Spanish mortgages for foreigners – how to qualify and get the best rates

Buying property in Spain is a dream for many international buyers, and for most, that dream includes financing part of the purchase with a mortgage.
Spain offers accessible mortgage options to foreign and non-resident buyers, though the process differs slightly from what you might expect at home.

This guide from Bostello.com explains how Spanish mortgages work, who qualifies, what rates you can expect, and how to secure the best deal when buying property in Spain.

How Spanish mortgages work

Spanish mortgages, known as hipotecas, operate under local banking laws that favor long-term repayment and fixed or variable interest options.
For foreigners, most major Spanish banks – such as Santander, CaixaBank, Sabadell, and BBVA offer dedicated non-resident mortgage products.

Typical mortgage structure

• Loan term: up to 20–25 years (residents can get up to 30).

• Deposit requirement: 30–40% for non-residents.

• Loan-to-value (LTV): generally 60–70%.

• Currency: typically in euros.

Foreign buyers can choose between:

• Fixed-rate mortgages, offering long-term stability.

• Variable-rate mortgages, often linked to the Euribor benchmark rate.

• Mixed-rate mortgages, combining both.

Learn more about buying property in Spain for the full purchase framework.

Who can apply for a mortgage in Spain

Spain allows both residents and non-residents to apply for property financing, though the conditions vary.

Eligible applicants include:

• EU and EEA citizens.

• UK nationals.

• Non-EU citizens with stable income and credit history.

Key criteria for approval

Banks evaluate your income, employment stability, and credit profile. Most lenders require:

• Debt-to-income ratio under 35%.

• Minimum annual income of €30,000-€40,000 (depending on loan size).

• Consistent work or self-employment record for 2+ years.

You’ll also need to secure an NIE number (Número de Identificación de Extranjero) – Spain’s identification number for foreigners before applying.

See all legal requirements for property buyers before you start.

Mortgage types and interest rates in Spain

Interest rates in Spain are influenced by the Euribor (Euro Interbank Offered Rate).

In early 2025, average rates are:

• Fixed-rate: 3.8%–4.2%

• Variable-rate: Euribor + 1.0%–1.5% (approx. 4.0–4.5%)

Some banks offer green or energy-efficient mortgages with slightly lower rates if your property meets sustainability standards.

Review related costs in our guide to property taxes in Spain

📊 Tip: Use online mortgage calculators at Habeno

Costs and fees when getting a Spanish mortgage

Aside from the property price, several additional costs apply when taking out a mortgage in Spain.

Banks usually handle stamp duty (AJD) and formal registration after Spain’s Mortgage Law reform (2019), which made the process more transparent and fairer to buyers.

For total purchase costs, see the step-by-step buying process

Documents required and approval process

Applying for a mortgage in Spain as a foreigner requires clear documentation to prove your identity, income, and the source of funds.

Documents typically required:

• Passport and NIE certificate.

• Recent tax returns (last 2 years).

• Payslips or proof of self-employment income.

• Recent bank statements (last 3-6 months).

• Proof of existing assets or savings.

• Reservation contract or purchase agreement for the property.

Application process timeline

1. Pre-approval: Submit documents for preliminary analysis (2-3 weeks).
2. Property valuation: Ordered by the bank (1 week).
3. Final approval: Once valuation and underwriting are complete (1–2 weeks).
4. Signing: Loan deed is signed before the notary, usually alongside the property deed.

For a deeper legal overview, see legal requirements for buying property in Spain

How to increase your chances of approval

Spanish banks are conservative, especially with non-residents. Improve your approval odds by:

• Keeping existing loans or credit card debt low.

• Maintaining consistent income over time.

• Providing full documentation in Spanish or English translations.

• Offering a higher deposit (over 40%).

• Applying jointly with a co-borrower (spouse or partner).

It can also help to work with a mortgage broker specializing in foreign buyers, as they can negotiate better rates and handle paperwork directly with banks.

Need help? Talk to a mortgage advisor via Bostello’s trusted partners.

Mortgages and the Golden Visa

Can you use a mortgage to obtain a Golden Visa in Spain?
Yes, but only the unfinanced amount counts toward the €500,000 investment threshold.

For example:
If you buy a property worth €800,000 and finance €300,000, only the €500,000 equity counts toward your Golden Visa eligibility.

Many investors combine the two – using partial financing to increase property value or diversify their portfolio.

Read our full guide on the Golden Visa in Spain for details.

FAQ – Spanish mortgages for foreigners

Can foreigners get a mortgage in Spain?

Yes. Both EU and non-EU citizens can apply for property financing in Spain through local or international banks.

What deposit do I need?

Most non-residents must provide 30–40% down payment.

What are current mortgage rates in Spain (2025)?

Fixed-rate loans average around 3.8–4.2%, while variable rates follow Euribor +1–1.5%.

How long does mortgage approval take?

Typically 4–6 weeks, depending on the bank and documentation.

Can I use a mortgage for a Golden Visa property?

Yes, but the unfinanced amount must be at least €500,000.

What documents do I need?

Passport, NIE, income proof, bank statements, and property reservation contract.