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Mortgage in Spain for foreigners – deposit, conditions and formalities
Mortgage guide
Mortgage in Spain for foreigners – everything about the deposit and the formalities
A mortgage in Spain for foreigners is one of the most common topics among people who want to buy a flat, an apartment or a house on the Costa Blanca. Find out whether a Spanish bank will finance a purchase for a non-resident, how large a deposit you need, and which documents you will require.
Want to know the details of the purchase? Read our guide on buying property in Spain to understand the whole purchase process.
Can a foreigner get a mortgage in Spain?
Yes. A foreigner can get a mortgage in Spain, but the bank will assess their financial situation carefully and in detail. What matters is the source of income, the financial history, the level of current liabilities, tax residency and the property itself, which is to serve as security for the loan.
The Spanish market has a well-developed range of mortgages, and large banks such as Banco Sabadell and Bankinter have dedicated sections devoted to mortgage financing. Banks analyse every application carefully, but working with foreign clients is a standard part of their business.
A mortgage in Spain for foreigners – how does it work?
Resident vs non-resident
On the Spanish market it makes a big difference whether the client is a tax resident in Spain or a non-resident. For non-residents, banks usually take a more conservative approach, which most often means a lower percentage of financing and a more thorough review of the documents.
This is precisely why people buying property in Spain from abroad should plan for a larger contribution of their own funds from the outset. This more cautious financing model is consistent with how banks describe their terms for a second property and with the market's general approach to the loan-to-value ratio.
How much does the bank finance?
Spanish banks often finance around 60–70% of the property's value, especially when it comes to a foreigner or a non-resident. Bankinter states that for a second property, financing reaches up to 60% of the lower of the two values: the purchase price or the valuation.
Banco Sabadell also presents a standard mortgage model based on an individual assessment of the client and the property, with the option to simulate the terms before submitting any documents. This means that the buyer should not assume the bank will finance the full purchase price.
How large a deposit do you need to prepare?
This is the most important piece of information for the client: when taking out a mortgage in Spain as a foreigner, it is worth planning for a deposit of around 30–40% of the property price. If the bank usually finances around 60–70%, the rest has to be covered with your own funds.
From the point of view of planning the purchase, this assumption is far safer than counting on a higher level of financing. In practice, it is better to assume a larger deposit from the start than to adjust the budget later under time pressure.
Detailed guide: Discover the costs of buying property in Spain - all the taxes and fees.
What conditions do you have to meet to get a mortgage?
A bank in Spain will usually check the stability of your income, your form of employment or self-employment, your history of liabilities, and whether the instalment stays at a reasonable level relative to your earnings. Beyond the client's situation, the property itself also matters, because it is what provides security for the loan.
Banco de España publishes analyses confirming that lending policy and the indicators associated with mortgage risk are actively monitored on the market, and that financial institutions maintain a cautious approach to property financing.
Worth remembering
In practice, the more transparent the client's income situation, the smoother and more predictable the process. A bank looks more favourably on people with a regular, well-documented income than on clients with irregular earnings or income that is hard to prove.
Which documents are required?
The exact list of documents depends on the bank, but the following are most commonly required:
- Proof of identity (passport)
- NIE number (foreigner's identification number)
- Documents confirming your income
- Bank statements
- Tax documents
- Details of your employment or business activity
- Documents relating to the property being purchased
Banco Sabadell describes the mortgage process as a series of stages: simulation, submission of documentation, analysis of the offer, and signing of the contract and deed. In practice, for non-residents the bank may ask for a broader set of documents than for a domestic mortgage.
Tip: Bear in mind that a bank account in Spain makes it easier to handle the process and the later repayments. Bankinter and BBVA describe the option of using banking products as well as an online mortgage process.
What costs do you have to add on top of the deposit?
This is very important: a deposit of 30–40% does not yet represent the full budget needed for the purchase. On top of the deposit, you also have to add taxes and transaction costs.
The total budget when buying with a mortgage
- Deposit: 30–40% of the property price
- Taxes and costs: around 14–15% on top of the property price
A buyer purchasing with a mortgage should prepare two separate reserves
The first for the deposit of 30–40%, and the second for the purchase costs of around 14–15% on top of the property price. In its educational materials, Bankinter explicitly points out that buying a property with a mortgage also brings additional costs and taxes.
Which banks are worth talking to about a mortgage?
From the client's perspective, what matters is not only whether a bank offers mortgages, but also whether it can guide the client smoothly through the process and communicate the terms clearly. At Tripinvest ES we work with banks such as Banco Sabadell and Bankinter, which is why we can help clients prepare better for conversations about financing.
This does not mean that every client will receive an identical offer, because the loan terms depend on income, the deposit, residency status and the type of property. It is worth emphasising, however, that both Banco Sabadell and Bankinter have active mortgage offers, simulators and information processes for clients interested in financing a property purchase.
Why is it worth going through this process with a lawyer and an adviser?
When taking out a mortgage in Spain as a foreigner, it is not advisable to act alone. The client has to manage the bank documents, the property documents, the purchase formalities and the transaction costs all at once. On top of that, the bank analyses not only the income, but also the property itself and the way the transaction is carried out.
That is why it is safest to run the process with the help of a lawyer and someone who understands the lending market and can assess whether a given bank offer truly suits the client's situation. The lawyer should check the property documents and contracts, while a mortgage adviser can help to prepare the financing and the documents for the bank.
The risk of error when buying with a mortgage is greater
This solution is safer than going it alone, because the risk of error when buying with a mortgage is greater than with a straightforward cash transaction. This approach follows from the very structure of the mortgage process as described by the banks: analysis of documents, the offer, signing of the contract and the deed.
Summary
A mortgage in Spain for foreigners is a genuine option for buyers purchasing a flat, an apartment or a house, but it requires good preparation. The most important assumption, which is worth communicating clearly to the client, is simple: banks often finance around 60–70% of the property's value, so you need to prepare a deposit of 30–40%.
On top of that come the taxes and purchase costs, which in practice are worth budgeting at around 14–15% on top of the property price. A further advantage is working with banks active on the mortgage market, such as Banco Sabadell and Bankinter, but regardless of the bank, it is best to go through the whole process with the help of a lawyer and a specialist.
Related articles
Sources
Banco Sabadell mortgage offer
Official bank websiteBankinter mortgages
Official bank websiteInformation on the lending market
Your Europe / EUFrequently asked questions
Can a foreigner get a mortgage in Spain?
How large a deposit do you need for a mortgage in Spain?
Does a mortgage in Spain also cover the taxes and purchase costs?
Does Tripinvest ES work with banks on mortgages?
Is it worth taking out a mortgage in Spain with the help of a lawyer?
Planning to buy a property in Spain with a mortgage?
Get in touch with Tripinvest ES — we will help you assess your budget, prepare the financing process and complete the purchase safely, including with the support of the banks we work with.
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