Mortgages for Foreign Buyers in Spain

Important — general information, not personalised advice. This is not legal, tax, or financial advice and has not undergone human legal review. Figures reflect the rules and market norms in force at the review date (28 July 2026); rates, loan-to-value limits, tax percentages, and lender criteria change and vary by lender, region, and nationality. Confirm every figure, and how it applies to your case, with a licensed independent adviser (a colegiado tax adviser or abogado) before acting.

TL;DR: Foreign nationals can get a mortgage in Spain, but non-residents face stricter conditions. They can typically borrow only 60–70% of the property’s value (purchase price or appraisal, whichever is lower), needing a deposit of 30–40% plus purchase costs [5]. Since Spain’s mortgage law (Ley 5/2019), several costs — including the mortgage stamp duty (AJD) — are paid by the bank, not the borrower, and the lender must give you the binding FEIN offer at least 10 calendar days before signing [1][2].

Spanish banks are well-accustomed to lending to international clients, but the conditions differ from those for residents. This guide draws on primary sources — Ley 5/2019, the Banco de España “Cliente Bancario” guidance, and the Agencia Tributaria — so the framework reflects official rules rather than marketing claims.

Can foreigners get a mortgage in Spain?

Spanish banks offer mortgages to foreign nationals whether or not they are tax-resident in Spain. A person is generally treated as a Spanish tax resident when they spend more than 183 days in a calendar year in Spain (Art. 9 LIRPF); below that, and filing taxes elsewhere, you are generally non-resident. While nationality can matter — EU/EEA citizens sometimes get better terms — the primary distinction lenders draw is your tax residency status [5].

Resident vs. non-resident: loan-to-value (LTV)

The biggest difference for foreign buyers is the maximum loan-to-value (LTV) a bank will offer. These are market norms, not fixed by law, and depend on your profile and nationality:

• Non-residents: typically a maximum of 60–70% of the purchase price or the official valuation (tasación), whichever is lower — implying a deposit of 30–40% plus purchase costs. Buyers from outside the EU (e.g. UK, US, Switzerland) are often offered less, closer to 50–60% [5].
• Residents: Spanish tax residents can often secure up to around 80% of the property’s value [5].

LTV is normally calculated on the lower of the purchase price or the bank’s appraisal; if the appraisal comes in below the price, the buyer typically covers the shortfall [2].

Interest rates: fixed vs. variable

Spanish mortgages are generally offered with three main interest-rate structures [2]:

• Fixed rate (tipo fijo): the rate stays the same for the whole term, so the monthly payment is constant and predictable.
• Variable rate (tipo variable): a benchmark index (almost always the 12-month Euribor) plus a fixed margin set by the bank (e.g. Euribor + 1.5%). The payment is revised periodically, usually every 6 or 12 months, and moves with the Euribor.
• Mixed rate (tipo mixto): a hybrid that starts with a fixed-rate period (commonly 5 or 10 years) before converting to a variable rate for the remainder of the term.

Actual rates and margins vary by lender and market conditions.

Documents required for a mortgage application

Requirements vary by lender, but a typical non-resident file includes:

• NIE number (Número de Identificación de Extranjero) — the mandatory Spanish ID number for foreigners.
• Valid passport.
• Proof of income/employment — employment contract and recent payslips (often the last 3–6 months), or, if self-employed, recent tax returns and business income.
• Tax returns — typically the last one or two annual declarations from your country of residence.
• Credit report from your home country (e.g. Experian, Equifax).
• Bank statements for your main account(s), often the last 6–12 months.
• Existing debts — any current loans or mortgages abroad.

Documents not in Spanish usually require a sworn translation (traducción jurada), and some may need an Apostille of The Hague.

Costs and the mortgage law (Ley 5/2019)

A major change came with Spain’s Real Estate Credit Act (Ley 5/2019, de 15 de marzo), which transposed an EU directive, increased transparency, and shifted several costs from the borrower to the lender [1].

Costs generally paid by the BUYER:
* Property valuation (tasación) — an independent appraisal required by the bank; typically a few hundred euros [2].
* Arrangement fee (comisión de apertura) — a one-off set-up fee some banks charge (many no longer do); where charged, it is a percentage of the loan and must be disclosed up front [2].
* Their own legal adviser.

Costs paid by the LENDER (since the late-2018/Ley 5/2019 changes):
* Mortgage stamp duty (AJD — Actos Jurídicos Documentados) — the tax on the mortgage deed (rate varies by autonomous community), the lender’s liability since Real Decreto-Ley 17/2018 (in force 10 November 2018) [1][4].
* Notary fees for the mortgage deed [1].
* Land Registry fees for registering the mortgage charge [1].
* Gestoría fees for the mortgage paperwork [1].

