Financing Property in Spain

Spanish banks also lend to foreign buyers — but the terms differ from what you may be used to. You can typically borrow 60-70% of the property's value. Here's what you need to know about Spanish mortgages, interest rates and documentation requirements.

Non-resident mortgages from Spanish banks

Spanish banks offer loans to EU citizens who are not tax resident in Spain, and many also lend to non-EU buyers. The terms are more restrictive than for residents:

Max 60-70% of the appraised value (versus 80% for residents)
Term typically 15-25 years
Interest rate: variable (Euribor + 1-2.5%) or fixed (approx. 3-4%)
Requires a Spanish NIE number and bank account
Approval time: 4-8 weeks

Which Spanish banks offer loans to foreign buyers?

Santander, BBVA, CaixaBank and Sabadell all offer loans to non-residents. Bankinter has a dedicated international programme. Compare offers from at least 2-3 banks — interest rate differences can be significant.

Alternative 1: releasing equity back home

Many buyers finance their Spanish purchase by taking out an additional loan against the equity in their home-country property. Advantages: a lower interest rate than a Spanish loan, simpler administration, all debt consolidated at home. Disadvantage: your home property is used as security for an overseas investment.

Example: Available equity in a home-country property: 200,000 EUR → an additional loan of 135,000 EUR to finance a Spanish apartment priced at 135,000 EUR. Interest rates on home mortgages are often fixed and lower than Spanish non-resident loan rates.

Alternative 2: personal savings

A cash purchase is the simplest route — no loan approval process and a faster transaction. Spanish sellers and agents prefer cash buyers, who can often negotiate a better price.

Documents required for a Spanish mortgage

Passport and NIE number
Your last 2 years of tax returns
Payslips or annual accounts — last 3 months
Bank statements — last 6 months
Nota simple for the property
Signed arras contract