Spanish Mortgage FAQ for Non-Residents

Yes. Spanish banks lend to non-residents as ordinary business, and you do not need to live in Spain, hold an EU passport or have any previous connection to the country. What you need is documented income, a deposit large enough for the loan-to-value on offer, and a property the bank can take clean security over.

The practical difference from a mortgage at home is the size of the deposit and the volume of paperwork, not whether you qualify.

Complete guide →

No. Nationality is not a lending criterion in itself. Buyers from the UK, the United States, Switzerland, Norway and elsewhere outside the EU are financed routinely.

What nationality does affect is the paperwork: the documents a bank asks for, and how easily it can verify them, differ by country. Some lenders are more comfortable with certain jurisdictions than others, which is one of the things a broker sorts out before the application rather than after a decline.

No. British buyers still have full access to Spanish mortgage credit on the same terms as other non-residents.

What Brexit changed is residency and tax status — how long you can stay without a visa, and how you are treated for Spanish tax — not the availability or pricing of the loan. Guide for UK buyers →

Yes. Pension income is accepted by Spanish lenders, and a state or occupational pension paid for life is regarded as stable, predictable income — in some ways easier to assess than self-employed earnings.

The constraint is age rather than income type. Lenders generally want the loan repaid by age 70 to 75, so a borrower in their mid-sixties is looking at a shorter term and therefore a higher monthly payment for the same amount borrowed.

Mortgages on pension income →

Most lenders want the mortgage fully repaid by the time you are 70 to 75. There is no fixed maximum age to apply, but that repayment deadline sets your term.

So a 55-year-old might get 20 years, while a 65-year-old is more likely to be offered around 10. Because the term drives the monthly payment, and the payment drives affordability, age often limits how much you can borrow before loan-to-value does.

Yes, but expect a lower loan-to-value — typically 50–60% rather than 60–70% — and more documentation.

Banks will normally want two to three years of accounts or tax returns and will lend against your declared, taxed profit rather than turnover or retained company earnings. If your accountant has efficiently minimised your declared income, that is the number the bank uses.

Why applications get declined →

Yes. Joint applications are standard, and both applicants' incomes and existing debts are assessed together.

Both parties will need a NIE, both will provide a full document set, and both will normally need to be on the deed as owners and at the notary — or represented there by power of attorney. Adding a second applicant with income raises affordability; adding one with debts can reduce it.

No. Spanish banks cannot see your UK, German, Dutch or Irish credit file, and there is no shared score between countries.

That cuts both ways. A good domestic record does not help you automatically — you have to evidence it yourself, usually with a credit report you obtain and supply — and a poor one is not automatically visible. What Spanish lenders do check is ASNEF, the Spanish defaults register, and the Banco de España credit register for any Spanish borrowing.

What to supply →

Yes. An existing mortgage does not disqualify you; it is simply counted as a commitment when the bank works out what you can afford.

Spanish lenders assess total debt service — the new Spanish payment plus everything you already pay — against your net income. A large home mortgage therefore reduces the Spanish loan you qualify for, even where your income is high.

No. Buying property and borrowing against it are open to non-residents with no visa or residence permit.

You will need a NIE number, which is a tax identification number rather than a residence permit. Whether you may then live in the property for extended periods is a separate immigration question that has no bearing on the mortgage. How to get an NIE →

Mainly the loan-to-value: a Spanish tax resident can generally borrow up to around 80% of the valuation, a non-resident typically 60–70%.

Spanish tax residence is broadly a matter of spending 183 or more days a year in Spain or having your main centre of economic interests here — not of nationality or of owning property. An EU citizen who lives and works elsewhere is a non-resident borrower.

Resident vs non-resident →

Typically 60–70% of the bank's valuation if your income is employed and straightforward, and 50–60% if you are self-employed or your income is complex.

Note the wording: a percentage of the valuation, not of the price. If the two differ, the bank uses the lower figure, and the gap comes out of your own cash.

