Mortgages for German Buyers in Spain

Mortgages for German buyers in Spain: how financing works

Getting a mortgage for a Costa del Sol home is straightforward for German buyers, but the rules differ from those at home. As a German citizen you are an EU national, so you have full freedom of movement and do not need a visa or the former Golden Visa (residence by property investment was closed to new applicants on 3 April 2025).⁶ Because both Germany and Spain use the euro, a Spanish mortgage carries no currency risk, which is a real advantage over buyers from outside the eurozone. This guide covers loan-to-value limits, rates, the taxes that sit alongside the loan, and the documents a Spanish lender will ask for.

How much can German buyers borrow? Loan-to-value for non-residents

The key figure is your tax residency, not your nationality. If you remain tax-resident in Germany, Spanish banks treat you as a non-resident borrower and typically lend 60% to 70% of the purchase price or the valuation (whichever is lower). That means a deposit of 30% to 40%, plus roughly 10% to 12% on top for taxes and fees. Buyers who become Spanish tax residents can usually reach up to 80% loan-to-value.

Lenders assess affordability on a debt-to-income basis, generally wanting total monthly debt (including the new mortgage) to stay at or below around 30% to 35% of your net income. Terms commonly run 20 to 30 years, with most banks requiring the loan to be repaid by age 75. Both fixed-rate and Euribor-linked variable products are available; the 12-month Euribor is the standard reference index for variable Spanish mortgages.

Documents a Spanish bank will request

• A NIE (Número de Identidad de Extranjero), which is compulsory to buy property and to sign a mortgage.
• German tax returns (Steuerbescheid) for the last one to two years and recent payslips or, if self-employed, business accounts.
• Recent bank statements and an overview of existing debts (a SCHUFA-style credit picture).
• The property valuation (tasación), carried out by a valuer approved under Spanish mortgage rules.

Who pays the mortgage set-up costs?

Since Real Decreto-ley 17/2018, the lender pays the Actos Jurídicos Documentados (AJD) stamp duty on the mortgage deed, not the borrower.⁵ Under the mortgage credit law, Ley 5/2019 (LCCI), the bank also covers the notary, Land Registry and gestoría (processing) fees for the mortgage itself; the borrower normally pays only the property valuation.³ This has meaningfully reduced the up-front cost of financing compared with a decade ago. Note this AJD relates to the mortgage deed. AJD is charged separately on a new-build purchase deed (see below), and that purchase AJD is paid by the buyer.

Purchase taxes that sit alongside the mortgage

Financing is only part of the budget. The tax you pay depends on whether the home is a new build or a resale, and property tax on the Costa del Sol falls under Andalusian rules.

New-build property

A brand-new home bought from a developer carries IVA (VAT) at 10% of the price for residential property, which is a national rate, plus AJD (stamp duty) at the Andalusian general rate of 1.2% on the deed of sale.² So on a 400,000 euro new build you would budget around 40,000 euros IVA plus 4,800 euros AJD.

Resale property

A second-hand home does not attract IVA. Instead you pay Impuesto sobre Transmisiones Patrimoniales (ITP), which Andalusia sets at a flat 7% of the price.² There is no separate AJD purchase charge on a resale.

The 3% retention on non-resident sellers

If you buy a resale from a non-resident seller, you as buyer must withhold 3% of the price and pay it to the Agencia Tributaria via Modelo 211, as an advance on the seller’s non-resident capital gains tax.¹ This does not apply when you buy a new build from a Spanish developer. It is the seller’s obligation that you administer, but it matters because your lawyer manages it at completion.

Ongoing taxes for German owners

Once you own the home, two recurring liabilities matter most:

• IBI (Impuesto sobre Bienes Inmuebles): an annual municipal property tax based on the valor catastral (cadastral value). Rates are set by each town hall and typically fall in a broad 0.4% to 1.1% band of the cadastral value.⁷
• IRNR (non-resident income tax), via Modelo 210: even if you never rent the home out, Spain taxes a notional imputed income for the period it is at your disposal. This is calculated as 1.1% of the cadastral value (where that value has been revised within the last ten years) or 2% otherwise, and taxed at 19% for residents of the EU or EEA, which includes Germany. If you rent the property out, EU residents are also taxed at 19%, but on the net income after deductible expenses.¹

The Germany-Spain double taxation treaty

Germany and Spain have a double taxation convention (the current treaty was signed on 3 February 2011 and has applied since 1 January 2013) that prevents the same income being taxed twice.⁴ In practice, income from Spanish property is taxable in Spain first; Germany then applies its own rules to avoid double taxation while generally taking the Spanish income into account for your German rate (progression). You should file the Spanish Modelo 210 and declare the asset appropriately in Germany. Because cross-border tax interacts with your personal situation, take advice from an adviser qualified in both countries.

Buying off-plan: deposit protection

Many Costa del Sol new builds are sold off-plan. Spanish law requires a developer to guarantee (via bank guarantee or insurance) any amounts you pay on account before the home is finished, a protection originally established by Ley 57/1968 and now contained in the Ley de Ordenación de la Edificación (Ley 38/1999).⁸ Never pay a stage payment into an unsecured account; your lawyer should confirm the guarantee is in place. See our related guide on buying off-plan and Ley 57/68 deposit guarantees.

Relocation: schooling and healthcare

German families relocating to the province of Málaga have access to the Colegio Alemán Juan Hoffmann (Deutsche Schule Málaga), which follows the German curriculum, alongside a wide range of international and bilingual schools across the coast. For healthcare, as an EU citizen you can use the EHIC card for short stays; if you move permanently, pensioners can register with the Spanish system using the S1 form, while working-age movers typically use private health insurance or contribute to Spanish social security. Confirm current arrangements with your local town hall (empadronamiento) and the German consulate.

Practical sequence for a German buyer

1. Obtain your NIE (in person in Spain or through the Spanish consulate in Germany).
2. Get a mortgage decision in principle so you know your real budget, including the 30% to 40% deposit for non-residents.
3. Engage an independent Spanish lawyer (not the developer’s or agent’s).
4. Reserve the property, then sign the private purchase contract with deposit protection where off-plan.
5. Complete at the notary, where the purchase and the mortgage are signed, taxes are settled and the deed is registered.

For the wider cost picture, read our companion guides on new-build purchase costs, the NIE application process, and Modelo 210 non-resident tax filing.

This guide is general information, not tax or legal advice. Rates and thresholds change; confirm current figures with the Agencia Tributaria, the Agencia Tributaria de Andalucía and a qualified adviser before you commit.