Mortgages for Irish Buyers in Spain

Buying on the Costa del Sol is well within reach for Irish purchasers, and financing it is more straightforward than many expect. As European Union citizens, Irish buyers face none of the extra restrictions that apply to some non-EU nationals, and Spanish banks actively lend to non-residents. This guide to mortgages for Irish buyers in Spain covers how much you can borrow, the paperwork, the true purchase costs on an Andalusian new build, and how the Ireland-Spain tax treaty protects you from double taxation.

Can Irish buyers get a Spanish mortgage?

Yes. Irish nationals are treated as EU non-resident borrowers, which is the most favourable non-resident category. Spanish lenders assess your income, existing debts and credit history much as an Irish bank would, but they lend against a Spanish property valuation and apply their own non-resident lending limits. You do not need Spanish residency to borrow, and you do not need to move your salary to Spain.

The one document you cannot proceed without is an NIE (Numero de Identidad de Extranjero), the foreigner’s tax identification number required for the mortgage, the notary deed and every tax filing. Applying for your NIE early is covered in our separate guide to getting an NIE.

How much can you borrow? Non-resident LTV limits

Loan-to-value (LTV) is the share of the property price a bank will lend. For non-residents, Spanish banks typically cap lending at 60% to 70% of the valuation, with 70% reserved for the strongest income profiles ¹². This is lower than the 80% commonly available to Spanish residents on a main home ¹.

Two points matter for your budget:

• The bank lends on the lower of the purchase price or its own valuation (tasacion). If the valuation comes in below the price, your deposit rises to cover the gap ¹.
• Taxes and fees are not financed. The roughly 11-13% of purchase costs (see below) is paid in cash on top of your deposit.

In practice an Irish buyer of a 400,000 euro home should plan for around 30-40% of the price in cash: a deposit of 120,000 to 160,000 euros plus purchase taxes and fees ¹.

Interest rates and mortgage types

Spanish non-resident mortgages come as fixed rate, variable (priced over 12-month Euribor) or mixed. Fixed rates give payment certainty and are popular with overseas buyers; non-resident pricing is generally a little higher than resident rates and depends on your profile, the LTV and the term ²⁶. Terms commonly run to 20-25 years, often with an age cap (frequently around 75) by the end of the loan ²⁶. Because rates move, always confirm the live offer in writing before committing; we flag current rate ranges rather than fixing them here.

Documents an Irish applicant needs

Banks want to see stable, provable income. Typical requirements for an Irish PAYE or self-employed applicant are:

• Passport and NIE
• Recent payslips and your Irish employment contract, or two to three years of accounts and Revenue returns if self-employed ²⁶
• Six months of bank statements
• A recent Revenue statement or tax return showing declared income
• Evidence of existing loans and outgoings (Spanish lenders usually want total debt repayments below roughly 30-35% of net income) ²⁶

Documents in English are generally accepted by international mortgage desks, though some branches ask for a sworn Spanish translation.

Who pays which mortgage costs

Since Spain’s mortgage law (Ley 5/2019) came into force, the lender, not the borrower, pays the notary and Land Registry fees on the mortgage deed and the Actos Juridicos Documentados (AJD) stamp duty on the loan itself ⁴⁷. The borrower is left with two main mortgage costs:

• The property valuation (tasacion), typically 300 to 700 euros, paid by you ⁷.
• Any product fees the bank charges, such as an arrangement or opening fee, which are negotiable ⁷.

Note that this AJD relief applies only to the mortgage deed. The AJD on the property purchase of a new build is a separate tax you still pay (see next section).

Purchase taxes on a Costa del Sol new build

Because the Costa del Sol sits in Andalusia, these are the taxes that apply to a brand-new home bought from a developer:

So the tax on a new build in Andalusia is around 11.2% of the price. Add notary, Land Registry and gestoria fees for the purchase deed plus legal fees, and total purchase costs usually land near 11-13% of the price. (A resale home instead pays ITP transfer tax, not IVA and AJD; that is covered in our guide to taxes and costs of buying property.)

These purchase taxes are separate from your mortgage and are due at completion, which is why they must be funded in cash alongside the deposit.

Annual and ownership taxes to budget for

Owning a Spanish home creates yearly obligations that lenders expect you to service:

• IBI (Impuesto sobre Bienes Inmuebles): the annual municipal property tax, set by each town hall as a percentage of the cadastral value.
• Non-resident income tax (IRNR), filed on Modelo 210. As an EU resident you are taxed at 19% [2 (AEAT)]⁹. If you do not rent the property out, Spain still charges tax on a deemed (imputed) income of 1.1% or 2% of the cadastral value, depending on when that value was last revised, filed annually ². If you let the home, EU/EEA owners pay 19% on rental profit and, unlike non-EU owners, may deduct allowable expenses ².

Our dedicated guide to the Modelo 210 and non-resident income tax walks through the filing in detail.

The Ireland-Spain double taxation treaty

Irish buyers are protected by the Convention between Ireland and the Kingdom of Spain for the avoidance of double taxation, signed in Madrid on 10 February 1994 and in force through Irish law ³. Under the treaty, income and gains from Spanish property are taxable in Spain, and Ireland then gives credit for the Spanish tax paid so the same income is not taxed twice ³. In practice you file and pay in Spain first (via Modelo 210), then declare to Irish Revenue and claim relief for the Spanish tax. Because personal circumstances vary, confirm your position with an accountant familiar with both systems.

Selling later: the 3% retention

Plan your exit before you buy. When a non-resident sells a Spanish property, the buyer must withhold 3% of the sale price and pay it to the Agencia Tributaria on Modelo 211 within one month; this is an advance against your capital gains tax ². The seller then files Modelo 210 to settle the final bill (non-resident capital gains are taxed at 19%) and reclaims any excess if the 3% overshoots the real liability ⁹. Keep every invoice for improvements, as they reduce the taxable gain.

Practical steps for Irish buyers

1. Apply for your NIE early, in Ireland at the Spanish consulate or in Spain.
2. Get a mortgage decision in principle so you know your true budget before reserving.
3. Open a Spanish bank account for the deposit, direct debits and IBI.
4. Instruct an independent Spanish lawyer (not the developer’s) to run checks and handle the deed.
5. Budget 30-40% of the price in cash: deposit plus 11-13% costs.
6. Register for Modelo 210 filing from your first year of ownership.

With EU status, an established banking relationship and treaty protection, Irish buyers are among the best-placed foreign purchasers on the Costa del Sol. The key is to line up the NIE, the mortgage and the cash for taxes before you sign.

This guide is general information, not tax or legal advice. Rates and rules change; verify current figures with your bank, lawyer and the Agencia Tributaria before committing.