How the valuation works →

No, not as a non-resident buying on the open market. Plan on a maximum of 70% of the valuation, and remember that purchase costs of roughly 9–11% on a resale or 12–14% on a new build sit on top of your deposit in cash.

The exceptions people have heard about are bank-owned repossessed stock, occasionally sold with higher financing attached, and Spanish tax residents, who can reach around 80%. Neither is a route to a 100% loan on the property you have chosen.

By comparing your total monthly debt payments — the new Spanish mortgage plus every existing loan, card and mortgage — against your net monthly income.

Most lenders work to a ratio in the region of a third of net income, and they stress the calculation at a rate higher than the one you are offered. The property's running costs, including IBI and community fees, are counted too.

Generally no. Spanish lenders will usually lend on a property you intend to let, but most will not count the expected rental income towards affordability. They assess the loan against your existing income as though the property earned nothing.

If your plan depends on rental yield covering the mortgage, the bank does not share that assumption, and you need the income to stand on its own.

Typically 20 to 25 years for non-residents, subject to the loan being repaid by age 70 to 75.

Spanish tax residents can often get longer. The age rule usually bites first: whatever the headline maximum, your term is the number of years between now and the lender's repayment age limit.

Usually it reduces it, and it narrows the number of lenders willing to look at the file at all.

Fewer Spanish banks lend to non-resident corporate buyers, and loan-to-values are typically lower. It also changes the tax analysis substantially, so take advice from a tax adviser on whether the structure is right before asking whether it is financeable.

Buying through a company →

No — usually the opposite. Affordability is assessed on the income of the people on the application, so removing an earner removes their income.

Sole ownership is sometimes chosen for tax or succession reasons, which is a question for your lawyer and your tax adviser, but it is not a route to a larger loan.

Plan for 30–40% of the purchase price, because lenders typically finance 60–70% of their own valuation.

Then add the purchase costs on top, in cash: roughly 9–11% of the price on a resale and 12–14% on a new build. A realistic total for a €400,000 resale is therefore in the region of 40–50% of the price available in cash.

Full cost breakdown →

Around 9–11% of the price on a resale and 12–14% on a new build, on top of your deposit.

The components are transfer tax at 7% on a resale, or 10% IVA plus 1.2% AJD on a new build; notary fees of roughly 0.1–0.5%; land registry of roughly 0.1–0.25%; legal fees of about 1% plus VAT; and the mortgage valuation at €300–600.

See the cost table →

Transfer tax (ITP) at 7% of the declared price. It is the single largest purchase cost on a second-hand home.

ITP is set regionally, so the rate differs elsewhere in Spain. It is payable shortly after completion and cannot be added to the mortgage.

10% IVA (VAT) plus 1.2% AJD stamp duty in Andalucía, instead of transfer tax.

The VAT is paid to the developer with the price; the stamp duty is paid separately after signing. Together they are why new-build purchase costs run higher than resale ones.

The bank pays most of them. Under Ley 5/2019 the lender pays the stamp duty on the mortgage deed and most of the notary and land registry costs relating to it.

You pay for the valuation, and for any arrangement fee the lender charges on the loan itself. The purchase taxes and your own legal fees are separate and remain yours.

No. Spanish lenders size the loan against the valuation of the property, not against the price plus costs, so taxes and fees must come from your own funds.

This is the point at which foreign buyers most often find themselves short, because in several other countries costs can be folded into the loan. In Spain they cannot.

Two main ones: IBI, the annual municipal property tax, and IRNR, non-resident income tax, which applies whether or not you let the property.

Where the property is let you are taxed on the rental income; where it is kept for your own use you are taxed on an imputed notional income. Rates and deductions depend on your country of residence and the applicable treaty, so take this to a tax adviser rather than to us.

Usually yes in practice, but you should not sign the 10% deposit contract before you know the mortgage is realistic.

The reservation fee is comparatively small and buys you the time to make checks. The arras contract that follows puts around 10% of the price at risk if you cannot complete. Get an assessment in between those two steps, not after both.

Sometimes, but it is materially harder and the loan-to-value is usually lower.