Note: the AJD paid by the lender is the tax on the mortgage deed. The buyer still pays the tax on the property purchase itself — VAT (IVA) plus AJD on a new-build, or transfer tax (ITP) on a resale — a separate buyer-side liability administered by the autonomous communities, at rates that vary by region and change over time. Confirm the current figures for your province with a tax adviser [4].

Currency and exchange-rate risk

If you are a non-resident earning income in a currency other than the euro (e.g. GBP, USD, CHF), a euro-denominated mortgage means your monthly repayments fluctuate in your home currency as the exchange rate moves. Ley 5/2019 (Art. 20) gives borrowers the right, under certain conditions, to convert a foreign-currency real-estate loan into the currency in which they earn most of their income or that of their country of residence [3]. The “multi-currency mortgage” (hipoteca multidivisa) is a complex product — both the interest rate and the outstanding debt can move with the exchange rate, and switching has a cost — so it warrants careful, professionally advised consideration [3].

How to get a mortgage in Spain as a foreign buyer

1. Get your NIE — the Spanish Foreigner’s Identification Number, essential for legal and financial transactions [5].
2. Gather and translate your documents — income proof, tax returns, credit reports and bank statements, officially translated into Spanish where needed.
3. Approach banks or a broker — many banks have dedicated non-resident departments, or a specialist broker can compare offers [5].
4. Get the binding offer (FEIN) — issued once the bank approves your file in principle [1][2].
5. Property valuation — an independent appraiser (tasador) values the property; the loan is based on the lower of valuation or purchase price [2].
6. Pre-signing information and reflection period — under Ley 5/2019 the lender must deliver the FEIN and standardised documentation at least 10 calendar days (días naturales) before signing (Art. 14), and a free notary review (acta notarial) takes place at the latest the day before the deed (Art. 15) [1].
7. Sign the deeds — the purchase deed (escritura de compraventa) and the mortgage deed (escritura de préstamo hipotecario) before a notary, in person or via power of attorney.

FAQ

Q: Can I get a 100% mortgage in Spain?
A: Generally no. 100% mortgages are not typically available to non-resident buyers; maximum financing is usually 60–70% of the property value (sometimes less for non-EU buyers), so you fund the remaining 30–40% plus costs yourself [5].

Q: Who pays the mortgage stamp duty (AJD)?
A: Since Real Decreto-Ley 17/2018 (consolidated alongside Ley 5/2019), the lender (the bank) pays the AJD on the mortgage deed [1][4]. The buyer still pays the separate tax on the property purchase itself — VAT plus AJD on a new-build, or transfer tax (ITP) on a resale — at rates that vary by autonomous community [4].

Q: What protection do I have before signing the mortgage?
A: Under Ley 5/2019, the bank must give you the binding FEIN offer and standardised information at least 10 calendar days before signing, and you complete a free notary review of the terms (at the latest the day before signing) [1][2]. If your income is in a foreign currency, you also have the right, under certain conditions, to convert the loan to your income or residence currency [3].

Sources:
[1] BOE — Ley 5/2019, de 15 de marzo, reguladora de los contratos de crédito inmobiliario (consolidated text) — https://www.boe.es/buscar/act.php?id=BOE-A-2019-3814
[2] Banco de España — Hipotecas (Cliente Bancario) — https://clientebancario.bde.es/pcb/es/menu-horizontal/productosservici/financiacion/hipotecas/
[3] Banco de España — Hipoteca multidivisa (Cliente Bancario) — https://clientebancario.bde.es/pcb/es/menu-horizontal/productosservici/financiacion/hipotecas/guia-textual/hipotecasespecia/Hipoteca_multidivisa.html
[4] Agencia Tributaria (AEAT) — Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados (no residentes) — https://sede.agenciatributaria.gob.es/Sede/no-residentes/impuesto-sobre-transmisiones-patrimoniales-actos-documentados.html
[5] Banco Sabadell — Mortgages for non-residents (how to buy a home in Spain) — https://www.bancsabadell.com/cs/Satellite/SabAtl/Hipotecas/1191358394951/en/

General informational purposes only — not legal, tax, or financial advice, and not subject to human legal review. Rates, thresholds, and lender criteria change and vary by region and nationality; confirm all details, and how they apply to your case, with a licensed independent adviser (colegiado) before acting. Reviewed against official sources on 28 July 2026 by eVoost (Editorial).