Mortgages for Nordic Buyers in Spain

Mortgages for Nordic buyers in Spain: what to expect

Financing a new-build home on the Costa del Sol is straightforward for Nordic buyers, but the rules for a Spanish non-resident mortgage differ from those in Sweden, Norway, Denmark or Finland. This guide explains how much Spanish banks lend, the taxes that sit alongside the loan, and the paperwork a Swedish buyer needs. As Swedes are EU citizens, no investment visa is required to buy or to live in Spain; you register as an EU resident if you move over. For related reading, see our guides on buying costs and taxes, the NIE and opening a Spanish bank account, and off-plan purchase and bank guarantees.

How much will a Spanish bank lend a non-resident?

The single biggest difference for a non-resident mortgage is the loan-to-value (LTV). Spanish banks typically lend residents up to 80 percent of the lower of purchase price or valuation, but non-residents are usually capped at around 60 to 70 percent.¹ That means a Swedish buyer should plan for a deposit of at least 30 to 40 percent of the price, on top of purchase taxes and fees. LTV is a commercial policy that varies by bank and by borrower profile, not a fixed legal limit, so it is worth comparing several lenders or using a mortgage broker.

Affordability and documentation

Spanish lenders assess affordability conservatively. As a rule of thumb, total debt repayments (including the new mortgage) should not exceed roughly 30 to 35 percent of net income. Expect to provide, translated where required: passport and NIE, the last two or three years of Swedish tax returns and payslips or company accounts if self-employed, recent bank statements, an employment reference, and a statement of existing debts. Non-residents are usually offered euro mortgages; borrowing in euros while earning in Swedish kronor introduces exchange-rate risk that you should factor into your budget.

Rates, term and product type

Spanish mortgages come as fixed, variable (indexed to 12-month Euribor plus a margin) or mixed. Terms for non-residents are commonly up to 20 to 25 years and usually must end by a set age (often 70 to 75). Compare the TAE/APR (which includes fees) rather than the headline rate, and check for tie-in products such as home insurance or life cover that lenders may attach.

The taxes that sit alongside the mortgage

For a new-build (first transfer from the developer), you do not pay transfer tax. Instead you pay:

As a guide, budget roughly 11 to 13 percent of the price for a new-build in taxes and fees, before mortgage arrangement costs. By contrast, a resale property in Andalusia is taxed under ITP (Impuesto sobre Transmisiones Patrimoniales) at a flat 7 percent, not IVA plus AJD.³ Since the 2021 mortgage-costs reform, the bank (not the borrower) pays the AJD on the mortgage deed itself, plus its own gestoria and valuation-related registry costs; you typically still pay for the property valuation (tasación).

Non-resident income tax: IRNR and Modelo 210

Owning Spanish property makes you liable for Non-Resident Income Tax (IRNR), declared on Modelo 210.⁴ There are two situations:

• Own use (no rental): Spain taxes an imputed income of 1.1 percent of the cadastral value (2 percent if the value has not been revised recently).⁵ Because Sweden is an EU member state, that base is taxed at 19 percent rather than the 24 percent that applies to non-EU/EEA residents.⁵
• Rental income: EU/EEA residents pay 19 percent and may deduct related expenses (finance costs, community fees, IBI, insurance, depreciation); non-EU residents pay 24 percent on gross rent with no deductions.⁵

Being an EU country, Swedish owners get the lower 19 percent rate and the deductions, which materially reduces the tax on a let property compared with, for example, a UK owner.

When you sell: the 3 percent retention

When a non-resident sells Spanish property, the buyer must withhold 3 percent of the price and pay it to the tax office (Modelo 211) as an advance on the seller’s capital gains tax; the seller then settles or reclaims the balance via Modelo 210.⁴⁵ The seller also normally pays plusvalía municipal (the local tax on the increase in land value).

IBI and other running costs

Every owner pays IBI (Impuesto sobre Bienes Inmuebles), an annual municipal property tax on the cadastral value. The law sets the urban rate between 0.4 percent and 1.1 percent, with the exact figure fixed by each town hall,⁶ so IBI on the Costa del Sol varies between municipalities such as Marbella, Estepona, Mijas and Fuengirola. Budget also for community fees, rubbish collection, utilities and non-resident tax filing.

Wealth and solidarity taxes

Andalusia effectively cancels its regional wealth tax through a full rebate, but a state-level Solidarity Tax on Large Fortunes can apply to very high net worth. Non-residents are assessed only on Spanish assets, and mortgage debt reduces the taxable base. Thresholds and reliefs change, so take advice if your Spanish assets are substantial.

Off-plan safeguards for new-build buyers

If you buy off-plan and pay stage payments before completion, Spanish law requires the developer to guarantee every amount you hand over through a bank guarantee or insurance policy, so your money is protected if the project fails. This protection, historically known under Ley 57/68, is now set out in the first additional provision of the Ley de Ordenación de la Edificación (Ley 38/1999).⁷ Always confirm the guarantee is in place before transferring funds, and pay into the developer’s dedicated escrow account.

Living in Spain: residency, healthcare and schools

Spain’s residence-by-investment scheme (the golden visa) was abolished in April 2025,⁸ but Swedish buyers do not need it: as EU citizens you have freedom of movement and simply obtain an EU registration certificate (certificado de registro) if you stay beyond 90 days. For healthcare, EU citizens use the EHIC for short stays; Swedish pensioners who move over can access the Spanish public system via the S1 form, and many owners also hold private cover. Families relocating from Sweden have the option of the state-recognised Swedish school on the Costa del Sol in Fuengirola, alongside numerous international and bilingual schools across the coast.⁹

The Sweden to Spain tax angle

Sweden and Spain have a double taxation treaty that determines which country taxes what and prevents the same income being taxed twice.¹⁰ In practice, Spanish property is taxed in Spain (IRNR, IBI, any gain on sale), while your Swedish tax position on that income is handled under the treaty and Swedish rules. Cross-border taxation of Nordic residents (especially pensions) has been a moving area, so confirm your position with an adviser qualified in both countries before you complete.

Getting the paperwork right

Two documents unlock everything. First, the NIE (Número de Identidad de Extranjero), the foreigner’s tax identity number, which you need before signing, opening a bank account or registering a mortgage; you can apply at a Spanish consulate in Sweden or in person in Spain. Second, an independent lawyer (not the developer’s) to run due diligence, check the guarantee, and manage completion at the notary. With the NIE, a lawyer and a mortgage agreement in principle in hand, a Nordic buyer can move through a Costa del Sol new-build purchase smoothly. See our related guides on the NIE, buying costs and the off-plan process for the next steps.