Property on suelo rústico is harder to value and harder to sell, and a significant number of inland houses have an irregular planning status that lenders will not accept as security. The legal position of the building has to be established before a bank will consider it, so raise a country purchase at the outset.

Inland and rural buying →

Yes, but the mortgage is only drawn at completion, which may be a year or two away. In the meantime you pay the developer in stages from your own funds.

Those staged payments must by law be protected by a bank guarantee or insurance policy; check the document exists rather than assuming it does. A mortgage offer issued today will not be the one available when the building finishes, so the useful exercise now is establishing what you would qualify for.

Buying off-plan →

You make up the difference in cash. The bank lends a percentage of its own valuation, so a low valuation reduces the loan, not the price.

On a €400,000 purchase valued at €370,000 with a 70% loan, you receive €259,000 rather than €280,000, and find the extra €21,000 yourself. The alternatives are renegotiating with the seller, or withdrawing if your contract allows it.

How valuations work →

Typically six months from the date of the report.

That matters on off-plan purchases and on any sale that drags, because a valuation that expires before completion has to be redone at your cost. It is also why ordering the valuation too early can be a false economy.

Usually not until the licence is issued. Lenders normally require the licencia de primera ocupación before releasing funds on a new build.

This is one of the standard reasons off-plan completions slip: the building is finished but the town hall has not issued the paperwork. It is a delay rather than a refusal, but it can be a long one.

Yes. Spanish lenders will generally finance a second home you intend to let, though they will not count the expected rental income towards affordability.

Separately, holiday letting in Andalucía requires registration with the regional tourism register, and some communities of owners restrict or prohibit it. That is a question for your lawyer, but it affects whether the plan works.

Rarely as a non-resident. Self-build and land mortgages are a specialist product in Spain, and most lenders restrict them to residents.

Where a lender will consider it, expect a low loan-to-value on the land, staged release against certified construction progress, and a requirement that the plot is classified as urban with planning permission in place.

Yes, in most cases. Banks lend against security they could sell, and a property that cannot lawfully be occupied is poor security.

Renovation projects, properties without utility connections and buildings with unregistered extensions all cause problems. If you are buying something to restore, say so early — it changes which lenders are worth approaching.

Identity, income, assets and debts: passport and NIE, recent payslips or business accounts, tax returns, several months of bank statements, evidence of your existing borrowing, and details of the property.

Banks want a complete set, not most of it. Partial files are the most common cause of slow decisions, because the clock restarts each time something is missing.

Full document checklist →

Not to start, but you must have one before completion. You cannot sign the deed, pay the purchase taxes or register the property without it.

Lenders will often begin assessing a file without it, but apply as early as you can — a missing NIE is the single most common cause of a completion date being missed.

How to get an NIE →

Yes, in practice. You will need one for the notary, the taxes, the utilities and the community fees, and the lender will want your mortgage payments taken from an account it can see.

Opening one requires your NIE and proof of income. Do it early rather than in the week of completion. Opening an account →

Sometimes. Banks usually accept standard payslips and bank statements in English, French or German, but official documents such as court orders, divorce settlements or powers of attorney generally need a sworn translation.

Where a document is issued abroad for use in Spain it may also need an apostille. Your lawyer will tell you which items on your list need which treatment.

Yes, through a power of attorney (poder notarial), which is common and entirely routine.

It can be granted before a Spanish notary while you are here, or before a notary in your own country with an apostille and a sworn translation. The second route takes longer, so start it well before the completion date.

Power of attorney →

Yes. Use an independent Spanish lawyer, not one recommended by the seller or the agent selling you the property.

The notary is neutral and acts for the transaction, not for you. Your lawyer checks the registry position, the planning status, the community debts and the contract terms — none of which is part of our job or the bank's.

Recent enough that the newest item is within the current or previous month when the file goes in. Banks generally want three to six months of statements and the last three payslips.

Because documents age while a purchase proceeds, expect to be asked for a refreshed set if the process runs long. Keeping a folder up to date saves a fortnight later.

Yes. Anti-money-laundering rules require the source of funds to be evidenced, and this applies to the notary and your lawyer as well as the lender.

