offers. Banks often cut the margin if you take products such as salary deposit, life insurance or home insurance. Ley 5/2019 lets them require insurance for the property and the loan, but they must accept an equivalent policy from another insurer.

If your income is in pounds or dollars, remember currency risk: a weaker pound makes a euro mortgage more expensive. Loans in a currency other than the euro have specific protections under the law, but most non-residents borrow in euros.

The bank valuation (tasación)

The bank requires an official valuation by an approved appraisal company. You pay for it, typically €300–€600, and the bank must accept a valid valuation you've commissioned from an approved firm. The valuation also checks basic legal points, such as whether the property matches the Registry and Catastro. Problems here often point to the same issues your lawyer should look at.

Ley 5/2019: who pays what

The mortgage credit law (Ley 5/2019) changed the rules for Spanish home loans. Under article 14:

The law also requires the lender to give you the binding offer (FEIN), a standard warnings sheet (FiAE) and the draft contract at least 10 calendar days before signing. Before signing you must see the notary, who explains the terms free of charge and records that you received the documents. It also caps the fees banks can charge for early repayment.

The purchase itself still carries costs for you: see the cost of buying property in Spain.

Should you use a mortgage broker?

A broker can compare several Spanish banks, knows which lend to your nationality and income type, and can handle translations. In Spain, mortgage intermediaries must be registered with the Banco de España or the relevant regional authority; ask for their registration and check the fee. Brokers typically charge the borrower, either a fixed fee or a percentage of the loan, and must tell you before you commit. Applying directly to a bank is free but slower if you approach several.

Timeline

1. Agreement in principle: 1–2 weeks after you send income documents.
2. Offer accepted, arras signed: give yourself enough time before completion; 6–8 weeks is safer than 4.
3. Valuation and underwriting: 2–4 weeks.
4. Binding offer (FEIN): at least 10 calendar days before signing, plus the notary visit.
5. Completion: purchase deed and mortgage deed are signed the same day at the notary.

A bank will only lend on a property with clean paperwork. Before applying, you can put the address or referencia catastral into our free property check and we'll get back to you by email. For the full process, see buying property in Spain.