November 09, 2026

Can Foreign Buyers Get a Mortgage in Spain? Absolutely!

Many people dreaming of owning a property in Spain assume they need to finance the entire purchase with their own savings or release equity from a property back home. But there is actually a third option: taking out a mortgage directly with a Spanish bank. And this is entirely possible even if you are neither a Spanish citizen nor a resident of Spain.

How Much Can You Borrow?

The main difference depends on whether or not you are a resident of Spain. Those who live permanently in Spain and earn their main income here can often borrow up to 80% of the property's value. For non-resident buyers, the limit is typically 60–70%.

Banks generally base the loan amount on the lower of the purchase price and the official property valuation. For example, if you buy an apartment for €300,000 and the bank approves a 70% mortgage, you could borrow up to €210,000, provided the valuation is not lower than the purchase price.

You will need to cover the remaining amount yourself. On top of this, there are additional costs for taxes, notary fees, property registration and legal assistance, which typically amount to around 10–13% of the purchase price when buying a resale property in Andalusia.

What Do Banks Look At?

Just like in other countries, Spanish banks want to make sure you can afford to repay the loan. You will need to demonstrate a stable income, disclose any existing debts and provide an overview of your financial situation.

A common guideline is that your total monthly loan repayments should not exceed approximately 30–35% of your net income. If you already have a mortgage in your home country, those payments will also be taken into account.

You will normally need to provide tax returns, payslips or other proof of income, bank statements and details of any existing loans. Self-employed applicants may be asked to provide additional documentation.

Fixed or Variable Interest Rates?

Spanish banks offer both fixed-rate mortgages (hipoteca fija) and variable-rate mortgages (hipoteca variable), with the latter usually linked to Euribor. There are also mixed-rate mortgages (hipoteca mixta), where the interest rate is fixed for an initial period before switching to a variable rate.

The best option depends on your financial circumstances, how long you intend to own the property and how comfortable you are with potential interest rate fluctuations.

How Do Mortgage Repayments Work?

One important difference compared with some other countries is that Spanish mortgages generally require regular repayment of the loan principal. This means that each monthly payment covers both interest and part of the amount borrowed. Interest-only mortgages are not standard in Spain, regardless of how strong your financial position may be.

The time you have to repay your mortgage depends partly on your age. Most banks require the loan to be fully repaid by the time the borrower reaches around 75, although some accept an upper age limit of 80. For example, if you are 55 years old, you may need to repay the entire mortgage over 20–25 years, whereas a younger buyer may qualify for a repayment term of up to 30 years.

This is important to bear in mind, as a shorter repayment period means higher monthly payments, even if the loan amount and interest rate remain the same.

How Does the Process Work?

Ideally, you should explore your financing options before you even start viewing properties. An initial assessment from a bank will help you establish a realistic budget and put you in a stronger position when you find the right home.

Once you have found a property, the bank will carry out an individual credit assessment and arrange an official property valuation, known as a ”tasación”. The final mortgage decision is then made based on the results.

Before signing, you will receive detailed information about the mortgage terms and attend a mandatory meeting with a notary, who will explain the conditions of the loan. The mortgage deed is then signed before a notary as part of the property purchase process.

A Few Things to Keep in Mind

Spanish banks have different lending criteria, and not all of them offer mortgages to non-resident buyers. The interest rate you are offered will depend on factors such as your financial profile, the loan-to-value ratio and whether you take out additional products or services with the bank.

It is also important to remember that an initial mortgage approval is not a guarantee of financing. If you depend on a mortgage to complete your purchase, you should make sure this is properly addressed before signing a binding purchase agreement and paying a deposit.

An Option Worth Exploring

Buying a property in Spain does not necessarily mean having to pay the entire purchase price from your own savings. With the right preparation and a realistic budget, a Spanish mortgage can be an excellent option, even if you live and work in another country.

At Felicity Estates, we are happy to help put you in touch with local banks to explore your mortgage options.