A sale of a property, an inheritance, accumulated savings or a gift are all fine; what is needed is a documented trail. Large unexplained transfers into your account shortly before purchase will hold things up.

Fixed if certainty matters more to you than the lowest possible starting payment; variable if you can absorb the movement and expect to repay or sell early.

Spanish variable rates are priced as Euribor plus a fixed margin, reviewed periodically, so the payment moves with the benchmark. Fixed rates in Spain are usually fixed for the whole term rather than an introductory period, which makes them a genuinely different proposition from a UK two-year fix.

Fixed vs variable →

Euribor is the benchmark rate at which European banks lend to each other, and it is the reference for almost every variable Spanish mortgage.

Your rate is Euribor plus the margin agreed in your deed. At each review — typically annual or half-yearly — the current Euribor is applied and your instalment recalculated. The margin itself never changes.

TIN is the bare interest rate used to calculate your payments. TAE is the annual percentage rate, which includes fees and compounding, so TAE is the number to compare between offers.

Where a lender discounts the rate in return for insurance or other products, compare the TAE of the bundled version against the TAE of the standalone version. Under Ley 5/2019 the lender must quote both.

Not by law, but in practice most lenders will want it, and many price the loan more attractively when you take it.

Buildings insurance covering the structure is effectively obligatory, since the bank's security is the building. What the lender cannot do is force you to buy its own policy: you may take equivalent cover elsewhere.

Insurance requirements →

No. Ley 5/2019 prohibits tying products to the loan. It does permit bundled offers — a better rate in return for taking insurance, a salary account or a pension plan — provided the lender also quotes the loan standalone.

So you always have the unbundled option, and can compare the two. Whether the bundle is worth it depends on what the products cost you elsewhere, which is worth pricing before you accept.

Very rarely. Spanish mortgages on Spanish property are euro loans, and sterling or dollar mortgages secured on Spanish property are a specialist product outside the mainstream market.

If you earn in another currency, the practical consequence is that your monthly cost moves with the exchange rate even though the payment in euros is fixed. That is a real risk and worth planning for. Currency risk →

Not as a standard product for non-residents. Spanish residential mortgages are almost always capital and interest over the full term.

Some lenders allow a short initial grace period on capital, particularly on new build, but a full interest-only loan of the kind common in the UK buy-to-let market is not part of the ordinary Spanish offering.

It varies by lender, and some charge none at all. It is quoted as a percentage of the loan and appears in the binding offer.

Compare it through the TAE rather than in isolation: a loan with no fee and a higher margin can cost more over the term than one with a modest fee and a lower margin.

Four to eight weeks from a complete document set to a binding offer, plus the valuation and the notary steps.

The variable is almost always the documents. Files that arrive complete move at the fast end of that range; files assembled piece by piece take considerably longer, because each gap sends the case back to the queue.

The full timeline →

Send us the enquiry form on this page. We will come back with which lenders are likely to consider you, at what loan-to-value, and what the whole purchase will cost you in cash.

Do it before you sign a reservation or pay a deposit. That is the point at which the answer changes your decisions rather than confirming them.

Start here →

You can get a decision in principle, which tells you what a lender would lend you, but not a binding offer — that requires a specific property and its valuation.

A decision in principle is still worth having. It sets your realistic budget, it removes the risk of committing to a deposit you cannot finance, and it makes you a more credible buyer when you negotiate.

Reservation, then the arras deposit contract, then the mortgage application and valuation, then the binding offer, then the notary visit and completion.

Mortgage work should start before the arras rather than after it, because that is the contract that puts your money at risk. Getting the sequence right is most of what protects you.

Step by step →

Two appointments, not one. First a pre-signing visit where the notary checks you have received and understood the binding offer, followed by a cooling-off period required by Ley 5/2019. Then the signing itself.

At the signing the notary verifies identities, checks the registry position on the day, reads the deed, and witnesses the payment and handover of keys. The mortgage deed is signed at the same appointment.

