Spain has long been a dream destination for property buyers seeking sunny skies, beautiful beaches, and a laid-back lifestyle, whether looking for a second home, quiet spot for retirement or an investment opportunity.
No matter the reason for your purchase, understanding the Spanish mortgage system is crucial for a smooth buying process.
Let’s take a look at what’s involved in the process.
Is it hard to buy a house in Spain?
Buying a property in Spain (and securing a Spanish mortgage) doesn’t need to be complex. With the right preparation and assistance the process can be quite simple, even for non-residents.
Spain’s property market is well-regulated, but as a foreigner, there are a few unique challenges that you may encounter when trying to secure a mortgage, so it’s best to be prepared.
Some of the additional hurdles you will encounter may include:
- More paperwork and legal requirements: Non-residents can be subject to more rigorous checks to confirm viability, creditworthiness and income. For non-EU residents, these checks may be even more thorough.
- Limited product availability: While non-residents can obtain mortgages, banks may have stricter requirements and limit the options for non-residents.
- Regional variations: The property buying process can differ slightly between regions, something that complicates the process for non-residents. Working with a local adviser or broker may be a good option if you’re unsure about the local processes.
Analyse your case: Speak to an expert about what the process might look like for you.
Getting a Spanish mortgage
With these extra barriers in mind, how can non-residents buy a house in Spain with a mortgage?
The conditions for acceptance do vary slightly for residents and non-residents, largely in terms of the LTV (Loan-To-Value) and mortgage types available to the borrower.
Non-residents often need a larger down payment or deposit to secure a mortgage and rely on fixed-rate products from lenders.
There are also some document requirements for non-residents.
Document requirements for a Spanish mortgage
To apply for a home loan in Spain, you’ll need to provide:
- Proof of Identity: A passport or residence card.
- NIE (Número de Identificación de Extranjero): An identification number for foreigners in Spain.
- Proof of Income: Pay slips, tax returns, or bank statements. You may also need proof of employment in the form of a letter from your employer.
- Debt Information: Details of existing debts or financial obligations.
- Property Valuation Report: Arranged by the bank to assess the property’s value.
The process for getting a mortgage in Spain
What does the actual process for securing a mortgage in Spain look like?
1. Assess your financial situation
Try to evaluate how much you can afford to borrow and what you can pay upfront as a deposit. Use a Spanish mortgage calculator to estimate monthly repayments and identify a property value that is suitable.
2. Find a bank or mortgage broker
There are a number of ways you can find a lender or mortgage broker. Where possible try to use a local broker who will understand the process of buying a house in Spain with a mortgage. Local brokers will have a better understanding of fees and taxes and will be able to advise you on additional costs.
3. Submit documentation
Prepare all of the required documentation as soon as possible. To avoid getting caught in lots of back and forth between parties, try to gather essential documentation ahead of time. Collect bank statements, details of your income and any identifying documents needed.
4. Obtain pre-approval
Pre-approval can help speed up the process when searching for your dream home. Great properties in Spain are often sold quickly and pre-approval can ensure you’re ready to progress when you find the perfect home.
5. Property valuation and approval
The bank arranges for an independent valuation of the property. If approved, you’ll receive a formal mortgage offer.
6. Sign the mortgage contract
The final step involves signing the mortgage contract before a notary. Ensure you fully understand the terms before proceeding. A broker will be able to help you with this.
How much deposit do I need for a Spanish mortgage?
Non-residents typically need around 30-40% of the property value as a deposit. This is without considering any other potential fees.
Property purchase costs can range from 10-15% of the property price and usually include:
- Taxes (e.g., property transfer tax or VAT).
- Notary and registration fees.
- Legal fees.
Some areas and property types have additional taxes and costs.
As an example, here’s what might be required by a non-resident buyer for a Spanish property worth €300,000.
- Deposit: €100,000 (30%)
- Purchase Costs: ~€36,000 (12%)
- Total Upfront Cost: €136,000
Can a UK citizen get a mortgage in Spain?
Yes, UK citizens can get a Spanish mortgage though the process is slightly more complicated after Brexit.
UK citizens are typically limited to a lower LTV ratio (60-70%) and often fixed rate mortgages.
UK citizens may also need to provide extra proof of income or financial stability to satisfy Spanish banks.
Tips for getting a mortgage in Spain
Securing a mortgage in Spain can seem complex, but taking a few proactive steps can make the process much smoother.
Save a larger deposit
A large deposit not only boosts your chances of approval but may also enable you to choose from products with more attractive interest rates.
Planning ahead to save for the deposit and additional costs will put you in a stronger financial position when it comes to buying your dream property in Spain.
Work with a mortgage broker
An experienced broker who is familiar with the Spanish property market can guide you through the process, something that is particularly helpful for non-resident buyers.
They can be invaluable in helping you to identify the best mortgage options tailored to your needs and handle negotiations with banks.
Organise your documents
Spanish banks require lots of documentation, including proof of income and credit history.
It’s always wise to prepare this information early in the process rather than rushing when trying to secure the perfect property.
Conclusion
Buying a house in Spain is an exciting opportunity, but getting a mortgage in Spain as a foreigner requires careful planning and research.
By taking the time to understand the Spanish mortgage system, preparing the necessary documentation, and working with experienced professionals, you can navigate the process smoothly and have your dream home in no time.
How much does a home electrical installation cost in Spain?
How much does it cost to install or replace a home's electrical system?It’s one of the most common questions among those renovating or building a home from scratch.
Expat Taxes: Spain vs Portugal - A 2025 Guide for Foreign Residents
If you're considering relocating to Southern Europe, understanding how taxation differs between Spain and Portugal is essential.
How much does it cost to move in Spain in 2025?
One of the most common questions when preparing to move in Spain is: how much will it cost?
Spain vs. Portugal Cost of Living
If you're weighing up a move to southern Europe, Spain and Portugal are two of the most appealing destinations for expats and retirees alike.
School holidays in Spain: 2025-2026 dates
As the 2025–2026 school year approaches, some regions in Spain have already started confirming their term dates. School calendars can be a bit of a minefield here, especially with each autonomous community setting its own schedule on top of the national holidays that everyone enjoys.
Mortgage brokers in Spain: what they do, costs and key functions
One of the main challenges when purchasing a home is securing a mortgage that satisfies both your requirements and those of the lender. This process demands extensive documentation and clear evidence of financial standing, not only to obtain favourable terms but also to gain access to the mortgage market in the first place.
Mortgages in Spain for non-residents: your guide to buying a property with a Spanish mortgage
Are you a non-resident looking to buy property in Spain? Whether it’s a holiday home or an investment, understanding your mortgage options as a non-resident is essential before making a purchase. This guide explains how non-residents can secure a mortgage in Spain, typical lending conditions, and tips to improve your chances of approval.