What to expect →

No, if you grant a power of attorney to someone who can attend for you, which is usually your Spanish lawyer.

Many buyers prefer to attend, and the notary appointment is not long. But the power of attorney is the standard solution where dates move, as they frequently do.

Most often for incomplete documentation, affordability once existing debts are counted, unverifiable or recently established self-employed income, age against the term, or a property with a legal or planning problem.

Almost all of these are visible in advance. A decline is usually a case that was sent to the wrong lender, or sent before it was ready.

Why applications fail →

Yes, and it is usually sensible. There is no central register of applications that penalises you for approaching several lenders in Spain.

The practical limit is the work: each bank wants its own file and, if you let it, its own valuation. We put one prepared file to several lenders and compare what comes back, which avoids paying for the same valuation twice.

Usually nothing breaks, provided the binding offer and the valuation are still in date. Valuations are typically valid six months.

Tell us as soon as a date slips. Re-dating documents and extending an offer is straightforward with notice and awkward without it.

Yes. Spanish law caps early repayment compensation, and on many loans it is low or nil after the first years, which makes overpaying more attractive than in several other countries.

The exact cap depends on whether your rate is fixed or variable and when in the term you repay, and it is set out in your deed. Ask before you sign if you expect to repay early.

The mortgage is repaid out of the sale proceeds at the notary, and the charge is cancelled at the land registry.

Budget for any early repayment compensation due under your deed, and for the cost of formally cancelling the registered charge, which is a separate step from repaying the debt. An uncancelled charge will hold up your buyer.

Yes, by subrogación de deudor, if the lender agrees and the buyer qualifies. It can save the buyer some cost and is common on new build.

The bank assesses the incoming borrower as it would any applicant, so it is not automatic. Subrogación and novación →

Yes, by subrogación de acreedor — transferring the loan to a new lender — or you can renegotiate with your current bank by novación.

Which is cheaper depends on the fees each route attracts and on whether your existing bank will match the offer. Getting a competing offer is what makes the conversation with your current lender productive.

Remortgaging in Spain →

Sometimes, but it is harder than a purchase mortgage for a non-resident, and fewer lenders offer it.

Where it is possible, expect a lower loan-to-value than on a purchase and a clear question about what the money is for. Raising funds against a Spanish property to spend elsewhere is not a proposition every lender likes.

Contact the bank immediately. Spanish lenders charge default interest and, if arrears build, can eventually enforce against the property through the courts.

Missed payments on a non-resident account are most often the result of an empty Spanish current account rather than genuine difficulty, so keep a buffer in the account the direct debit draws on.

Yes. Non-resident owners have annual IRNR obligations whether or not the property is let, alongside the IBI bill from the town hall.

Use a Spanish tax adviser, or one in your own country familiar with the treaty. This is outside our remit and we do not give tax advice.

No. We charge the client nothing. We are remunerated exclusively by commission paid by the lender on completion, and that is disclosed to you in writing before you are bound by anything.

If the mortgage does not complete, nobody pays us. How we work →

No. We are an independent real estate credit intermediary — intermediario de crédito inmobiliario no vinculado — under Ley 5/2019, which means we are not tied to any single lender.

We put your file to several banks and compare what comes back, which is the point of using an intermediary rather than walking into a branch.

Yes, entirely. Every conversation, document explanation and lender negotiation is handled in English.

The bank's own documents will be in Spanish, because they must be, and we go through them with you before anything is signed.

Often, yes. A decline at one bank is not a decline everywhere — criteria differ substantially, particularly on self-employed income, age and property type.

Tell us what was said and we will tell you honestly whether another lender is likely to see it differently or whether the answer is the same everywhere.

Common reasons →

No. We arrange mortgages. Tax questions belong with a tax adviser in your own country or in Spain, and conveyancing and planning questions belong with an independent Spanish lawyer.

We will tell you when a question is one of those, rather than guess at it.

The enquiry form on this page, which takes about a minute: budget, nationality, deposit available and how to reach you.

From there we will ask for the income and identity documents that the lenders we think fit your case will want. The checklist →